The analytics firm Santiment has spotlighted Chainlink (LINK), indicating it may experience continued growth. The firm’s analysis also touched on Bitcoin‘s (BTC) current performance and potential influence on the altcoin market.
Decoding Chainlink’s Growth Prospects
Santiment conveyed through social media channels that despite a dip in the number of active LINK wallets, Chainlink’s value could persist in its upward trend. The firm interprets such declines in wallet activity as signals of market apprehension, which it believes could precede a price surge.
Chainlink recently led altcoins with a massive activation of dormant wallets, calculated by combining inactivity days of the assets with a significant multiplier. This reinvigoration of LINK within the network is seen as a contributor to its appreciating value. Alongside, minor sell-offs from smaller wallets could serve as further fuel for Chainlink’s price escalation.
Bitcoin’s Influence on Chainlink’s Market Position
At the time of the report, LINK’s value had increased by 12% within 24 hours, reaching $18.76. Santiment then turned its focus to the social dominance metric for Bitcoin, which tracks cryptocurrency mentions across social networks. They suggest a possible downturn in Bitcoin discussions, which could benefit altcoins like LINK if Bitcoin’s performance improves in February, hinting at market overconfidence and possible neglect of alternative cryptocurrencies.
Santiment’s analysis implies that discussions of Bitcoin on social platforms have evolved from fear indicators to symbols of market greed, particularly following mid-2023 enthusiasm around exchange-traded funds (ETFs). The recent normalization of this trend could shift the spotlight back to altcoins, potentially aiding in Chainlink’s growth trajectory.