Posted 1 year ago | by Ben Armstrong
Chainlink Holds Gains as Cryptos Consolidate
While Bitcoin has been able to bounce back from the lows it set over the last month, some smaller tokens are back to near their all time highs. Chainlink is still not at the highs it set earlier this year, but it has been able to claw back most of the losses from the sudden crash that hit the entire crypto world six weeks ago.
Chainlink is currently trading at $3.40 USD, which is within $1 USD of the all time highs it set in March. It is a cryptocurrency that is powered by the Ethereum blockchain, and trades under the symbol LINK.
LINK has added almost 40% to its price over the last week, despite the ongoing volatility in global stock financial markets, and the prolonged shutdown caused by global governments' reactions to COVID-19. While some of the price movement in LINK may be speculative, it has a solid project that is getting lots of support.
Chainlink is Growing Fast
Chainlink is an Ethereum token that powers a decentralized network designed to connect smart contracts to external data sources, its value has soared by 500% over the last year. Smart contracts need to be connected to outside events, which is what Chainlink hopes to do for the crypto world.
The IntoTheBlock crypto analytics platform said that the chainlink network is growing fast, with spikes of over 2,000 new addresses in a single day.
Nicolas Contasti from IntoTheBlock wrote in a Medium post:
"Chainlink has positioned itself as one of the top 15 cryptocurrency projects in the world with a current market cap of approximately $1.11 billion and reported trading volumes of around $720 million over 24 hours...Performance-wise, [chainlink] was having an amazing early 2020 run just until COVID-19 hit world markets, reaching an all-time high of around $4.95 on March 4, which would have meant a year-to-date performance of 178%."
Chainlink's recent gains may be fueled in-part by chainlink developers working with the world's largest bitcoin and cryptocurrency exchange by volume, Binance, on so-called decentralized finance products. Its blockchain is also being used by search giant Google to bridge legacy databases.
More Upside Could be Ahead
While there will undoubtedly be more bad news coming out of the world economy, this may not be a bad thing for crypto prices over the medium term. The global central banks have decided to enter into new territory with their latest set of policy actions, and this could begin to affect the value of fiat currencies.
For the moment, cryptos seem to be treated as risk assets. This market theme is founded on little to nothing from a fundamental viewpoint, which makes it easily changed. When the market wakes up to the power that decentralized, non-political currency has, the prices that we see these days may look like the bargain of a lifetime.