Chainlink price: Slump witnessed in line with other premier altcoins, coming weeks seem crucial
Chainlink (LINK) has showcased steady growth since its inception back in 2018, even surging during periods when the market as a whole was in decline.
- Though not completely de-coupled, LINK has historically shown lower levels of correlation with Bitcoin during price swings as compared to Ether and Litecoin.
- Over the course of the last year, ChainLink has exhibited gains in excess of 530%.
- ChainLink's increasing popularity comes in the wake of the platform being adopted by an increasing number of mainstream firms, crypto dApps.
Much like the rest of the market, the last 24 hours saw Chainlink (LINK) suffer a heavy price correction that resulted in the top-10 crypto dropping around 7% of its value. However, despite this recent slump, LINK has been able to showcase a monthly gain of 17.6%.
From a purely technical standpoint, Chainlink is one of the more interesting alt-coins in the market today because while most other alts — namely Ether, Litecoin, etc — tend to exhibit a massive correlation with Bitcoin during the latter's upward/downward movements, Chainlink seems to have somewhat broken away from that trend.
On the subject, Jeroen van Lange, host of the YouTube channel The Blockchain Today, told Finder that the value of Chainlink has repeatedly showcased signs of being independent of BTC monetarily, which is quite unique as well as one of the reasons why a lot of investors seem to be interested in LINK, especially as the market seems to be in the midst of a full-on bull season, despite yesterdays correction. He further added:
"Since its launch Chainlink has been in a strong uptrend. As well as in the USD and BTC comparative. This essentially means that even though Bitcoin was in a downtrend in 2018 right before the huge drop from 6K to 3K and after we topped out in 2019 at a price of $13.800, Bitcoin entered a multi-month downtrend. Chainlink during both of these periods was able to outperform Bitcoin."
This trend reversed recently, as Chainlink dropped back from its $20 peak and Bitcoin ascended to its own new all time highs, so it's possible that coming weeks will serve as a crucial indication of whether or not Chainlink can resume its trend of outperformance.
Chainlink priced against Bitcoin (LINKBTC)
Chainlink's market adoption continues with full gusto
On Jan 7. major South Korean VR content distributor DVision Network released a statement announcing its decision to integrate Chainlink's blockchain oracle solution into its ecosystem. As a result, DVision Network users will be able to employ Chainlink's Decentralized Price Feeds in order to accurately estimate the cost of various Non-Fungible Token (NFT) items in its VR marketplace.
Furthermore, the collaboration will also allow the South Korean firm to make use of Chainlink's Verifiable Random Function (VRF) which seeks to enable the secure, provably-fair random generation and distribution of on-chain rewards.
Similarly, the following day, QuiverX Capital, a decentralized crowdfunding platform, too announced its decision to integrate ChainLink's customized proof-of-reserve oracle solution so as to create a transparent bookkeeping model where anyone with internet access can, with the touch of a button, verify a token's value based on its historical revenue.
Lastly, during the early hours of Jan 12, blockchain gaming dApps like Axie Infinity (which is currently the number one game on the Ethereum ecosystem), EtherLegends, Darwinia Network's Evolution Land announced their decision to integrate Chainlink's VRF module into their frameworks so as to generate a secure source of randomness for their various in-game rewards, characters, etc.
At the tail end of last year Chainlink was adding dozens of new integrations each month, and with the exploding DeFi ecosystem and the advent of new Chainlink-powered solutions such as Offchain Labs' Arbitrum, it seems likely that Chainlink will continue to gain traction. How the market will respond, though, is unclear.
Disclosure: The author owns a range of cryptocurrencies at the time of writing