Oracle service provider Chainlink (LINK) has experienced a strong retracement in its price, dropping by 4% in the last 24 hours. The LINK price is currently at $7.60 with a market cap of $4.2 billion. The trading volume for Chainlink has also increased by 20% to $370,072,812. Market analysts have been expecting this correction based on Santiment’s Market Value to Realized Value (MVRV) data. When Chainlink’s MVRV 30D exceeds 19%, it has historically led to significant corrections. Currently, LINK’s MVRV 30D has reached 20%, suggesting a potential short-term correction before further upward movement.
Chainlink recently launched “Data Streams,” a product aimed at reducing network latency. This integration of low-latency market data and automated execution facilitates the creation of fast derivatives products. By adopting a pull-based data oracle approach, Chainlink Data Streams provides high-frequency market data consistently off-chain. Oracle reports are generated for each block, allowing users to retrieve them off-chain and validate them through on-chain transactions. This approach mitigates latency issues and reduces the time required for data packets to traverse in distributed networks.
According to Chainlink co-founder Sergey Nazarov, Data Streams enables DeFi protocols to achieve execution speeds and user experiences comparable to centralized exchanges while maintaining fair, transparent, and decentralized infrastructure.
Hot Take: Chainlink Faces Retracement as Data Streams Aims to Reduce Network Latency
As Chainlink experiences a retracement in its price, dropping by 4% in the last 24 hours, market analysts have been expecting this correction based on Santiment’s MVRV data. LINK’s MVRV 30D has reached 20%, indicating a potential short-term correction before further upward movement.
In the midst of this price retracement, Chainlink has unveiled Data Streams, a product that aims to reduce network latency. By adopting a pull-based data oracle approach, Data Streams provides high-frequency market data consistently off-chain, mitigating latency issues and improving transaction speeds.
Chainlink co-founder Sergey Nazarov emphasizes that Data Streams allows DeFi protocols to rival centralized exchanges in terms of execution speeds and user experiences while maintaining decentralized infrastructure.
Overall, Chainlink faces short-term price challenges but continues to innovate in the space with products like Data Streams.
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