The KelpDAO exploit appears to be a blessing for the Oracle Chainlink (LINK) network.
Several protocols running on LayerZero’s network have since migrated to Chainlink’s CCIP. This change pushed network activity to record levels.
Why is Chainlink activity increasing?
Chainlink’s CCIP recorded its highest ever number of daily active addresses following recent migrations.
During the week of transition from KelpDAO to CCIP, daily active addresses climbed to 80.43K. This figure exceeded the previous record of 67,000 by almost 20,000.
Besides KelpDAO, four other protocols have migrated to CCIP. They included Lombard Finance, Kraken, Solv Protocol and Reinsurance Protocol. This peak reflects the direct impact of the migratory wave.
As usage of Chainlink’s CCIP increased, the service fees were converted to LINK tokens. This left traders wondering whether the increase in activity could support the price recovery.
Is buying pressure increasing for LINK?
Higher usage of CCIP has also increased the protocol’s revenue. The fees collected were used to purchase LINK tokens on the market, creating additional buying pressure.
Since the migrations began, more than 500,000 LINKs have entered the reserve. This equated to almost $5 million in purchasing volume.
On top of that, buybacks continued to fuel a potential supply squeeze. Chainlink’s total reserve has reached 3.66 million LINK, valued at approximately $35 million.
More importantly, Chainlink ETFs have continued to see positive inflows for over five months.
Since their launch, Grayscale’s GLNK and Bitwise’s CLNK have yet to record a single day of releases. Together, they represented 1.66% of LINK’s supply.
Can LINK organize this recovery?
LINK’s price action remained under pressure as sellers tightened their control over the market. The steady decline on the hourly chart pushed the altcoin towards the $9 support zone.
However, LINK then broke above a slanting resistance line and began showing signs of recovery near the lows.
The support area aligns with a historical demand area and could suggest a local bottom formation. Despite this, bulls were still facing significant general supply.
A failure below the current base could invalidate the current recovery attempt.
Final summary
- Chainlink’s CCIP hits new record for active addresses amid massive migration to Oracle after Kelp DAO exploit.
- The increase in activity has boosted demand, reduced supply and caused a potential change in market structure.
