2020’s last quarter has seen the cryptocurrency market navigate a series of rallies and corrections. Even though Bitcoin [BTC], owing to its position as the world’s largest cryptocurrency, has grabbed most of the market’s attention, another altcoin has marched its way into the market’s top 10, one conceived as an alternative investment to BTC during the latter’s sideways movement.
Chainlink may be a hedge, but is it a long-term investment?
The attached chart highlighted the number of outgoing and incoming investors on LINK’s network over the past few months. It must be noted that while there have been investors flooding the LINK market for a long time, it escalated as the crypto-market underwent low volatility and sideways movement. By mid-July, when the bullish momentum had returned to the crypto-market, investors in LINK also increased, with the first peak witnessed by the end of July, a time when the value of LINK climbed to $8 from $4. After this, another peak was seen in August, given the bullish trend.
However, the outgoing crowd visibly cashed out more during the peaks noted in LINK’s value since July. This suggested that middle-size investors enjoyed the price spikes to cash-out, with a new wave of smaller investors subsequently entering the market.