Bitcoin has been soaring as of late, but not so much that it’s been knocking its altcoin cousins to the side. Several smaller coins, including Chainlink (LINK), are doing quite well at the time of writing. LINK has recently hit a new all-time high.
Chainlink Is Bigger Than Ever
Over the last four weeks, the price of LINK has grown by more than 120 percent. Each LINK unit is now trading for roughly $13 each, and things are getting bigger by the minute. The currency has risen by more than 500 percent in the last year alone, according to some analysts.
Michael Anderson – co-founder of Framework Ventures – explained in an interview:
Chainlink is on track to function as [the decentralized web3’s] de facto security layer for all transactions of meaningful value. We believe the value of LINK will track the value of the smart contract platform it is securing, meaning the long-term market cap of LINK will eventually be larger than Ethereum’s current market cap today.
The price of LINK is likely growing due to rising interest in decentralized finance (DeFi). As the coronavirus continues to ravage standard markets and put the Fed to the test, many are looking for ways to hedge their wealth and portfolios against any further inflation or economic problems that have stemmed from the pandemic. The Fed has continued to argue regarding coronavirus relief, yet second stimulus checks have not yet been issued to needy Americans, and many are tired of waiting around for government officials to do their jobs.
Thus, decentralized finance can play a huge role in allowing people to become more financial independent and make their own decisions. Decentralized finance means that it is not controlled by central parties. Choices are more up to those that use the tools at hand, and many Americans and international traders are looking to have a stronger say in how their financial futures play out.
LINK is an Ethereum-based token that boasts some of the same smart contract capabilities as its parent. Anderson continued to say:
As it stands, blockchains are unable to speak in a trustless way with real world data, meaning they require some sort of blockchain abstraction layer that lies between the blockchain and the outside world.
Could It Surpass Ethereum?
At press time, ETH is still considerably larger, boasting a $45 billion market cap to LINK’s mere $5 billion.
Still, some believe the currency is on a route that will eventually take it beyond any mark Ethereum has passed. As it stands, LINK trading is presently outdoing bitcoin trading on popular cryptocurrency exchanges such as Coinbase, and the DeFi market has reached a whopping $11 billion largely due to the massive surge incurred by LINK. The asset has grown by more than 65 percent in the last week alone.