Since the end of March, LINK has risen continuously, with a total increase of over 655%. Overnight, its market value surpassed EOS, and LTC entered the top eight mainstream currencies. Therefore, many people think that the spring of altcoins is here, and they regard the DeFi series of tokens as the light of the bull market. Many people are still sighing: I regret not buying LINK. I don't know if I have a chance to get on the car in the future?
On July 15, according to data from the trading platform, the price of the oracle Chainlink token LINK soared by more than 29%, hitting a record high, hitting a maximum of US$8.9, with a market value of US$20.79 billion, surpassing EOS and Litecoin as the market value. The top 8 cryptocurrencies.
In addition to LINK, the prices of DeFi project tokens such as COMP, BAL, LEND, and KNC have all shown good increases this year. It has become one of the major trends this year, so DeFi has been dubbed the mission and expectations of the "bull market catalyst".
LINK is the platform token of Chainlink, the oracle network. It is a mechanism to write external data into the blockchain. The function is like an API interface. It can realize the intercommunication between smart contracts and external data. It is mainly used to pay for node operators. The reason why it can usher in a short time The surge is related to the following factors:
1. The new partnership drives the intrinsic value of LINK
So far, ChainLink has established cooperation with many well-known companies, including Google Cloud and Tezos. On June 23, China's Blockchain Service Network (BSN) announced the introduction of ChainLink oracle function into its network, hoping to use the ChainLink blockchain oracle solution to securely connect applications on the blockchain to off-chain data Source, Web API and traditional bank payment system.
On July 8, ChainLink partnered with Nexo (a cryptocurrency lending institution with 800,000 users) to deploy its oracle solution. On the same day, both Bancor (BNT) and Ren (Ren), the decentralized foreign exchange liquidity providers, chose to use ChainLink's oracles for price discovery. Recently, the cooperation between ChainLink and Confux Network claimed to extend the frontier of web3.0 to include old technologies such as SMS.
With the rapid rise of LINK in recent times, many institutions have expressed that they will cooperate with ChainLink to develop several new oracle solutions. These new cooperation drive the intrinsic value of LINK and become the driver of the price increase of LINK. Force one.
2. The promotion of FOMO emotions
Since July 6th, the price of LINK has exceeded the all-time high of $5.31 and is constantly creating new highs. This has attracted the attention of many investment institutions and retail investors, and has stirred up their FOMO (fear of missing out) emotions. According to the data analysis of past altcoins' surge, it is very likely that altcoins generally break new historical highs and their prices will continue to rise.
Sure enough, at 24:00 on July 15th, LINK rose to a maximum of 8.9 US dollars, an increase of more than 15%, and the transaction volume reached a record high since April 2020. This led to an increase in the demand for LINK from retail investors in the currency circle, a large amount of funds entered, and the market Scarcity accelerated the price increase of LINK.
3. Strong LINK community resources
According to data from cryptocurrency analysis company IntoTheBlock, as of now, 19% of addresses have held LINK tokens for more than a year. Since last month, 16% of addresses have held LINK. These data indicate that LINK’s community resources are very powerful. A large number of die-hard fans and believers are the main reason for the steady increase in LINK's price.
According to the current growth rate of Defi tokens such as LINK, COMP, and BAL, the digital currency is likely to usher in a bull market this year, but it may also be just a quick wash.
Lucian, the chief analyst of BitOffer Exchange, believes that no matter how fierce the altcoin rises, it will still be an altcoin. Investors must be more cautious and pay attention to risks. From the recent trend, Bitcoin is almost in a sideways state, and there is not much room for long and short contracts. Obviously, it is better to buy dual currency wealth management launched by BitOffer, buy today, and expire tomorrow, fixed 0.5-1% per day Income, whether it goes up, down, or sideways, can make steady profits. However, it should be noted that the daily quota of dual-currency financial management is limited, and investors need to snap up purchases.