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ChainLink (LINK) was the only altcoin in the top 30 cryptocurrencies to end yesterday in positive territory. LINK rate increased by 7% due to active purchases from the part of “whales”.
According to the Whale alert service, about 11 wallet addresses are gaining millions of dollars in ChainLink.
The graph below shows that interest in LINK arose from the first days of the new year; in the first five days of January, the token grew by 35%, despite the decline in the overall cryptocurrency market.
The reason for the investment demand for ChainLink is technology. The oracle network ensures reliable and direct delivery of processed data from external sources to blockchain smart contracts.
In 2020, it was ChainLink that ensured the development of DeFi platforms, the pools of which worked on streams of quotes from centralized exchanges, protecting the operation of liquidity pools from manipulation of the rate of coins contained there.
With the development of DEX exchanges and automatic market making (AMM) protocols, the urgent need for oracles has disappeared. Investors began to take more investments in blockchains competing with Ethereum and investments in meme tokens, their growth pushed LINK out of the top 10 to 17th place.
With this shift, the digital asset looks undervalued in the face of a wave of re-introduction into Metaverse protocols. The concept of a virtual world is impossible without reliable user interaction with external sources, which ChainLink will provide.
The development team is already in talks with a number of brands wishing to sell goods and services within the Metaverse. As soon as the first partnerships are completed, LINK’s capitalization will begin to grow by hundreds of percent, repeating its ascent of 2020.
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