{"id":563450,"date":"2020-08-25T19:52:19","date_gmt":"2020-08-25T16:52:19","guid":{"rendered":"https:\/\/en.ethereumworldnews.com\/?p=563450"},"modified":"2020-08-25T19:57:11","modified_gmt":"2020-08-25T16:57:11","slug":"chainlinks-price-is-correlated-with-eth-gas-cost-crypto-analyst","status":"publish","type":"post","link":"https:\/\/en.ethereumworldnews.com\/chainlinks-price-is-correlated-with-eth-gas-cost-crypto-analyst\/","title":{"rendered":"ChainLink&#8217;s Price is Correlated with ETH Gas Cost &#8211; Crypto Analyst"},"content":{"rendered":"<p><strong>In summary:<\/strong><\/p>\n<ul>\n<li><strong>A recent analysis by Timothy Peterson shows that LINK&#8217;s price is correlated with ETH Gas cost<\/strong><\/li>\n<li><strong>According to his analysis, the value of ChainLink follows the fluctuations of ETH gas fees<\/strong><\/li>\n<li><strong>At the time of writing, Mr. Peterson was yet to expound on his observation<\/strong><\/li>\n<li><strong>One reason behind the correlation could be that activity on the ChainLink network is tied to DeFi activity on the Etheruem network<\/strong><\/li>\n<\/ul>\n<p>Crypto analyst <a href=\"https:\/\/en.ethereumworldnews.com\/chainlink-link-will-be-bigger-than-bitcoin-btc-crypto-analyst\/\">Timothy Peterson<\/a> of Cane Island Alternative Advisors has discovered a correlation between the price of ChainLink (LINK) and the cost to transact on the Ethereum network. According to Mr. Peterson, LINK&#8217;s price is related to the cost to transact on the ETH network. Where Ethereum gas fees go, LINK follows.<\/p>\n<p>Mr. Peterson shared his analysis via the following tweet.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\"><a href=\"https:\/\/twitter.com\/hashtag\/Chainlink?src=hash&amp;ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">#Chainlink<\/a> price is related to <a href=\"https:\/\/twitter.com\/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">$ETH<\/a> Gas Cost.  Where gas goes <a href=\"https:\/\/twitter.com\/search?q=%24LINK&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">$LINK<\/a> usually follows. <a href=\"https:\/\/t.co\/BU7nEmT58L\" rel=\"nofollow\">pic.twitter.com\/BU7nEmT58L<\/a><\/p>\n<p>&mdash; Timothy Peterson (@nsquaredcrypto) <a href=\"https:\/\/twitter.com\/nsquaredcrypto\/status\/1297794151694639105?ref_src=twsrc%5Etfw\" rel=\"nofollow noopener\">August 24, 2020<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h2>What the ETH Gas Price Chart Says<\/h2>\n<p>At the time of writing, Mr. Peterson was yet to expound on his discovery.<\/p>\n<p>However, eyeballing the current 2020 ETH Gas price chart reveals that <a href=\"https:\/\/en.ethereumworldnews.com\/ethereum-gas-usage-hits-all-time-high\/\" target=\"_blank\" rel=\"noopener noreferrer\">Ethereum gas fees<\/a> have constantly increased since the beginning of the year.<\/p>\n<figure id=\"attachment_563451\" aria-describedby=\"caption-attachment-563451\" style=\"width: 1093px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2020\/08\/2020-ETH-Fees.jpg\"><img class=\"wp-image-563451 size-full\" src=\"https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2020\/08\/2020-ETH-Fees.jpg\" alt=\"\" width=\"1093\" height=\"535\" srcset=\"https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2020\/08\/2020-ETH-Fees.jpg 1093w, https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2020\/08\/2020-ETH-Fees-300x147.jpg 300w, https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2020\/08\/2020-ETH-Fees-1024x501.jpg 1024w, https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2020\/08\/2020-ETH-Fees-770x377.jpg 770w, https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2020\/08\/2020-ETH-Fees-240x117.jpg 240w, https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2020\/08\/2020-ETH-Fees-717x351.jpg 717w, https:\/\/en.ethereumworldnews.com\/wp-content\/uploads\/2020\/08\/2020-ETH-Fees-150x73.jpg 150w\" sizes=\"(max-width: 1093px) 100vw, 1093px\" title=\"\"><\/a><figcaption id=\"caption-attachment-563451\" class=\"wp-caption-text\">2020 ETH gas fee chart courtesy of Etherscan.io<\/figcaption><\/figure>\n<p>Also from the chart, it can be safe to ignore the high fees seen on the 10th and 11th of June. Refreshing our memories a bit, on these dates, two transactions shocked the crypto-verse by paying over <a href=\"https:\/\/en.ethereumworldnews.com\/ethereum-address-that-paid-5m-in-eth-fees-belongs-to-a-ponzi-scheme\/\" target=\"_blank\" rel=\"noopener noreferrer\">$5 Million in ETH gas fees<\/a>. Treating these two transactions as anomalies reveals a relatively smooth increment in ETH gas fees.<\/p>\n<h2>ChainLink&#8217;s 2020 Price Growth Due to DeFi on the Ethereum Network<\/h2>\n<p>Comparing the chart with ChainLink&#8217;s meteoritic rise, January 2020 found LINK trading at approximately $1.85. The same LINK hit an all-time high value of around $20 on the 16th of August: a 981% increment in value. At the time of writing, LINK is trading at $14.244 which is still a good price given its January value.<\/p>\n<p>Besides investor confidence and FOMO, the growth of LINK in the crypto markets could be attributed to the fact that majority of the DeFi platforms use ChainLink&#8217;s Oracle network. As DeFi platforms got popular this year, ChainLink&#8217;s oracles <a href=\"https:\/\/en.ethereumworldnews.com\/there-is-no-defi-without-chainlink-link-weiss\/\" target=\"_blank\" rel=\"noopener noreferrer\">were hard at work<\/a> and so were their node operators who get rewarded in LINK.<\/p>\n<p>Therefore, it can be loosely concluded that the correlation observed between the price of LINK and ETH gas cost is very much tied at the hip with <a href=\"https:\/\/en.ethereumworldnews.com\/top-5-defi-projects-for-2020\/\" target=\"_blank\" rel=\"noopener noreferrer\">the DeFi boom<\/a> of 2020.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In summary: A recent analysis by Timothy Peterson shows that LINK&#8217;s price is correlated with ETH Gas cost According to his analysis, the value of ChainLink follows the fluctuations of ETH gas fees At the time of writing, Mr. Peterson was yet to expound on his observation One reason behind the correlation could be that activity on the ChainLink network is tied to DeFi activity on the Etheruem network Crypto analyst Timothy Peterson of Cane Island Alternative Advisors has discovered [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":563455,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[108032,108120],"tags":[5749,1322,4124,108108],"_links":{"self":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/563450"}],"collection":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/comments?post=563450"}],"version-history":[{"count":0,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/posts\/563450\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/media\/563455"}],"wp:attachment":[{"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/media?parent=563450"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/categories?post=563450"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.ethereumworldnews.com\/wp-json\/wp\/v2\/tags?post=563450"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}