The Altcoin of the hour
The decentralized Oracle network seems to know no boundaries. For weeks LINK has been chasing one all-time high after another. In a rush, the “interface currency” pulverizes all resistance and investors can look forward to a ROI of over 500% (since the beginning of the year). After the outstanding performance Link pushes forward to position 6 of the crypto charts for the first time and at the same time makes serious claims to the Altcoin throne. We take a look at the current market situation.
At the time of writing, LINK is quoted at USD 13.12, which represents a daily gain of 18.03 %. With a market capitalisation of approx. 4.6 billion USD, Chainlink is placed on position 6 in the crypto charts. No other coin from the top 30 can currently keep up with Sergey Nazarov’s currency. If one compares the current price with the ICO price from 2017 (starting price: USD 0.11), a ROI of over 8000 % can be seen.
The technology behind LINK
Chainlink is a decentralized Oracle service that aims to make smart contracts on the block chain compatible with the real world. The project uses so-called Oracle Contracts. Through “Oracles” it is possible to feed external data records into the block chain. The currency for carrying out these data transactions is called LINK. Chainlink would like to support, besides Ethereum, other smart contract service providers and relies on cross-chain transactions.
On-Chain components and Off-Chain components
Chainlink’s technology is based on on-chain and off-chain components that perform different tasks. The on-chain components link the “Oracles” in the Chainlink system with the Smart Contracts. In a second step, the Oracles send the data records from the Chainlink block chain to other Smart Contracts on different block chains. The off-chain components of Chainlink contain the respective nodes in the ecosystem, which collectivise information from databases and save it in Oracle contracts.
Bearer of hope
Chainlink could become the driving force behind a new Altcoin Season. Leaving out the Bitcoin Fork Bitcoin Cash and the Stable Coin Tether, only the Ethereum and Ripple are ahead of LINK. The booming DeFi market could further fuel an Alt Season. Currently, the BTC Dominance Index is at 60.4%. According to this, the Altcoins could also capture important market shares on Sunday. The bull run of Chainlink and the testnet start of Ethereum 2.0 ensure that more and more investors are deciding to switch to alternative assets. Nevertheless, most Altcoins are still following the first mover.
What does the Bitcoin do?
At the time of writing, the market leader is trading at a price of USD 11612, which corresponds to a daily decline of 0.89%. The bulls can compensate for the rebound from the USD 12000 mark, but for a full recovery they would have to overcome the resistance at USD 11800. On the downside, the next support lines are currently at 11600 USD and 11800 USD.