Why Chainlink price bullish momentum could return alongside record capital inflow
The total value locked up in the DeFi apps has violated more than $ 11 billion and is still growing. This record-breaking stream of decentralized financial capital could further drive Chainlink price upside momentum. This is why LINK’s focus on DeFi data could go even higher along with this rapidly spiking statistic.
DeFi cash flows peaked above a record $ 11 billion, the trend showing no signs of slowing down
The DeFi movement has helped bring the crypto market out of the bear market’s gutter and back into the spotlight of the financial world. These new ways to access financial applications without requiring a central authority have enabled all kinds of new ways for crypto investors to maximize the value and return they get from holding.
Profit farming, liquidity pooling, and token swaps have replaced centralized exchanges, alongside traditional lending and borrowing. DeFi makes all of this possible through decentralized applications and exchanges based on Ethereum.
The trend first picked up in early 2020 with Ethereum leading the charge and was later eclipsed by the fortunes made by Aave, Yearn.Finance, SushiSwap, and others.
At least at first. Compound and Maker, who early on dominated the DeFi market in total value locked up, have since succumbed to the popularity of Uniswap. The recent launch of free UNI tokens sealed the deal, propelling the platform to the top dominant liquidity pool in terms of TVL.
While UNI is doing well and the rest of the DeFi space is still strong, there is another cryptocurrency that could benefit from the continued rise of TVLs locked into DeFi apps. . That Altcoin is none other than Chainlink itself.
The total value locked in DeFi reaches $ 11 billion | Source: DeFi Pulse
Why can Chainlink price momentum return with record investment inflows?
DeFi apps and automated market makers like Uniswap require accurate price data so that users always get the current market value of whatever token they are trading.
These applications rely on miracles like Chainlink to ensure there are no discrepancies in the data reporting, and any connections made to it have an exact equivalent in price data.
This technology gave Chainlink a nod from the World Economic Forum in early 2020 and is one of the top reasons why crypto assets have skyrocketed in the two years since the first be molded.
LINKUSDT Daily Bullish Momentum And Possible Bull Flag Pattern | Source: TradingView
And while the whale may be successfully clamoring for Chainlink FOMO, it may only start following these rapidly growing DeFi metrics.
- Blockstack’s Clarity Smart Contracts Is Getting A Data Boost From Chainlink’s Oracle Network
- Bitgo To Be Working With The Chainlink Team To Streamline The Auditability Of WBTC Reserves