LINK Price Not Ready to Rebound, While Chainlink’s Proof of Reserve to Audit $1 Bln WBTC
Yesterday, the crypto market took a hit on the news of BitMEX facing criminal charges. Chainlink (LINK) was one of the top cryptos that reacted the most violently, losing 15.3% of its value.
At the time of writing, LINK has been trading at $8.95 while managing just about $270 million in ‘real’ volume in the past 24 hours.
“Chainlink traders have been hurt more than most top 100 blockchain traders over the past 30 days, and our MVRV metric is indicating that a buy-low opportunity has arisen,” noted data provider Santiment.
“While the average BTC and ETH trader is break-even in this time, LINK trader returns are at -20% in this time span. The sentiment is low, FUD is rampant, and a rebound is more likely than not under these conditions,” it added.
Holders’ distribution chart also reveals that the Chainlink whales, the non-exchange addresses, have also been selling some of their stash. Earlier this month, they were busy accumulating LINK, and now the signs of distress have them unwinding their position.
Addresses holding 100k to 10 million LINK have declined by over 3.5% in a fortnight.
While LINK price might be cooling off since hitting its peak in mid-August after a smoking rally in 2020, Chainlink continues to expand its ecosystem.
In the latest news, BitGo has announced that it will be working with Chainlink for the auditability of Wrapped Bitcoin (WBTC) reserves to scale its reliability and support the growing demand that brings nearly $1 billion BTC ($966 million to be exact) on Ethereum.
“DeFi applications can now receive definitive onchain proof about the fully backed collateralization of WBTC. This novel onchain proof of reserve is possible because of the openness of the Bitcoin network, transparency provided by BitGo, and the highly secure decentralized oracle network that Chainlink powers,” reads the official announcement.
Chainlink's decentralized oracle will be used by WBTC Proof of reserve reference contract to check the balance of BTC custody wallets every ten minutes, and whenever a deviation is spotted, an on-chain update would be updated.
This will be beneficial for decentralized applications that use WBTC as collateral, provide Dapps additional options for protection against unexpected events, and increase the transparency in WBTC collateralization and user trust across the market.