Skip to content

An analyst predicts that the growth of the DeFi ecosystem could push the price of Chainlink (LINK) to $ 32

August 12, 2020

Timothy Peterson, says a chartered alternative investment analyst The Chainlink (LINK) token could be worth $ 32 by the end of 2020. Peterson’s comments come just days after him LINK increased its price by 88% in two weeks.

It is believed that The explosive growth of the DeFi (decentralized finance) market is one of the main drivers behind the demand for oracles. such as Chainlink and Band Protocol (BAND) and Defi Pulse data show that the total locked in DeFi logs has quadrupled since June.

Chainlink has upside potential, but its growth comes at a price

In the long run, Peterson said that The network growth and historical deviations from Chainlink suggest a more significant increase in LINK. but warned that Prices above $ 32 may not be sustainable. Peterson said::

“I did a quick analysis of the Chainlink network’s growth rate and historical price variances put LINK at $ 32 by the end of the year, but that price would not be sustainable. Investors who buy at a high level run the risk of losing 50% or more of their investment. Most of the growth has already occurred. “

An analyst predicts that the growth of the DeFi ecosystem could push the price of Chainlink (LINK) to $ 32An analyst predicts that the growth of the DeFi ecosystem could push the price of Chainlink (LINK) to $ 32

The DeFi market has grown rapidly in recent months. This has resulted in most of the DeFi projects increasing their ratings. Despite this, There is a significant valuation gap between the main and the smallest network.

For example, Chainlink is currently valued at $ 4.475 million. Vice versa, Tape log, the second largest oracle project on the market, It has a valuation of USD 257 million.

Venture capitalists like the co-founder of Spartan black, Kelvin Koh, You also thought about the valuation gap. Koh said that in time Competitive platforms like Band Protocol could catch up.

If the price of LINK exceeds $ 30, the network’s market cap would be more than $ 10 billion. It remains uncertain whether Chainlink has enough fundamentals, user activity, and other metrics to support a market cap of $ 10 billion by the end of this year.

The feeling is still positive

According to the market data from Santiment, Chainlink, and Band Protocol have seen the highest levels of social activity in the past few days. Researcher they said::

“BAND and LINK have been the mainstays of our emerging trends platform for the past two days, which measures the highest percentage increase in social discourse related to crypto assets and their issues.”

The growing interest in Chainlink and other oracle projects This was also evident in Google Trends. However, compared to major cryptocurrencies like Bitcoin, interest is less widespread.

Google Trends data comparison for Bitcoin and Chainlink

Google Trends data comparison for Bitcoin and Chainlink. Source: Google

Michael van de Poppe, A full time trader on the Amsterdam Stock Exchange suggested this The price of LINK could rise in the short term. Van de Poppe said::

“The level is maintained, great. Break out of $ 13- $ 13.25 and I think we’ll test the highs again. “

Short term, Most major cryptocurrencies are at risk of retreat after gold and silver prices fell sharply.

As an an example, Bitcoin (BTC) price fell more than 4% in 18 hours When his momentum slackened and Today, many altcoins are also recording double-digit losses.

Receive Breaking News !

Enable Notifications    Ok No thanks