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HomeNewsChainlink's Major Upgrade: What Does v0.2 Mean for LINK Investors?

Chainlink’s Major Upgrade: What Does v0.2 Mean for LINK Investors?

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  • Chainlink has implemented the v0.2 upgrade on its network, expanding the staking pool size to 45 million LINK, representing 8% of the current circulating supply.
  • Despite the upgrade, LINK’s market indicators show a decline in accumulation and open interest, suggesting decreased market participation.

Chainlink’s Strategic Network Upgrade

Leading oracle network Chainlink [LINK] has announced a significant upgrade to its staking mechanism, marking an important development in the network’s functionality. The mainnet launch of the v0.2 upgrade comes eleven months after Chainlink first introduced staking in December 2022.

Expanding the Staking Pool

The v0.2 upgrade brings a notable expansion to the staking pool size. From the initial allocation of 22.5 million LINK, the pool has grown to 45 million LINK, which accounts for 8% of the altcoin’s circulating supply. This 96% increase signifies a substantial enhancement in the staking capacity of the network.

In addition to the expansion, Chainlink has implemented a phased approach for the migration to the new upgrade. This includes a nine-day priority migration period starting from November 28, during which existing v0.1 stakers can transfer their staked LINK and accrued rewards to the v0.2 system. Following this, a four-day early access period allows eligible LINK holders to stake up to 15,000 LINK tokens, before opening access to the general public.

LINK’s Market Reaction to the Upgrade

Despite the positive development of the v0.2 upgrade, LINK‘s market performance has been somewhat muted. The altcoin has seen a 4% increase in the last 24 hours, with a trading price of $14.58 at press time. However, broader market indicators suggest a decline in LINK accumulation and market participation.

The Money Flow Index (MFI) and the Chaikin Money Flow (CMF) indicators on LINK’s daily chart show a downward trend. The MFI rests below the center line, indicating that distribution activities have surpassed accumulation. Similarly, the CMF is poised to fall into negative territory, signifying a consistent exit of liquidity from LINK’s spot market over the past two weeks.

Futures Market Trends

The futures market for LINK mirrors this trend, with a steady decrease in open interest since November 12. The open interest has fallen by 35%, amounting to $291.3 million at press time.

Conclusion

The launch of Chainlink’s v0.2 staking upgrade marks a significant step in enhancing the network’s capabilities. However, the current market indicators for LINK show a decrease in accumulation and open interest, reflecting a cautious or hesitant response from market participants to the upgrade. This development highlights the complex interplay between network advancements and market dynamics in the cryptocurrency sector.

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AnnJoy Makena
AnnJoy Makenahttps://www.ethnews.com
Annjoy Makena is an accomplished and passionate writer who specializes in the fascinating world of cryptocurrencies. With a profound understanding of blockchain technology and its implications, she is dedicated to demystifying complex concepts and delivering valuable insights to her readers. Business Email: info@ethnews.com Phone: +49 160 92211628
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