Chainlink’s LINK is by far the best performing asset among the top 10 cryptocurrencies by market cap. The altcoin has showcased a healthy rise throughout 2020 with a massive jump over the last few weeks. Chainlink has risen more than 110 percent over the past month, rising from $9.80 to $15.48 on the 12th of August.
Over the last 24 hours, the token has pumped 22 percent to hit a new 2020 high. The token also climbed up the ranks swiftly and is now sitting at the 5th spot, surpassing popular names like Bitcoin Cash, Cardano, BSV, and Litecoin along the way.
According to a report from the cryptoanalysis platform intotheblock, 100% of wallets holding LINK are currently in profit.
What’s interesting is the fact that the token has one of the lowest correlation factors with Bitcoin according to data from Skew. The altcoin seems to have set off on an independent trend.
The token even surpassed Bitcoin’s trading volume on Coinbase on August 9, registering over 500% in gains over the year.
The rally looks bullish
LINK slightly traded in an overbought area that saw the 17 percent correction in between August 11 and 12. This was one of the crucial moves as the correction also marked the $11 level as solid support.
According to crypto analyst Michaël van de Poppe, it was a “good bounce” that has pushed the token to test the $14 level next.
Trader Josh Rager expressed his optimism over the token’s recent move and doubled down on LINK, highlighting that every time LINK undergoes a correction, it “usually outperforms every other asset on the bounce”.
“Higher close on 4-hr chart with a new all-time high just above I expect LINK to see new highs soon but many will keep watching in disbelief,“ he added.
Over the short-term, analyst Koroush AK expects LINK to hit $16 today. He Tweeted:
Further solidifying LINK’s move is the growing demand for DeFi assets. Traders have increased their bids for LINK, COMP, MKR, and other decentralized finance tokens after Yam Finance was launched.
Adding to this, 50 percent of LINK’s circulating supply is held in smart contracts, surpassing Tether and Ethereum. Michael Anderson, co-founder of Framework Ventures believes the LINK rally was partly fuelled by the utilization of the project in terms of scaling the DeFi space.
Meanwhile, Staked, a popular platform that helps institutional investors reliably and securely compound their crypto via staking and lending has joined Chainlink as one of its oracle nodes to further enhance decentralization and security of Chainlink’s network.
The node is currently supplying data feeds to more than 25 Ethereum-based DeFi apps.
At the time of writing, LINK is trading at $12.50, up 21.5 percent on the daily. The overall sentiment is heavily one-sided towards the bulls, and traders expect the token to post new highs.