Cryptocurrency prices have slid across the board today, but the market always holds surprises. One leading altcoin in particular has managed to avoid the crash unscathed.
Market Downturn Erased 25% Off Altcoins in a Week
ChainLink (LINK) not only remained one of the few assets in the green, but actually continued on a small hike as other assets still sank lower. LINK is still down more than 9% on a weekly basis, but the loss is also narrower in comparison to the corrections in most other leading altcoins.
As Bitcoin (BTC) continued to tumble below $8,700, altcoins decreased across the board too. But LINK has a tradition of defying markets, staging significant short-term gains based on highly active trading. LINK also rises on rumors of partnerships and increased usage of the ChainLink oracles.
The latest news that triggered a price hike was related to a potential partnership of ChainLink and Tezos (XTZ).
— Chainlink Alert (@chainlink_alert) February 26, 2020
In the short term, this led LINK prices to $3.97, and above 45,000 Satoshi. LINK trading is also near peak levels, above $450 million in 24 hours. LINK prices also get a boost from a highly active community, expecting an even higher valuation. The asset also gains momentum based on its propensity to go against the market. LINK gained more attention this Friday as it counteracted the falling trend.
#Chainlink is receiving tremendous exposure during this $BTC, $ETH retrace. It’s performing with the lights on. There will be a sizable increase in wallets. More excited evangelists. More tweets. More buying, less selling. Welcome All To The Brotherhoood. $LINK
— John Cioffoletti (@JohnCioffoletti) February 27, 2020
The Chainlink project has additionally expanded its influence by providing oracle services for multiple protocols. The Polkadot protocol has recently announced a partnership with Chainlink, which is emerging as the leading oracle service for Ethereum-based protocols.
LINK Derivatives Market Boosted Price Action
LINK is still far from its peak at around $4.80, but has shown its capabilities to recover closer to the top of the range. For now, LINK is the sole gainer, even displacing the XTZ rally. LINK allows both short-term trading, and long-term “hodling” behavior in expectation of higher prices.
┌ $LINK/USDT [4h] Report
├Close: 3.921 ₮ (-0.109 ₮)(-2.7%)
├Open Interest: 7.58M ₮(-0.3%)
├4h Vol : 13.87M ₮(+1%)
┊├Buy[49%]: 6.75M ₮(-4%)
┊├Sell[-51%]: -7.12M ₮(+7%)
┊└Net[-2%]: -364.66K ₮ ← 415.87K
└ 📉Bearish Under [3.940 ₮]📉️ pic.twitter.com/RHB16Ahwvt
— Binance Futures Tracker (@FuturesTracker) February 28, 2020
LINK is also highly liquid, based on the “liquidity market cap” measure by Messari. While LINK is one of the few altcoins with a $1.3 billion market cap, its liquid market cap is reported at $3.9 billion. LINK is also one of the few assets having a highly active derivative market on Binance.
This also explains the very high reported liquidity of LINK trading, which surpasses other altcoins. Adjusted trading volumes are around $145 million per day. The most recent LINK rally is thus the product of a derivative market, as well as a strong community holding onto physical coins.
What do you think about the LINK price rally? Share your thoughts in the comments section below!
Images via Shutterstock, Twitter @FuturesTracker @JohnCioffoletti @Chainlink_Alert
First Published at This Top Altcoin is the Only Survivor of Today’s Red Market – Bitcoinist