Chainlink v0.2 upgrade may not be fully priced in LINK
- Chainlink’s v0.2 upgrade may not yet be fully priced into LINK as the migration is underway.
- Chainlink's upgrade offers staking opportunities with a 45 million LINK pool size.
- The falling reserves and rising LINK accumulation signal positivity, while increased net deposits introduce uncertainty.
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Chainlink, an Ethereum-based platform that facilitates decentralized oracles, is gearing up for a significant upgrade with the introduction of its staking v0.2. On Friday, Chainlink's token LINK is trading in the 24-hour range of $7.27 and $7.69 after registering 5% price gain. However, the market might not have fully factored in the impending upgrade into the token's value, giving LINK chances of further price gains ahead.
Chainlink migration period is underway
Chainlink is in the spotlight for its v0.2 upgrade, which will allow staking access once the v0.1 migration period ends. As per the official release, "Chainlink Staking is being rearchitected into a staking platform with a total pool size of 45M #LINK."
This transition is said to be a significant overhaul of the network, promising greater flexibility for stakers, improved security guarantees, seamless future upgrades and a dynamic rewards mechanism.
#Chainlink is not a monolithic network
— ChainLinkGod.eth (@ChainLinkGod) October 18, 2023
It is a framework for creating millions of decentralized oracle networks
Each network powers a specific service, which can be configured to meet any user demand
External data, offchain compute, cross-chain connectivity, sky is the limit pic.twitter.com/vTkMI9X7Pd
If the market perceives the upgrade as a game-changer for Chainlink, the LINK token's value may have room for growth. It is possible that the upcoming v0.2 upgrade will be fully priced into the LINK token's value after the general access migration from v0.1 to v0.2 concludes.
Chainlink's exchange reserves paint positive picture
Two critical factors offer a mixed picture for Chainlink's LINK token. Firstly, exchange reserves or LINK tokens with exchanges have continued to fall in the last seven days. A decrease in exchange reserves typically suggests lower selling pressure, which is bullish for LINK price. With lower reserve availability on exchanges, with the last value close to $146 million, as per CryptoQuant data, LINK could potentially shift to more price appreciation.
FXStreet previously noted that LINK whale addresses have been accumulating, adding $38 million worth of tokens in the last week. This has been a positive contributor to its price.
Contrarily, the exchange netflow total, which represents net deposits on exchanges, has shown higher activity based on the 7-day average. This increase in deposits is often bearish as it anticipates higher selling pressure.
At the time of writing, the trading price of Chainlink's LINK token is $7.69. The token appreciated over 5% in the last 24 hours and 7% over the past week, based on CoinGecko figures.
As Chainlink's v0.2 upgrade progresses and the migration from v0.1 continues, the LINK outlook is promising. However, increased net deposits might limit the scope for appreciation for LINK. The potential impact of the upgrade on LINK's value will ultimately depend on how the market perceives the features.
Author
Shraddha Sharma
FXStreet
With an educational background in Investment Banking and Finance, Shraddha has about four years of experience as a financial journalist, covering business, markets, and cryptocurrencies.
