- Chainlink and MATIC on-chain metrics were compared and investors have a clear favorite.
- This could be an early sign of better price performance for one of them in the coming months.
Chain link [LINK] is up just over 10% in the past week. Whales continued to rally the token, which was a positive sign for long-term investors.
The exchange flow was also negative, as was IntoTheBlock pointed out on X (formerly Twitter).
The Oracle Network Token is closely matched by the Layer 2 scaling solution Polygon [MATIC] in terms of market capitalization. They rank 16th and 18th respectively on the list of the largest cryptos.
How do their on-chain metrics measure up against each other?
The exchange reserve metric tracks how much of a token is on centralized exchanges. When the metric increases, it indicates that a large number of tokens have entered the exchange, likely to be sold.
Conversely, tokens disappearing from exchanges indicate that accumulation was underway. The above Chainlink exchange reserve chart shows that there has been a downward trend in the metric since mid-February.
On the other hand, MATIC has been slowly rising since mid-February. It fell from April 11 to 14, but quickly turned higher.
This showed that holders overall may not have confidence in the token and are steadily selling.
This measure is just one of many factors related to market-wide sentiment and asset accumulation or distribution.
Therefore, the findings alone cannot be used to draw conclusions about future price developments.
Sentiment comparison also gives LINK the advantage
AMBCrypto analyzed data from Santiment to see if LINK and MATIC had positive sentiment from market participants. LINK’s weighted sentiment was negative, and has been that way for the past ten days.
The rally from $13.2 to $15.6 in the second half of April saw social engagement skyrocket. It surpassed March highs and set near-new 2024 highs on April 19.
However, social volume has been trending lower over the past six weeks.
Realistic or not, here is LINK’s market cap in BTC terms
It was a similar story in terms of volume for MATIC. Here too, social volume has been declining since the second week of March. The difference, however, was that the weighted sentiment was predominantly negative.
There were only a handful of days above zero, and even then sentiment was weak. The accumulation and social media trends indicate that LINK prices are likely to outperform MATIC in the coming weeks.