Chainlink Took The Lead: The Token Entered The Top 5 Cryptocurrencies By Market Capitalization
Chainlink continues to amaze: in six months, altcoin has moved from 12th to 5th place in the cryptocurrency rating in terms of market capitalization. What is the secret behind Chainlink’s success?
Chainlink sets new records
2020 could be a landmark year for Chainlink, as altcoin has been showing steady growth in key market parameters lately. In particular, Chainlink’s market capitalization reached $6 billion in August and overtook Bitcoin Cash. This growth allowed Chainlink to become one of the top five crypto assets.
Crypto analysts are convinced that the revival of interest in Chainlink is driven by several factors. An important role played by the bullish rise in the altcoin price: in 24 hours, Chainlink has risen in price by 27%, and today its price is holding at the local top of $17. Although traders predict a LINK rollback back, the open interest of investors in altcoin has grown. The number of crypto-addresses that Chainlink bought in August has reached an all-time high.
Evaluating the dynamics of the LINK price over the past 30 days, traders predict the further movement of the altcoin in an uptrend. The bears can provoke a price correction shortly, but they will not be able to drastically affect the price movement of the altcoin.
DeFi and Chainlink
Analysts note that the increased investor interest in Chainlink is due to the DeFi boom, where Chainlink price oracles are in high demand. LINK is positioned as a DeFi token and used for smart contracts, which plays well in favor of the altcoin.
The Chainlink ecosystem is attractive for developers of blockchain applications due to the availability of tools for defining random generations in smart contracts. It is a unique solution that is not yet available in the ecosystem of other blockchain networks and allows Chainlink to qualitatively detach itself from them.
The news that Chainlink has become the market cap leader among the 100 DeFi tokens has sparked controversy in the crypto community. Some analysts question the possibility of a natural rapid growth in altcoin and call the trading activity of investors to LINK a “bubble”. However, LINK has shown a colossal rally against the backdrop of other altcoins and is set to move on an upward trajectory according to the technical charts.