This top cryptocurrency barely flinched as $40 billion got wiped off the market ๐จ This article is 4 years old...
This top cryptocurrency barely flinched as $40 billion got wiped off the market
2 min read
Updated: Mar. 9, 2020 at 5:11 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
From March 8 to 10, within a 48-hour span, the Bitcoin price plummeted by 13 percent in a severe short-term pullback. As the cryptocurrency market crashed overnight, one asset outperformed BTC and other major altcoins.
In the same period, Chainlink (LINK) rose ten percent against Bitcoin, performing strongly against the entire cryptocurrency market.
Why has Chainlink (LINK) been outperforming major cryptocurrencies?
As said by Aaron Gong, vice president of Binance Futures, LINK has consistently seen record high volumes on the exchange ever since Google Cloud mentioned Chainlink in mid-June 2019 as a viable oracle smart contracts protocol.
Google Cloud said in a report:
“In this blog post, we describe a few applications of making internet-hosted data available inside an immutable public blockchain: placing BigQuery data available on-chain using a Chainlink oracle smart contract.”
Since then, the demand for LINK on Binance and other top exchanges started to increase, leading to the establishment of a strong community and high volumes across various trading pairs.
On March 9, when the Bitcoin price started to drop rapidly and the cryptocurrency market saw peak volatility in 2020, Gong noted that Ethereum and LINK recorded all-time high volume on Binance Futures.
“When markets are moving, we also had ATH volume on ETH and LINK,” said Gong.
Last week, Gong further emphasized that several altcoins have outperformed Bitcoin year-to-date, with Chainlink front-running both Bitcoin and the altcoin market.
He said:
“Altcoins have outperformed BTC YTD, front running by LINK. It certainly also grows rapidly on Binance Futures, now is accounting for 10% of the total volume.”
The high volume of LINK and the consistently high demand for the cryptocurrency were the two main factors behind its relative stability throughout the past 48 hours, when more than $40 billion were wiped out of the crypto market.
LINK was one of the few cryptocurrencies to perform better than Bitcoin in the overnight pullback, with Ethereum dropping by more than 8 percent against BTC in the same period.
Can LINK performance be sustained?
LINK has shown solid technicals to date; it is the only cryptocurrency alongside Tezos to enter price discovery in 2020, supplemented with record high volumes.
The term price discovery refers to when an asset spikes to a new record high and begins to search for its next peak. In a price discovery process, since there is no previous resistance levels to mark a potential ceiling, the rally of the asset tends to overextend.
On lower time frames, LINK topped out at $4.97, correcting to sub-$4 for the second time in March.
To back the strong technical factors of the cryptocurrency, significant improvements in the fundamentals of Chainlink and the base blockchain layer will have to compliment the rising price trend of LINK.
Whether LINK will be able to solidify its position as the eleventh most valuable cryptocurrency in the global market over the long run remains to be seen, competing against the likes of Cardano, Stellar, and UNUS SED LEO.
Chainlink Market Data
At the time of press 5:11 pm UTC on Mar. 9, 2020, Chainlink is ranked #11 by market cap and the price is down 5.36% over the past 24 hours. Chainlink has a market capitalization of $1.37 billion with a 24-hour trading volume of $763.11 million. Learn more about Chainlink ›
Crypto Market Summary
At the time of press 5:11 pm UTC on Mar. 9, 2020, the total crypto market is valued at at $222.62 billion with a 24-hour volume of $176.18 billion. Bitcoin dominance is currently at 63.99%. Learn more about the crypto market ›
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Chainlink is a decentralized oracle network that connects smart contracts on the blockchain to real-world data.
