The host of popular crypto channel Coin Bureau says Chainlink (LINK) The price action is still moving up despite the bumpy last few months.
In a new video, the pseudonymous Coin Bureau presenter Guy tells his 1.81 million subscribers that LINK was a hot altcoin in early 2021 but cooled off in the second half of the year.
“Despite all of Chainlink’s announcements, partnerships, updates and developments, LINK has only increased by 50% since the beginning of 2021.
This is a lot less than any other Cryptocurrency and even on some stocks.
So what’s up? “
For starters, LINK is one DeFi [decentralized finance] Sign.
DeFi was hot in 2020 and early 2021, but the hype has subsided in the last half year or so. “
Guy also explains how the team behind Chainlink sold LINK, which is putting tremendous selling pressure on the Oracle Altcoin.
“The Chainlink team has sold millions of LINK to finance Chainlink’s current operations and future expansion.
At that time [before the team began selling LINK], LINK’s circulating shipments were around 400 million.
Today, LINK’s circulating supply is just over 467 million.
Assuming an average price of around USD 20 per LINK, this results in over USD 1.3 billion in selling pressure.
Which, to be honest, is crazy. “
Guy then explains that this selling pressure is good for Chainlink’s long-term price action, but detrimental in the short term.
Another driver of the relative underperformance of LINK is its status as a “speculative investment”, as Guy explains in detail.
“The primary use case of LINK is to pay for decentralized data feeds, which are required for almost any decentralized application to work.
In theory, this creates a lot of demand for LINK, which should drive the price up.
But in practice it had almost no effect as LINK is not legal tender.
Therefore, every LINK that is used to pay for data feeds is subsequently sold by the node operators, and this selling pressure offsets the buying pressure generated by the DApps [decentralized applications] originally the LINK bought.
At the moment, the only demand driver for LINK is a speculative investment, and it looks like many private investors have put their money elsewhere. “
Despite insane selling pressure and the decline in retail funding, Guy still believes LINK will soon hit new all-time highs.
“LINK is still in a clear upward trend, unlike many other cryptocurrencies that never fully recovered from the massive crash in May.
If this uptrend continues, Chainlink could hit new all-time highs in the coming months, provided that Bull market stops. “
Chainlink is trading at $ 20.22 at the time of writing, down 1.51% over the day.
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Source: Crypto News Deutsch