Chainlink struggles to rally despite important ecosystem updates

Ethereum whales are loading up on Chainlink (LINK)

Chainlink (LINK) often bills itself as the platform that will eventually democratize blockchain. There is no doubt that the days of coins are better. But in 2022, prices remain largely subdued. This is true even as LINK continues to report impressive ecosystem updates. Here are some notable developments:

Chainlink adoption continues to surge in 2022, with more integrations expected this year.

LINK has also seen an increase in cross-chain activity in recent weeks.

Nonetheless, the price of LINK has failed to increase by more than 10% month-on-month in 2022.


Data source: TradingView

Why doesn’t the ecosystem update push LINK?

In a normal market, you would expect such important ecosystem news to have a huge impact on prices. In fact, announcing more integrations would give LINK at least a 20% boost in a month. But this is not a normal market.

In 2022, we see very high volatility and slowing investor sentiment. So while LINK’s fundamentals remain solid and sound, risk aversion means investors are just waiting for the moment before deciding to buy. Also, there are other questions about LINK.

For example, the project is facing huge competition from other new entrants. Chains like Solana and Polkadot are raising the bar when it comes to scalability and access. As a result, investors seem to be starting to diversify their funds as they try to profit from each new project. This puts LINK at a disadvantage.

Can LINK still bring good returns?

Notably, LINK hit an all-time high of $57 a few months ago. The coin is now trading at a fraction of that.

Although we do not expect LINK to reach its ATH or even come close this year, there is still some potential for decisive profits for those buying Chainlink now. In fact, you could potentially triple your bankroll by the end of the year.

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