Chainlink's onchain transaction volume has jumped to record highs above $4 billion, according to glassnode.
The non-price metric rose stood around $500 million in May 2019.
An onchain transaction is a transfer of cryptocurrency value (LINK) that is broadcast to the network and collected into blocks.
So, the surge in the onchain volume seen since May 2019 represents increased network activity.
The improvement in the onchain metrics, however, failed to translate into price gains. LINK fell by 48 percent in the second half of 2019, apparently following bitcoin, the anchor for broader markets, fell by more than 50 percent.
Currently, LINK is priced at $2.24 on Coinbase, up 27 percent on a year-to-date basis. Meanwhile, bitcoin is up 19 percent.
LINK's outperformance has triggered speculation that the rise in the onchain volume is drawing bids for the cryptocurrency.
Seasoned traders, however, would point out that cryptocurrency prices seldom take cues from onchain metrics like transaction volume, except in case of reward halving, which has boded well for bitcoin in the past. |