According to data from Santiment, the development activity on the leading crypto network Chainlink (LINK) has increased since the early access mainnet launch of the Cross-Chain Interoperability Protocol (CCIP) on July 17th. The product was introduced to solve the connectivity issue between blockchain networks, according to the CCIP documents.
The Web3 ecosystem has become multi-chain with the rise of Layer 1 and Layer 2 scaling solutions. However, these networks operate in isolation and face limitations in communication with traditional systems and other blockchains. Chainlink CCIP was designed to bridge this gap and facilitate asset transfers and information exchange between multiple blockchains.
Santiment’s development activity measurement tracks the activity in a project’s general GitHub repositories. This measurement is a good indicator of a project’s commitment to development and the likelihood of being a scam. As of writing, Chainlink’s development activity, which was at 403, has increased by 53% since July 19th.
According to data from Token Terminal, the code commitment level in Chainlink, which measures the number of code changes made in the core codebase, increased by over 50% last week. Additionally, at the time of writing, LINK was trading at $5.97. The token’s price has been steadily declining since September 8th. However, while the price is in a downward trend, readings from key momentum indicators on the daily chart may indicate liquidity entering the spot market for the altcoin.
For example, despite the price decline last week, LINK’s Chaikin Money Flow (CMF) remained above the zero line. At the time of writing, the metric returned to a positive 0.13. This suggests that despite the slowdown in the token’s value in the past few days, it continues to see capital inflows into the market. A CMF buy signal occurs when a token’s price enters a downtrend and its CMF diverges from a lower dip level and rises.