The Chainlink price is crawling back as investors reflect on the latest statement on LINK staking in the platform. The LINK token rose to a high of $9.02, which was the highest level since May 11th of this year. It has risen by more than 53% from its lowest level in May, bringing its total market cap to over $3.9 billion.
Chainlink is the biggest oracle platform in the blockchain industry. It is a platform that helps developers bring off-chain data to the blockchain. As a result, it has become an essential tool in enabling industries like Decentralized Finance (DeFi) and games. Developers of these projects want to have accurate and randomized data.
Therefore, one of the main reasons why the Chainlink price has crashed recently is the performance of Terra and its ecosystem. Most DeFi projects created in Terra’s ecosystem, like Anchor and Mirror Protocol, used Chainlink’s price feeds. As a result, the total value secured in the ecosystem has crashed from over $60 billion to over $25 billion.
The Chainlink price is tilting upwards after the developers announced new staking features that will enable holders to generate returns by contributing to its governance. The new upgrade will have four main goals.
First, it will increase the crypto-economic security of Chainlink services, enable community participation in the network, generate sustainable rewards for users, and empower node operators to access higher-value jobs by staking. The developers wrote: “The introduction of staking is a pivotal moment that marks the evolution to Chainlink Economics 2.0—a new era in Chainlink’s long-term security and network economics.”
The daily chart shows that the LINK price has been in a slow recovery process in the past few days. The price is slightly below the upper side of the descending channel shown in black. In addition, the coin is between the 25-day and 50-day moving averages, while the Relative Strength Index (RSI) has moved above the neutral point of 50.
The Chainlink price will likely keep rising as bulls target the upper side of the channel at around $11. A drop below the support at $8 will invalidate the bullish view.
This post was last modified on %s = human-readable time difference 10:12