Chainlink’s token trading volume eclipses the one of Bitcoin as retail investors are embracing LINK with open arms making it the most traded token on Coinbase so let’s find out more in the upcoming Chainlink news.
Chainlink’s token trading volume is higher than Bitcoin on Coinbase and the exchange metrics are showing that investors will sit on their tokens and will not enter into profit-taking mode. The token’s valuation is excessive but the shorting of a token in a parabolic trend could be disastrous. Chainlink’s native token hit $14 earlier this week as the volume surpassed that of BTC on COinbase. The rally is believed to have been a huge short squeeze and pushed a few loans on Aave into liquidation.
There are 3 types of crypto funds. Those that benchmark against USD. Those that benchmark against BTC. And those that benchmark against LINK.
— Qiao Wang (@QWQiao) August 8, 2020
The leading smart contract oracle surged past its all-time highs just below $15. On Coinbase the euphoria sent the token’s trading volume above that of market leader-Bitcoin. Across other exchanges, LINK’s trading volume exceeded the one of Ethereum according to Messari, and makes the token the third most traded coin behind BTC and Tether. The trading volume of LINK is backed by some strong inflows of retail investors. The data also suggests that many investors are HODLING despite the recent spike in price. This can be clearly seen on the low levels of the coin on major exchanges even as the token hit new highs.
High exchange inflows show that the investors are moving to platforms where they can sell their assets fast and the outflows suggest the opposite as the investors are moving assets into cold storage wallets. LINK’s soaring value made its investors a lot of profits but it has also spurred other detractors who claim that the altcoin is in a bubble. Valuing the oracle market is quite a difficult task. Looking from a surface view, LINK’s market cap is quite high especially considering the 38% of the total tokens are in supply.
There’s no question that the oracle technology is a critical component for smart contracts and that the price feeds secure more than a billion of dollars in Defi. The chainlink community recently got consumed by the public short-seller Zeus Capital which is an alleged hedge fund claiming that the LINK rally is a result of a pump and dump scheme that is engineered by the core team. The report makes tall claims but fails to support the statements. Shorting is a high-risk trade considering the extent of capital flowing into the token and if the trend starts to reverse, short sellers will be able to recoup their losses.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]
Discussion about this post