ChainLink Price Continues to Surge. Short Analysis
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ChainLink (LINK) has seen a rise in price over the weekend, making it one of the best-performing cryptocurrencies on the market. So much so, that ChainLink has surpassed the major cryptocurrency Bitcoin Cash and now sitting in the position of 8th largest coin in the world. The popularity of the currency is easily seen through major cryptocurrency exchange comparison sites such as Cryptowisser, who provide a comprehensive review of all coin networks and offers a depth of detail about each service.
What happened to the ChainLink price?
After what was an exceptional weekend for the currency, the LINK price reached a life-long high of $24, which resulted in the market cap being pushed in excess of $8.89 billion. While they weren’t the only cryptocurrency to feel the benefits of the market movements this weekend, Polkadot’s DOT tokens also rose by 1.18%, they are certainly the ones grabbing the headlines.
ChainLink’s growth means that the gap between LINK and the next biggest crypto asset Litecoin (LTC) has now created a gap of over $500 million between the two.
But, it wasn’t great for all currencies, with major coins such as Bitcoin and Ethereum seeing significant falls in price to $35,000 and $1,200, respectively. With the fall in price for major currencies like Bitcoin, it does beg the question ‘will this last surge last for ChainLink?’
Why have we seen this rapid increase in LINK price?
The price of ChainLink rose by 13% in the last 24 hours, as a result of the rise of its DeFi coin. The DeFi market as a whole has a huge upward swing in the months leading up to Christmas and into the new year, with SUHI and AAVE feeling the best of the situation.
Many traders speculate as to why this may be, but it seems the metric called total value locked, or TVL, has been the main catalyst - a measurement of the capital deployed across DeFi protocols. As of today, the TVL across DeFi autonomous programs is estimated to be around $24 billion and is still increasing.
The reason ChainLink is tied to the growth of DeFi protocols is due to the application of it’s Oracles, which provide vital market data directly to DeFi programs. The more users we see in the DeFi market, the more ChainLink’s Oracles will benefit from the rise of TVL in the DeFi market. So, as long as the trend continues, the rise in the price of LINK coins will also continue to surge.
What is the projection for LINK?
The volatility of the cryptocurrency market makes it a difficult question. But, LINK has surpassed an all-time high for the currency and will search for a new ceiling as traders move to get in on the action.
One thing ChainLink has over many other crypto assets, is that it doesn’t have many competitors - other than Band Protocols BAND coin. The network effect of ChainLink is likely to have an effect on increases in the market value of LINK in the future. For now, LINK users will wait and see what happens to the price in the coming days.