- LINK price has moved higher again today to push its market capitalization to $6 billion
- Chainlink has a devoted group of supporters who are known as LINK marines
- The bulls are still looking to force a sustainable break above the $20 handle
Chainlink (LINK) price rose nearly 5% today to return to the group of the five largest cryptocurrencies in the world by market value. LINK’s price advanced over ninefold year-to-date, with a market cap of around $6 billion.
Fundamental analysis: Link profits from the booming DeFi trend
This year’s wild hype around decentralized finance and DeFi apps played a major part in promoting Chainlink. The DeFi applications allow users to lend digital currencies and speculate through what’s known as ‘yield harvesting’ that often delivers short-term gains of over 100%.
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Its technology provides DeFi apps with price feeds and helps fuel 95% of all public blockchain derivatives. Chainlink’s technology “has quickly become the de facto choice” for DeFi apps that outsource their data feeds, according to crypto research firm Messari.
All of the assets that users hold in all DeFi apps are currently worth around $6.3 billion, which is slightly higher compared to Chainlink’s market value, as reported by coin-hero.de.
“It makes very little sense to see a derivative of the DeFi space be worth more than the value of collateral present in the system,” Nic Carter, co-founder of crypto asset market data provider Coin Metrics.
Chainlink has a devoted group of supporters who are known as LINK marines and who are largely responsible for the cryptocurrency’s recent success. The aim of this group is to flood social networks in a bid to promote LINK.
There are around 50,000 LINK marines, according to one of the members and the owner of the largest private token holder of Chainlink, Michael Anderson.
“What they do is they promote it. This is one of the things that’s unique to the blockchain, where the community is very powerful,” said Anderson.
Technical analysis: LINK gains 5%
Earlier this month, LINK gained nearly 45% in just two days. These gains eventually totaled to 100%, with monthly gains reaching 150% at one moment. Since then, the price action corrected lower to retest the broken resistance, before the bulls broke above the short-term resistance again.
This break may help the LINK buyers to force a return above $18, where an important horizontal resistance line is located. In the mid-term, the bulls will still want to force a sustainable break above the $20 handle.
Chainlink token price rocketed more than ninefold since the start of the year, largely thanks to a group of Chainlink backers known as LINK marines who are faithfully promoting the cryptocurrency on the internet.