Chainlink has had a good year so far. The digital coin’s performance this year has been so immense that, many crypto experts have called it one of the most profitable assets in the cryptocurrency market alongside Bitcoin, the biggest digital coin.
LINK, Chainlink’s native cryptocurrency has seen more than a 200% surge in value since the start of the year. The digital coin, since its yearly-low mid-March, has gained more than 180% value, beating many top coins in the market including Ethereum and Bitcoin.
Chainlink’s superb performance in the first quarter of the year also saw the digital coin achieve more daily volume than Ripple’s XRP. This feat brought some attention to the digital coin since it is clearly a no match for XRP when there are matched up in terms of the size and breadth of their relative communities. Ripple’s XRP has also been amongst the top three cryptocurrencies in terms of daily trade volume, alongside Bitcoin and Ethereum, the more reason why Chainlink caught the eyes of many experts and investors.
According to ParaFi Capital, on April 18, the LINK to the dollar exchange rate rose at $3.84 whilst Bitcoin was down 0.21% within the same period. The demand for LINK subsequently increased and this was after the US-based venture capital firm publicly announced that it was backing the digital project. ParaFi Capital also revealed that it was backing the DeFi platform MakerDAO, with a proposition that could see MakerDAO collateralize DAI, its failing stablecoin, using Chainklink’s native cryptocurrency.
MakerDAO is the most successful dApp in Ethereum’s emerging DeFi arena. The project has gained some grounds due to its option which allows its users to use crypto collateral to obtain automated loans in its stablecoin, Dai. According to ParaFi Capital, bringing on Chainlink’s native token, LINK as an approved collateral type within the Maker system, was going to help raise the demand for Dai as well as maintaining its USD-peg. The partnership with ParaFi capital has also led to a rise in the number of users on the Chainlink network. Chainlink recorded a surge of over 1,400 new wallets daily in April, another indicator that could cause a rise in the price of the digital coin.
Chainlink’s performance in the first quarter also saw its price move above the 200 daily moving average, which was its long-term moving average. The surge above the 200 daily MA, according to crypto experts was a “place of LINK token accumulation” and increases the possibility of the digital coin retesting the $4.81 level.
Chainlink followed its hot streak and stellar performance in the first quarter of the year with even more developments, signaling experts, and investors that, it might not be done yet. Data analysis from Messari, a cryptocurrency analytics site showed that, with a sum of $66 million, LINK bagged the fourth-highest intraday real volume of any digital currency in the crypto market, a feat achieved by only a few digital projects in the crypto market. Only Bitcoin, Ethereum, and Tether’s USDT stablecoin put up daily performances, spectacular than that of Chainlink’s native coin within that time frame.
LINK’s success this year has been mainly attributed to the passion and determination of the team behind it, which has seen the project attract attention, a spread in network effects, and big partnerships.