Cryptocurrency

Chainlink rates have exploded, the reasons for the rise of LINK and evaluation

Chainlink (LINK) is currently probably the most common DeFi project. The LINK rate has doubled in the last 3 weeks and has reached a new all-time high of 8.48 USD. As a result, the market capitalisation has risen temporarily over USD 2.5 billion and positioned the LINK on the 8 place in CoinMarketCap. Many questions, of course, how could it come to such a sharp price increase, and whether an Investment is worth currently. Therefore, we look at today are the possible reasons for the strong LINK Pump in more detail.

In principle, three main factors currently determine, which led to the LINK rate increase. The human psychology is part of the price determination, high-profile partnerships, and a generally strong momentum in the Altcoin-market. In addition, the increasing volume of trade has fuelled may, in addition, the LINK rate increase.

Price determination in Chainlink

On 6. July, was it then so far. The LINK price surpassed its previous record high of 5.31 USD and in fact, in the Phase of pricing. This Phase leads in most of the markets to FOMO (Fear Of Missing Out). The way to the top is free and has no natural resistance, which could be identified by means of technical chart analysis. This circumstance leads to the fact that a lot of speculators get in and not to miss out of fear of something, almost any price are willing to pay.

Therefore, the currently Chainlink rate could increase to be irrational and to a hard correction make. Alone within the last seven days, after the old all-time high was broken, exploded in price by over 40% and rose from 5.31 USD to 8.48 USD. Currently, the LINK rate is approx. 7,76 USD.

The trading volume of the LINK also rose to a level not observed since April of 2020. You by this time recovered of the Bitcoins rate from its sharp sell-off on approx. 3.750 USD. In this period, the demand for crypto-rose, the currencies of small investors, by leaps and bounds. Some analysts assume that the LINK rate could rise to 10 USD in the next few weeks. This statement, however, is to be treated with caution.

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Partnerships to revive the business

In the course of this year, the Chainlink has closed many high-profile partnerships with companies in the crypto sector. Chainlink is on 8. July a partnership with Nexo received. Nexo is a crypto loan companies with around 800,000 users. Chainlink is supposed to make its Oracle solutions available to the company. Sergey Nazarov, the co-founder of the Chainlink, said:

We are excited to bring the secure and reliable Oracle solutions from Chainlink to the popular credit platform of Nexo, so that the user can check the interest rate and the collateralization rates, which should you get, in the Blockchain independently.

In the last two months, Chainlink with Blockchain has done projects and companies such as Matic Network and Hedera Hashgraph together. In addition, Chainlink was mentioned in a Google blog post with the title Building a hybrid blockchain/cloud applications with Ethereum and Google Cloud. LINK is not a partnership and therefore remains all the rage. Felt every large crypto company is already accepted as a Partner. This brings a lot of attention and thus increases the interest in Chainlink.

Altcoin and DeFi Momentum to bring LINK up

The Altcoin market could show up in the last few weeks, his strong side. During the Bitcoin exchange rate was rather sideways, exploded some of the Altcoins really. This Chainlink is only the tip of the iceberg. Many more projects, especially from the Defined Space, could properly grow.

DeFi is all the rage, and investors are after the next “secret hint”, to make a few 100%. The crypto market is becoming increasingly irrational, and the money is thrown from one to the next project. It is highly reminiscent of 2017 and 2018 in the ICO Hype. The strong Hype and the greed is literally feel and allows for a timely correction more and more likely.

Many are already talking about a Altcoin Season and currently see a LINK, and many other Altcoin projects BTC to outperform. As long as the situation currently holds, and whether further gains with LINK can be achieved, in the stars. It should be noted at this point that the Chainlink has risen in the last 3-4 months of over 450%. Therefore, it could also lead to a sharp correction.

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About the author

Eve Manning

Eve Manning

A native Texan, Eve first started out as a Finance Analyst and later realized that her true passion was not in trading but in writing. She leverages her experience in the Finance industry to analyse and write in-depth news articles covering the Cryptocurrencies, Economy & Finance industries.

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