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Most alts have had a good run over the last few days. Despite Bitcoin’s lack of support, they have been able to maintain their respective rallies. Consider Chainlink, the market’s 12th largest cryptocurrency.
The aforementioned alt’s market value has increased by more than 119 percent in the last six weeks and has increased by another 12 percent in the last 24 hours. In fact, at the time of publication, LINK was trading at $34.56.
Chainlink: The go-to solution provider
LINK’s rally this time was aided by a confluence of circumstances. For starters, the network’s continuous development was a big motivator. Chainlink’s price feeds are progressively gaining traction as the go-to price oracle solution for determining borrowing rates and computing collateralization ratios.
For instance, SCREAM – the leading lending provider on Fantom, uses Chainlink’s feeds as its primary oracle solution. The network’s price feeds have a proven track of delivering reliable updates on-chain, despite unexpected externalities like exchange downtime, data manipulation attacks and crash outliers.
Further, other smart contract developers can also build diverse DeFi products by leveraging Chainlink’s up-to-date market data. For instance, just by integrating Chainlink’s FX Feed on Ethereum, tamper-proof forex markets can be built and backed by decentralized price data. By providing such services, Chainlink has been able to present itself as a solution-provider in the space.
Ripple effects on the token
Chainlink’s submissions on Github were on the rise and was the overall developmental activity of the network. In fact, Santiment’s latest tweet mentioned the same. Interestingly, ITB’s data pointed-out that the number of Commits, Stars and Open Issues were revolving around the 148.11k, 3.31k and 186 marks of late.
All of this has heightened market participants’ positive narrative. The average transaction size, for example, has been steadily increasing in recent weeks. As shown in the accompanying figure, the rate of recovery of this indicator has been extremely appealing since its decline in June-July. At the time of writing, the same was observed in the $45k to $60k range.
Furthermore, LINK’s volatility decreased dramatically over a three-month period beginning in June, from more than 180 percent to more than 70 percent. Surprisingly, current levels were similar to those in May [74.05 percent ].
The volatility being under control more often than not, aided LINK’s past rallies. Ergo, the current optimal level made the environment even more favorable for LINK’s price to ascend further. Additionally, the alt shares a fairly high correlation with Bitcoin [0.8, to be precise] and is in a relatively good position to benefit from its upcoming rally.
Ergo, keeping in mind the state of the aforementioned metrics, market participants can expect LINK’s price to make rapid northbound strides in the coming days. However, it should be noted, that the alt would test the $43-$46 region, before breaking above $50.