Chainlink (LINK) Surges 39.5% to a New All-Time High — Here’s Why

Published at: July 13, 2020

Today the price of Chainlink (LINK) soared by more than 34% to reach a new all-time high at $8.48 and also notch a market capitalization of $2.5 billion.

Three key factors that likely pushed the price of LINK to a new record high were: high-profile partnerships, price discovery, and the strong momentum that currently drives the altcoin market.

Crypto market weekly price chart. Source: Coin360

Price discovery drives LINK price higher

On July 6, the price of LINK surpassed its previous record high at $5.31 and officially entered a price discovery phase, which typically leads to a “fear of missing out” rally among investors.

Once price discovery occurs and the asset begins to rally to a new peak, the probability of an extended uptrend rises.

Within seven days of LINK recording a new historic high, its price rallied by more than 40% from $5.31 to $8.48.

LINK’s trading volume also rose to levels unseen since April 2020, when the price of Bitcoin (BTC) was recovering from an intense drop to $3,750. At the time, demand for cryptocurrencies from retail investors on Coinbase was surging.

In regards to LINK’s momentum, Cointelegraph contributor Michael van de Poppe said:

“Personal target here at $7.10-7.25 reached since the tweets earlier. Such a beast. Just a matter of time until it reaches the next one at $10. I think that's doable this year.”

LINK-USDT reaches a new all-time high. Source: TradingView

New high profile partnerships

Throughout 2020, Chainlink has secured several high-profile partnerships with companies within the cryptocurrency sector.

On July 8, Chainlink partnered with Nexo, a crypto lender with reportedly 800,000 users, to deploy its oracle solutions. Chainlink co-founder Sergey Nazarov said:

“We’re excited to bring Chainlink’s secure and reliable oracle solutions to Nexo’s popular lending platform to enable users to independently verify on-chain the interest and collateralization rates they should receive.”

In the past two months, Chainlink has collaborated with blockchain projects and companies including Hedera Hashgraph and Matic Network. Chainlink was also mentioned in a blog post released by Google entitled Building hybrid blockchain/cloud applications with Ethereum and Google Cloud.

Altcoin market continues to gain momentum

Following Ether’s (ETH) rally, the altcoin market as a whole has started to recover. Bitcoin’s stability has provided a strong foundation for altcoins to rebound after a year of stagnation.

Ether price rose from $175 to $240 since the first week of May and it seems that the gradual recovery in it’s price has further enabled the altcoin market to retain its momentum.

Bitcoin dominance slightly decreased in the week. Source: CoinMarketCap.com

Over the past 7-days Bitcoin’s dominance fell from 64.15% to 62.45%, which shows that altcoins have increased in market capitalization.

Earlier this month, traders, like Peter Brandt, forecast that an altcoin season could occur at some point in 2020. The strong performances by leading altcoins, including Cardano (ADA), Chainlink, Tezos (XTZ), and Compound (COMP), has led the sentiment around the crypto market to improve.

Tags
Blockchain
Markets
Chainlink
Related Posts
Oracle-focused tokens rally as DeFi searches for trusted data providers
To the observant cryptocurrency enthusiast, the sight of multiple large-cap tokens more than tripling their value since November 2020 is a healthy sign that a bull market cycle is underway. Aside from a breakout in the price of Bitcoin (BTC), Ether (ETH) and altcoins, every bull market in the crypto sector is defined by one or two key themes that emerge as the driving force of market enthusiasm. In 2016-2017 there were ICOs, the growing popularity of collectibles like CryptoKitties and the widely held belief that blockchain was a solution to every problem in the world. In 2021 it’s clear …
Blockchain / Feb. 14, 2021
Growing list of billion-dollar crypto ‘unicorns’ suggest the best is yet to come
In the traditional investing world ‘unicorn’ is a term used by venture capitalists to describe a privately held startup valued at more than $1 billion. Typically these startups have strong fundamentals and oftentimes a first-mover advantage that helps them rapidly rise in value to become prized investment opportunities for yield-seeking funds. Some of the best-known unicorns include Elon Musk’s SpaceX, a private rocket and spacecraft manufacturer with a valuation of $46 billion, and Coinbase, the largest U.S.-based cryptocurrency exchange with a current valuation of $8 billion. While the world's attention has been focused on the Coronavirus pandemic, the outcome of …
Technology / Feb. 6, 2021
Record Ethereum Network Use and Gas Fees Pose Risk to DeFi Expansion
The number of Ethereum network transactions more than doubled in 2020 and is now virtually identical to the January 2018 all-time high. As shown on the chart below, the number of transactions doubled in the past six months to stand at 1.23 million per day. Ethereum 7-day average daily transactions. Source: CoinMetrics This situation might seem very bullish at first, but one must remember both EOS and Tron (TRX) started as ERC-20 tokens before launching their own mainnet and running fully independent blockchains. A similar chain migration is happening on Tether’s USDT, a stablecoin which recently secured a $12 billion …
Blockchain / Aug. 15, 2020
Oracle tokens turn bullish as blockchain projects focus on interoperability
2022 looks to be a transformative year for the cryptocurrency ecosystem as the focus on interoperability between siloed blockchain networks comes to the forefront and a multitude of projects announce plans to interconnect their platforms with other protocols. One sector of the crypto ecosystem that will play a vital role in ensuring smooth communication and interaction between networks are oracles projects like Chainlink (LINK) and Band Protocol (BAND). Oracles relay data in a consistent, secure and decentralized manner and this is key to providing price feeds for the DeFi sector and for centralized exchanges. As shown in the graphic above, …
Adoption / Jan. 6, 2022
Ocean Protocol, Helium and Chainlink post monthly gains while Bitcoin price consolidates
Positive price movements during bear markets are noteworthy primarily because they can help identify projects that have a good chance of surviving until the next bull cycle . Generally, price action in June has been stagnant for a majority of the crypto market because traders are nervous about Bitcoin’s (BTC) oscillation around the $30,000 support level, but there have been a few strong performers. Data from Cointelegraph Markets Pro and TradingView shows that three of the biggest gainers in the month of June have been Chainlink (LINK), Ocean Protocol (OCEAN) and Helium (HNT). Chainlink introduces staking The Chainlink protocol is …
Adoption / June 9, 2022