<

The recovery of DeFi token such as Chainlink bodes well for DeFi space, which in turn bodes well for crypto market

Token related to the DeFi market have been facing a sharp drop in the past few days. Such as Maker (MKR) with a decrease of 9.5% in the past few days. However, there are tokens that are thriving, like Chainlink (LINK) and Band Protocol (BAND) with a 20% gain in just the last 24 hours after a strong pullback.

The developments of Chainlink and BAND show many good things for token DeFi

This recovery could be a good beacon for the DeFi space, bode well for the rest of the crypto market.

Both LINK and BAND have rallied about 20% higher in the past 24 hours after both faced a strong pullback from the highs they experienced last week. LINK went through a 30% correction while BAND experienced a 40% down adjustment.

Kelvin “Spartan Black” Koh, a partner at the crypto fund The Spartan Group and a former Goldman Sachs partner, said on Aug. 22, amid the move higher in these assets, that this trend bodes well for the DeFi market:

“Oracles led the previous leg of DeFi rally on the way up and then on the way down. If today’s move in $LINK and $BAND is any indication, the next rally for the broader DeFi space should follow.”

It can also be said that the rallying DeFi has a positive influence on the rest of the crypto market.

While it’s hard to say exactly what happened, analysts expect Bitcoin’s price to go higher in late July and early August due to strong maturity in the DeFi sector. This has sparked a wave of interest in the cryptocurrency market.

Both LINK and BAND have the basic principles that show they will keep going. As for Chainlink, the cryptocurrency has seen a spike in daily active addresses, implying an increase in investors in the market.

Blockchain analyst Santiment has reported regarding the chart below:

“$LINK hit an all-time high yesterday in daily active addresses. This came in tandem with an #altcoin decline that sent it down to $13.49. Now back at $16.10, the classic bullish divergence that formed from an ATH in DAA is coming to fruition.”

the-recovery-of-defi-token-such-as-chainlink-bodes-well-for-defi-space1

The same company noted just hours later that BAND has seen a drastic increase in social sentiment, presumably due to some recent partnerships. Increased social media activity on cryptocurrencies often indicates an increase in the number of investors looking to buy the aforementioned asset.

the-recovery-of-defi-token-such-as-chainlink-bodes-well-for-defi-space

Source: CoinMarketCap

At press time, the Chainlink price is hovering around $ 15.04. Meanwhile, BAND is priced at $ 11.97, a slight increase slightly.

Read more:

Follow us on Telegram

Follow us on Twitter

Follow us on Facebook

You might also like