Chainlink price rebounded on Wednesday as decentralized finance (DeFi) activity also rebounded. The LINK token rose to $ 31.4260, up about 26% from its lowest level this month. Its total market capitalization rose to more than $ 13.77 billion, making it the 13th largest cryptocurrency in the world.
Chainlink and DeFi
Chainlink is a rapidly growing blockchain network that plays an important role in many areas of the industry. The platform is supported by data providers, smart contract developers and researchers, among others. The most popular data providers include Center Prime, CryptoCompare and CoinGecko.
Chainlink is best known for its decentralized Oracle networks (DON). They improve and expand the capabilities of smart contracts on a target or main chain. They also offer network, storage and computation functions with strong confidentiality and integrity.
Chainlink is widely used in some of the most important industries in the world, including insurance, government, and utilities. However, it plays its most important role in the areas of DeFi, Non-Fungible Tokens (NFT), gambling and random numbers.
It is mostly used on these platforms to provide current price data. Some of the platforms with Chainlink are Aave, Compound, and Rari Capital. Chainlink is also used in options, futures and synthetic assets such as those offered by Synthetix. LINK is the native token of the ChainLink platform.
Hence, the Chainlink price is increasing due to DeFi’s general boom. Data compiled by DeFi Llama shows that the total value of Revoked Tokens (TVL) in DeFi has risen to more than $ 183 billion. A closer look shows that most platforms like Aave, Curve, Maker, Uniswap and Anchor saw their TVL increase.
From a macroeconomic perspective, the Chainlink price has risen due to the relatively weak US inflation data. These numbers give the Federal Reserve more leeway to maintain a relatively cautious stance.
Chainlink price forecast
The four-hour chart shows that the LINK price has risen again this week. It’s $ 31, which is slightly below this week’s high of $ 31.50. The price has already risen above the 25- and 50-day moving averages (EMA). It is currently trading near the major resistance level of $ 30.50, which peaked on August 16th.
As such, the uptrend could soon accelerate if investors target the monthly high of $ 36.3, which is about 17.50% above current levels.