On July 13, Chainlink (LINK) recovered more than 34% to reach a new all-time high of USD 8.48. Since then, the price has been corrected again to the range of USD 7, but at the time of this writing, the altcoin is making a new attempt to break its recent record high.
LINK has recovered by 167% during 2020 and remains one of the best in the cryptcoin market, but this is not the first time it has obtained this description. In 2019, altcoin recovered 1.481% and, according to CoinMarketCap, the return on investment for those who bought at the first price indicated now exceeds 5.000%.
Chile and Brazil among the main countries where Mekotio malware steals crypto-currencies and banking credentials
Recent data from, Santiment, a blockchain analysis company, found that LINK investors are estimated to have an average profit of 64% and cryptomoney is currently at the top of Santiment’s Emerging Trends list.
Is LINK in a bubble phase?
After such a strong recovery by LINK, investors will start to wonder whether the asset is in a bubble or not. Since Bitcoin’s price plummeted to $3,750 on March 12, several altcoins, especially those related to the DeFi market, have recorded double and triple digit gains.
The price action of LINK, and other crypto currencies, has convinced some investors that a new season of altcoins has begun, but it is important to take a closer look at LINK’s fundamentals to see if the run is driven by FOMO or a combination of more fundamental factors.
Chainlink (LINK) market capitalization outperforms Litecoin and Binance Coin
CoinMetrics noted that several pointers support the price of LINK. For example, the total number of active addresses and the number of transactions have increased, this is synonymous with the number of people who have and, more importantly, the use of LINK has increased.
The number of entities (companies, investors, node operators) getting involved with Chainlink at a deeper level is also increasing. Following Binance’s steps, Huobi Exchange started to run a node to provide its pricing data to the network.
In addition, in June, China’s Blockchain service network was integrated with Chainlink and now runs 135 nodes.
The data says people are trading more with Ether and less with Bitcoin
These nodes (or oracles) are important because they feed information from the outside world into intelligent contracts that allow for multiple applications within the DeFi space. To be an oracle, users must staking out a certain amount of LINK that can be lost as a penalty for providing inaccurate information.
In return for their efforts, oracle operators are rewarded with LINK tokens.