Trade Chainlink and Profit from the DeFi Bonanza

One Chainlink token was worth just $4 in June since the DeFi star has made a splash in the cryptocurrency market. The price hit $20 in mid-August, however, it bounced hard from the resistance and is trading around $12 at the moment.

Chainlink has quickly become the world’s fifth-largest cryptocurrency with a capitalization of almost $4.4 billion at today’s prices. Only Bitcoin, Ethereum, Tether, and Ripple are larger.

What is Chainlink? The idea behind the token is to create a bridge between the world of smart contracts powered by Ethereum, and other users. It allows other players to offer decentralized finance services to their customers. That’s the next step towards creating an alternative financial system that would be independent of governments and could take over if the current system collapses under the pressure of debt.

Chainlink – the rising star of crypto markets – is available on SimpleFX. You can open an LNKUSD account as well!

[button link=”https://app.simplefx.com/instruments/LNKUSD/chart” size=”medium” target=”new” text_color=”#eeeeee” color=”#df4444″]SELL Chainlink[/button]        [button link=”https://app.simplefx.com/instruments/LNKUSD/chartn” size=”medium” target=”new” text_color=”#eeeeee” color=”#3cc195″]BUY Chainlink[/button]

Chainlink popularity is backed by a partnership with Google. Since 2019 the token has a dedicated connection to BigQuery API, a data warehouse and one of Google’s most popular service for business

That’s the story behind the fundamental value of DeFi tokens. Sounds like a great investment? Maybe, on the other hand, we might be in the very middle of a hype-pumped bubble as it’s very difficult to put real value to any of these innovative initiatives. It’s your call, we would never advise you to buy or sell Chainlink now, but it’s definitely a hot asset and worth speculating with.

ETHUSD has been strongly influenced by the DeFi hype

Remember that most DeFi products use Ethereum, so their popularity also affects ETHUSD. You can see that since this summer Ethereum has become also more volatile than usual. In the last weeks, the top DeFi tokens outperformed ETH, but this may change as they are much more speculative assets than the world’s largest crypto. Still, it’s a cryptocurrency market, so you should expect massive price swings.

Since blockchains by principle can’t have access to data outside their paths or networks, a DeFi instrument is needed to facilitate data feeds in smart contracts, and Chainlink helps to solve such needs.

What you should know: Chainlink is a DeFi based token, as Defi means “decentralized finance.” It is a crypto ecosystem made up of financial apps designed on leading blockchain platforms.

Additionally, you can run an account in Chainlink with SimpleFX. Enjoy!