By
Temitope Olatunji
April 17th, 2024
Chainlink’s popularity remains on a rise in the Decentralized Finance (DeFi) space. The price of the LINK cryptocurrency has surged over 225% since the beginning of 2020.
Blockchain oracle service provider Chainlink continues to be in the news hitting its new all-time high by surging close to 15% in the last 24 hours. At press time, Chainlink (LINK) is trading 13.47% up at $6.28 with a market cap of $2.2. billion. Since the beginning of 2020, LINK price has appreciated nearly 225% from under $2 to now above $6. The LINK cryptocurrency has climbed the ranks to become the 12th most-valuable cryptocurrency by market cap.
Chainlink’s recent price rally comes after China’s Blockchain Service Network announced its collaboration 10 days back. Chainlink is basically an oracle service provider that helps companies connect their off-chain data to their respective blockchain networks. The benefit of Chainlink is that it supplies data to blockchain-based smart contracts in a completely decentralized manner and from multiple sources. Thus, it also ensures the utmost security and reliability of the blockchain.
The demand for the Chainlink oracles has been recently on a rise with the growing popularity of decentralized finance (DeFi) applications.
A source familiar with the BSN told CoinTelegraph that nearly 135 nodes of the Zhejiang district went live. The source said:
“Many of BSN’s public city nodes are already live but this is very different from the news around public blockchains being integrated into these nodes, which I don’t think is going live until at the end of the month at the earliest.”
LINK Price Is Up amid Surge in Demand for Decentralized Finance
Industry experts think that Chainlink’s rising use in the DeFi space is the reason for its popularity. If you want to learn what’s happening to other cryptocurrencies these days, just follow the link.
Vance Spencer, co-founder of Framework Ventures, one of the largest LINK token holders said:
“We’re attributing this short-term price spike to Chainlink’s scaled usage in the DeFi space. The market cap for DeFi projects have quintupled in the last half year, and most of the ecosystem is now relying on (or planning to rely on) Chainlink for connecting on-chain DeFi smart contracts to off-chain data feeds like commodities and crypto price data.“
Adding further to this view, Framework Ventures another co-founder Michael Anderson said:
“I would also posit that the Chinese government’s decision to integrate Chainlink oracles into their national blockchain service also plays a role in the most recent hype cycle. Long term, we expect Chainlink’s value to continue to appreciate, especially when staking is introduced.”
Simon Peters, crypto market analyst at investment platform eToro said that Chainlink has been making all the right moves by partnering with players in the DeFi space.