A combination of network growth, profitable addresses, and incoming high-value transactions indicate that a new wave of bullish momentum is on the table for Chainlink. The decentralized oracle solution reached the highest price it had since September. Now, fundamental analysis reveals that this may be only the start for LINK’s growth.
In a tweet shared by IntoTheBlock, the blockchain analytics firm discovered that Chainlink is in the very first stages of new bullish momentum. Within their platform, it is noted that there is a rising trend of network growth. We see higher transaction activity coupled with a new flow of money in November. In terms of profitability, up to 89% of holders remain profitable at current prices.
Based on the profitable addresses, a new flow of money, and higher network growth, the platform’s algorithm deems Chainlink to be bullish.
After Aave, Chainlink is the most profitable cryptocurrency this year. In the past year, LINK grew 600% and reached a new ATH at $19. At the start of 2020, one token only cost $1.73. in 2019, the digital asset managed to only reach an ATH of $3.41. Before that moment, it struggled for years and ranged around 40 cents. Nevertheless, the situation finally changed for the better.
As the leading decentralized oracle network, Chainlink supports a majority of today’s blockchain protocols. By solving the oracle problem, the team provides decentralized, transparent, and tamper-proof data to all its partners.
How did Chainlink establish its bullish momentum?
Today, developers utilize Chainlink’s decentralized oracles and price feeds to create their own applications. For example, if they wish to integrate another project or cryptocurrency, they would have to use Chainlink. By doing so, they have access to an oracle network that reports accurate prices. On that account, it is possible to create DeFi dApps and financial instruments without having to fully integrate another network.
It is possible to seamlessly connect to any data source using a simple API interface. The API connects two networks together and allows them to communicate information to each other. In that way, Chainlink ensures a trustless and automatized system through which data can be exchanged and applied.
Numerous industry-leading teams employ Chainlink for numerous use cases. These use cases range from derivatives, lending & borrowing, healthcare, weather data, to extremely complex synthetic assets. So far, the project partnered with AAVE, Synthetix, Yearn Finance, Google, Ampleforth, Celsius, and many others.
In 2020, Chainlink received its heightened appraisal by supporting the decentralized finance market. The decentralized oracle tracks billions of dollars within the market, roughly a third of all collateral stored on DeFi. Thus, it proved itself as a leading solution and as the only project capable of connecting blockchain networks in a decentralized way.
As Defiye previously reported, Chainlink supported its new bullish momentum through a series of products and partnerships. On November 19, Chainlink partnered with SynLev to support synthetic assets. Two weeks before that, the team released a new price feed for the OXT/USD trading pair. Furthermore, the team has also published a blog post at the start of the month to highlight the importance of transparency in DeFi.