Trading activity has shifted away from Bitcoin and toward alternative cryptocurrencies in recent weeks. Chainlink (LINK), an Oracle service provider, has recently emerged as the industry leader, favoured by crypto traders.

Recent Released: Cardano ADA Hits Critical Level, Here’s Its Future

Chainlink has been trading in an accumulation zone between $6 and $8 a share for some time now. According to Santiment, an on-chain data provider, investors have been making a move as the social dominance of Chainlink increases.

According to Santiment, Chainlink’s market cap fell by around 5% on Friday before recovering right before the closing of trade (UTC GMT). There were three increases in $LINK’s social dominance, suggesting trading activity. The most recent occurrence happened when prices started to rise again.

Consensus Opinions on Chainlink

Famous cryptocurrency analyst and ITC creator Benjamin Cowen predicted that Chainlink would perform better than Bitcoin. He went on to say that LINK is in an accumulating period during the present down market and will do well once the bull market returns.

The underlying changes in the Chainlink ecosystem are also very significant. Several initiatives have selected Chainlink as their go-to for enabling smart contracts and safe data sharing.

In order to facilitate the testing of cross-chain applications, Chainlink recently teamed with the world’s largest interbank payments system, SWIFT, to supply price feeds. According to Cowen, “Chainlink kind of works as a backbone for a number of cryptocurrencies.”

He elaborated, “One of the reasons why I think it hasn’t done as well recently, obviously, is not necessarily because Chainlink isn’t a great project, it’s more so just because of the overall market risk and the fact that we are in fact in a bear market, but I do think the fundamentals of Chainlink shine through a bit better in a bear market than they sometimes do in a bull market.”

See also  Chainlink (LINK) Price Up 24%; On-Chain Data Indicates Bullish Sentiment Ahead

DonAlt, a well-known trader, has said that LINK typically does well even in a down market.

We have LINK outperform the overall market in 2018, 2019, and 2020, he said in a recent interview. LINK was rising, and it seems like a reasonable story to follow, seeing as how it’s outperformed in recent weeks… I still see potential for LINK to return.

Source: Google Trend

By Vil Joe

A writer and editor based out of San Francisco, Vil has worked for The Wirecutter, PCWorld, MaximumPC and TechHive. Her work has also appeared on InfoWorld, MacWorld, Details, Apartment Therapy and Broke-Ass Stuart. In her spare time, she takes too many pictures of her cats, watches too much CSI and obsesses over her bullet journal.

Leave a Reply

Your email address will not be published. Required fields are marked *