Chainlink: Checking LINK’s 20% drop amid a 4x jump in fees

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    The monthly fee revenue for CCIP jumped 4x last month.
    LINK slumped by 20% in the last month.

In the year 2023, Chainlink’s Cross-Chain Interoperability Protocol (CCIP) saw relatively little activity. However, there was a significant surge in network usage and fee income for CCIP during the year 2024.

CCIP sees increased demand in bull market

In March, the monthly fee income soared to an astounding $258,170, representing a substantial 4-fold increase from February’s figure, according to AMBCrypto’s observation via Dune Analytics. As of now, the fees amassed in April have surpassed $52,000, exceeding the monthly revenue seen in January.

In the past few months, there has been a significant increase in the overall number of requests using this protocol, highlighting its rising popularity within the Web3 community.

If you’re intrigued, CCIP represents a worldwide protocol that facilitates the exchange of data and tokens among various blockchains. Imagine it as a smoothly functioning connector linking diverse networks together.

In 2023, the growth path continued at a steady pace, possibly because of pessimistic market trends. However, as the current bull market gained momentum, there was increased demand for Chainlink’s primary product.

Why has LINK gone the other way?

Although more organizations adopted CCIP (Collaborative Cross-Chain Interoperability Protocol), this development did not significantly influence the price of LINK, the ecosystem’s native token. In fact, LINK experienced a decline of almost 20% over the past month, based on data from CoinMarketCap. The cryptocurrency’s market value surpasses $10 billion.

In fact, it’s reasonable to think that CCIP fees don’t benefit token owners; instead, these fees are solely kept by the nodes that operate the network.

After making that point, our analysis of historical data found that LINK experienced a 16% increase upon the launch of CCIP on the mainnet last year in July.

In the fourth quarter of 2023, the CCIP contract saw a noticeable decrease in activity. Surprisingly, the value of Chainlink nearly doubled during this period. This situation indicated a reverse relationship between the two.

Realistic or not, here’s LINK’s market cap in BTC’s terms

In contrast to the majority of coins in the larger market that experienced growth in the past month, LINK has underperformed and can be described as lagging behind.

The trading activity for LINK has been relatively low, suggesting a decrease in demand for the asset.

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2024-04-11 10:15