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Chainlink Mounts Pressure on Bitcoin Cash for 8th Highest Ranked Coin Slot

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Link has moved from a trading price of $12 on January 11, 2021, to a current position of $22 with a market cap of near $9 billion.

Chainlink has cemented its name among the top ten highest-ranked cryptocurrencies by market cap after overtaking Stellar Lumen and Bitcoin Cash to reach the 8th position before slipping back to 9th by a small margin. The oracle-based blockchain protocol grabbed headlines in 2020 after coming from a very low price point to trade in the double-digit price zone. Link has moved from a trading price of $12 on January 11, 2021, to a current position of $22 with a market cap of near $9 billion.

The digital asset is left with just less than $500 million to catch up with Litecoin in the 7th position. In the last 24 hours, there was a 13% surge in price from its previous trading position.

The reason for this breakout can be linked to the massive popularity and growth of the Decentralize Finance (DeFi) ecosystem. The DeFi market has generally shown a positive performance with the likes of SUSHI snd AAVE gaining their fair share. The metric used to measure the total amount of funds or capital circulating within the Defi ecosystem, Total Value Lock (TVL) revealed an estimated amount of $24 billion within the DeFi protocol as of January 18, 2021.

The reflection of the DeFi growth in the price of Chainlink comes from their relationship. Oracles are there to feed DeFi protocols with the important market data needed to run their operations. The likes of Chainlink and Band Protocol are the source of these price data fetched by the likes of exchanges and lending platforms. This means the introduction of more users on the DeFi market benefits the oracles, mostly from the TVL increase of the DeFi market.

Link has surpassed its all-time high and according to analysts, it has found itself in “Price Discovery”. This means the price of the asset has surpassed its all-time high and still searching for a new ceiling.

Link has more prospect to even pull a more surprise by taking advantage of the dominance of Ethereum on the DeFi ecosystem with the network effect of the oracle based blockchain protocol expected to play the magic.

Chainlink also benefits from a less competitive space with just the Band Protocol based on the Cosmos Blockchain Network competing. Over the past few months, Bitcoin and other cryptocurrencies have experienced a massive bull-run.

According to analysts, dormant assets have been on the move with Chainlink being among the top assets and overtaking Bitcoin Cash (at least temporarily) that are constantly moved in the bull-run period.

“Dormant tokens continue to be moved at rapid rates during this #crypto bull run, and dips in our ‘Mean Dollar Invested Age’ metric indicate the increased rate of $BTC, $ETH, $LINK, $LTC, and particularly $REN (which triggered its massive +60% week), ” they said.

Other crypto-related news can be found here.

next Altcoin News, Bitcoin News, Cryptocurrency news, News

John K. Kumi

Excellent John K. Kumi is a cryptocurrency and fintech enthusiast, operations manager of a fintech platform, writer, researcher, and a huge fan of creative writing. With an Economics background, he finds much interest in the invisible factors that causes price change in anything measured with valuation. He has been in the crypto/blockchain space in the last five (5) years. He mostly watches football highlights and movies in his free time.



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