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Chainlink, an ETH-based blockchain designed to connect smart contracts to external data sources, has seen incredible growth in the recent past.
The network’s utility token (LINK) now appears unstoppable after gaining 12.3% against the US dollar in the past 24 hours.
This surge saw the popular altcoin hit an all-time high of $19 before it gained a further 0.95% to trade at $19.175 during press time.
Let us examine the various events surrounding LINK in the recent past and what analysts think about the short-term price action of the sixth largest crypto on CoinMarketCap.
LINK Reaches $6 Billion Market Cap
LINK has registered a series of higher highs over an extended period. Many people in the crypto space believe the token could climb even higher due to an ongoing influx of investors into the Chainlink market.
In fact, the token climbed by nearly 80% over the past week, adding to gains of 120% in August alone and an astounding near-600% surge over the last year.
This explosive growth, which took the token’s total value to the $6 billion mark, according to CoinMaeketCap, has baffled some traders.
The damning report that claimed LINK is a pump and dump scheme has since been debunked as an attempt to short LINK prices.
Dave Portnoy Buys $50k Worth of LINK
Interestingly, celebrity day trader Dave Portnoy is bullish on LINK and has aggressively promoted the asset in the past few days.
Since hosting the Winklevoss Twins of the Gemini exchange on his twitter channel for a video meeting to discuss crypto, the trader proceeded to buy $200K in BTC and $50K in LINK.
Portnoy then followed up his video meeting with a tweet from August 15th, where he projected that LINK would shoot up to the moon.
The celebrity trader’s recent endorsement of LINK is bullish because of his influence on twitter, where he boasts over 1.7M followers.
Portnoy’s recent crypto-related video on LINK has since garnered thousands of likes and has maybe introduced thousands of people to the world of crypto.
Will LINK Price See a Pullback?
Chainlink investors managed to push the asset as high as $19, but some analysts argue that a top is now near. Some analysts are highlighting that LINK is nearing a top based on technical indicators.
The chart displays the Elliott Wave, a form of technical indicator that examines the movement of crypto markets resulting from investor mindsets.
On-chain metrics also support the notion of LINK price nearing a top, and that a pullback is likely.
Data from blockchain analytics firms have detected a massive inflow of LINK investments into exchanges, suggesting that some traders are looking to sell their token holdings and start taking profits.
Chainlink Investors Can Borrow Stablecoins against LINK
Crypto enthusiast AkuRyoto is against the idea of losing precious LINK tokens to liquidation. He advised to the twitter community:
“Through the power of #DeFi, using Aave, you can borrow stablecoins against your $LINK stack and spend those – without ever selling $LINK!”
Aave users can borrow ETH-based stablecoins with the ability to lock LINK as collateral. Repaying all loans lets users withdraw their entire LINK stack and avoid liquidation.
Given the current uncertainties in the global economy, crypto enthusiasts can explore the potential of crypto-collateralized stablecoins while deriving the value of other crypto assets used as collateral.
A few months ago, the lending platform inked a deal with Tether Ltd, the blockchain platform that powers USDT stablecoin. The partnership allows USDT holders to earn a passive income via the open lending platform to promote wider adoption of the world’s largest stablecoin.
Data from Aave reveals that USDT offers lenders a monthly yield of 12.25%, which is significantly higher than the returns MakerDAO’s Dai provides (8.08%). The protocol can also function as an investment vehicle that allows crypto asset holders to gather yields by leveraging interest-bearing custodial accounts.
Aave allows people to earn 0.02% to 4.92% from various crypto assets, including LINK and DAI. By supplying LINK to the Aave protocol, users agree to lend that value out, thus earning interest.
This way, LINK investors can avoid liquidating their tokens and still have the option to withdraw their share of holdings out of the protocol.
The price of Chainlink’s native token has climbed to new highs over the past few weeks amid an ongoing craze in the decentralized finance (DeFi) space.
LINK is projected to surge higher as DeFi projects increasingly deploy Chainlink’s blockchain to link external data sources and payment systems.