Why Chainlink’s Price Could Drop Further As Network Usage Declines
The cryptocurrency market has been on a decline for most assets. While the dip is mostly a shock to most, it seems there is a rational explanation for Chainlink’s downward trend. According to an analyst Timothy Peterson, the dip is likely to worsen because of a recent decline in the use of the Chainlink network.
The analyst says that LINK’s price is ”heavily” influenced by the actual use of the Chainlink network (function calls) which has declined significantly. Based on Metacalf’s Law which Peterson uses as the basis for his predictions about the market, the price of LINK is expected to follow in the downward movement of its network usage.
“#ChainLink’s price is heavily influenced by function calls – actual use of the ChainLink network. Those calls have dropped back down to trend, I expect price to follow,“ he wrote on Twitter.
LINK like many other top cryptocurrencies has had its fair share of good heydays this year. However, the current pullback has been across the board and the 6th largest cryptocurrency is taking a strong hit as well. Currently trading at $11.46, it has dropped from just under $20 and hovered around $15 for a while before this major drop. With this current prediction, it remains to be seen where the price is headed.
Meanwhile, the same analyst had predicted earlier that LINK could hit up to $32 by the end of 2020. It may be too early to tell and LINK marines have been banking on the prediction, but this new state of things poses a major question which many could be asking – will LINK still reach $32 by year-end?
Peterson has also predicted that XRP may never reach $1 let alone $10. He maintains that his predictions are based on maths and not emotions and so are not likely to fail. He recently stated that he was willing to stake his 4 years of “intensive research” into Bitcoin and other cryptocurrencies against a Twitter user who tweeted that Bitcoin is a “crapshoot”.