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Altcoin & DeFi Market Booming: Chainlink (LINK) Sets New Record-High amid Bitcoin Consolidation

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by Bhushan Akolkar · 3 min read
Altcoin & DeFi Market Booming: Chainlink (LINK) Sets New Record-High amid Bitcoin Consolidation
Photo: Depositphotos

Chainlink has emerged as the best performing crypto over the last week with its price moving past $25 over the last weekend. Also, the massive surge in DEX activity has led to a rally in the DeFi market with the total value locked going past $26.5 billion.

After last week’s sharp correction, BTC has been consolidating majorly at $33,000 levels. While some of the top cryptocurrencies have been showing a laggard move, some lesser-known altcoins have come forward to a strong performance. Over the last weekend, oracle service provider Chainlink (LINK) has delivered a strong performance as well as the DeFi market. The LINK price climbed up above $25 with its market cap moving past $10 billion. With this move, the LINK cryptocurrency has surpassed Litecoin (LTC) to become the seventh most-valued cryptocurrency by market cap.

LINK remains the top-performing cryptocurrency so far in 2021 with more than 100% in just the last 20 days. Also, the number of daily active addresses on the Chainlink network has shot up in recent times.

Chainlink has climbed up the ranks very fast to become one of the top-performing altcoins in recent times. Independent crypto researcher ‘The Oracle Crypto’ writes:

“If we assume that upwards of 80-90% of blockchain applications need oracles to create value, and 80-90% of the applications on each blockchain network choose Chainlink oracles, it’s not hard to envision #Chainlink becoming more valuable than any single blockchain.”

Apart from Chainlink, Ethereum (ETH) is performing pretty well in the altcoin space hitting a new all-time high above $1450. At press time, ETH is trading 5.56% up at a price of $1394 with a market cap of $159 billion.

Chainlink is Up while DeFi Market Is Soaring High as Well

Apart from some altcoins, the DeFi tokens are doing really well. As per data by DeFi Pulse, all of the top ten DeFi tokens have surged anywhere between 4-14%. Maker, Aave, Compound, Uniswap, and Curve Finance have all surged between 5-7%.

The total value locked in DeFi has recently touched a new all-time high of $26.55 billion. Of this, Maker leads the pack with $4.85 billion locked and having a market dominance of more than 18.5%.

Reportedly, the recent rally in the price of DeFi tokens has been largely due to the surge in the DEX activity. Since July 2020, the monthly DEX volumes have shot up significantly as per data from Dune analytics.

Since most of the DeFi tokens are Ethereum-based applications, Fundstrat Global Advisors’ strategist David Grider has predicted a massive surge in ETH price owing to DeFi growth. Speaking to Bloomberg, the analyst said that ETH price can 7x from the current levels moving up to $10,500. Grider further added that Ether is “the best risk/reward investment play in crypto. Blockchain computing may be the future of the cloud. Risks include setbacks for the network upgrade or a crypto bear market”.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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