ChainLink Token (LINKUSD)

[stockvaper]

Just Remember.....

LINK, like every other cryptocurrency (including
bitcoin), is a demand-driven network asset. As such,
its value is dependent upon the number of “users” of
the network. It is therefore possible to value the
ChainLink network with Metcalfe’s Law, so long as a
reasonable user count can be established.

Unique Function Callers as an Accurate User Count

Our prior research on ChainLink used active addresses
and Ethereum price. Active Addresses as a proxy for
users may be very useful but has two drawbacks.

1. It is an estimate of user growth, and tends to only capture those individuals that transact in the cryptocurrency.

2. Cryptocurrency is an immature market prone to feedback loops between price and user activity. This means active addresses can be reflective of short-term ups/downs.

ChainLink’s daily function caller activity can vary greatly from day to day. However, we can look at long- and short-term trends and estimate a high and low boundary around LINK’s daily Metcalfe Value.



LINK’s price has mostly stayed above the lower bound of this range. Three notable exceptions are December 2018 (the nadir of “crypto winter”) and the market crash of March 2020. And now....the crypto crash 2021.




Notice the long term trend has always fell back to within the Metcalfe value range. (Which goes up expotentially). Thus Link has math on it's side.