BitOffer Institute: LINK explodes above 655%, will DeFi Tokens bring us bull market?
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Since the end of March, LINK has been surging continuously with a total increase of over 655%. Suddenly, it’s market value surpassed EOS and LTC, became the TOP 8 mainstream coin overnight. Thus, many people think the era of AltCoin is coming, and they consider the DeFi Tokens as a sign of the bull market. Many people still regret that they did not buy LINK, do not know whether there is the opportunity to enter the market in the future.
On July 15, data shows Oracle Chainlink soared more than 29 percent to a record high of $8.9 and the market value reach $20.79 billion, which surpassing EOS and Litecoin as the top eight cryptocurrencies by market value.
With the exception of LINK, DeFi tokens such as COMP, BAL, LEND, KNC have all seen a good increase this year. DeFi is one of the big trends of the year, hence it is called as “bull market catalyst”.
LINK is the platform token of Chainlink on the Oracle network. It is a mechanism that writing the external data into the blockchain. Its function is just like an API interface, which can realize the exchange of intelligent contract and external data. It is mainly used to pay the fees of node operators. Its short — term surge is related to the following factors:
1. The new partnership drives LINK’s intrinsic value
So far, ChainLink has partnered with several well-known companies, including Google Cloud and Tezos. On June 23rd, China Blockchain Service Network (BSN) announced that they have introduced the ChainLink Oracle function into their network to create a safe environment for enablig applications from the blockchain to data sources below the chain, Web API and traditional banking system.
On July 8th, ChainLink deployed its Oracle solution in partnership with Nexo, a cryptocurrency lender that purportedly having 800,000 users. On the same day, the decentralized FX liquidity supplier Bancor (BNT) and Ren both chose to use ChainLink’s Oracles for price discovery. More recently, a collaboration between ChainLink and Confux Network announced that the web3.0 frontier is being extended to frontier field technologies such as SMS.
Furthermore, with the LINK’s recent surge, also a number of other organizations have said they will work with ChainLink on several new Oracle solutions. Such corporations drive LINK’s intrinsic value and become one of LINK’s price drivers.
2. The driving of FOMO
Since July 6, LINK’s price has been above its all-time high of $5.31 and on its way to a new high. This attracting many investors who fear of missing out (FOMO). According to the data analysis of the past surge of Altcoins, generally speaking, there is a possibility of the price to continue to rise break through the record high.
As expected, on July 15, LINK soared to $8.9, up by more than 15%, and the trading volume reached a record high since April 2020. This led to an increased demand for LINK from investors, and a large number of funds injected into the market. The scarcity of the market accelerated the price rise of LINK.
3、The abundant community source of LINK
According to data from IntoTheBlock, the cryptocurrency analytics firm, 19% of wallet addresses have held LINK tokens for more than a year, and 16% have held LINK since last month. This data shows a large number of LINK community resources, and its fans and believers are the main reason for LINK’s steady price rise.
At the current rate of growth of Defi tokens such as LINK, COMP, BAL, etc., digital currencies are likely to face a bull market this year, but it could also be just a whipsaw in volatile markets.
Lucian, the chief analyst at BitOffer Exchange, said that investors should be cautious and pay attention to risks as Altcoins are still at the edge of crypto coins. From the perspective of the recent trend, Bitcoin is almost in a sideways state, and there is not much space for both longs and shorts contracts. It is obviously better to invest in dual-currency which launched by BitOffer. Which expires in one day with a fixed yield of 0.5–1% earning without the limitation of ups and downs. However, it is important to note that dual-currency has a limited daily quota, and investors need to snap it up.
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