- Chainlink price has surged by over 66% from its lowest level this year.
- DeFi protocols like Uniswap and Aave have seen a rebound of activity.
Chainlink price continued rising on Tuesday as demand for decentralized finance (DeFi) tokens soared. LINK soared to a high of $9, which was the highest point since June 10th of this year. It has risen by more than 66% from the lowest level this year, bringing the total market cap to over $4.1 billion.
DeFi resurgence
Chainlink is a leading blockchain project that serves an important role in the industry. It is an oracle network that helps to serve hybrid smart contracts. The goal is to help developers gain access and implement off-chain data and services to their platforms.
The oracle industry is significantly crowded. Some of the top competitors in the sector are Maker, Band Protocol, WinkLink, and Pyth among others. Still, Chainlink has the biggest market share. According to DeFi Llama, there are over 190 DeFi projects in Chainlink. These apps have a total value secured (TVS) of over $15 billion.
Chainlink has been growing its ecosystem recently. For example, they launched a product known as VRF, which provides verifiable source of randomness for smart contract developers. The product is used by developers of Axie Infinity, Aavegotchi, and PancakeSwap.
Learn more about how to buy Chainlink.
Further, Chainlink launched Keepers, a decentralized smart contract automation for developers. Other products in its ecosystem are Proof-of-Reserve and cross-chain communication.
The Chainlink price has done well in the past few days as the DeFi industry has staged a strong recovery. A closer look shows that most DeFi projects like Aave, PancakeSwap, dYdX, and Uniswap have seen a surge in activity recently. According to DeFi Llama, the total value locked (TVL) in DeFi has risen to over $69.1 billion.
This performance is likely because investors believe that the worst has already happened following the collapse of platforms like Celsius and Voyager Digital. Also, LINK price has jumped because of the strong performance of other cryptocurrencies and American equities.
Chainlink price prediction
The four-hour chart shows that the LINK price has been in a strong bullish trend in the past few months. The rally accelerated when the price moved above the important resistance point at $8.2015, which was the highest point on July 30th.
Chainlink is being supported by the 25-day and 50-day moving averages and is slightly above the 78.6% Fibonacci Retracement level. Therefore, the bullish trend will likely continue as bulls target the next key resistance level at $10, which is about 15% above the current level.
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