Clear Pattern for LINK: Constant Buy Pressure, HODLing, & Shilling to Continue to Bring New Highs
Chainlink is on fire.
As it has been throughout 2020.
This past week, LINK continued to its new all-time highs, no surprise there. With more than 61% gains last week, LINK hit a new ATH at $19.98 on Sunday.
For now, the fifth-largest cryptocurrency with a market cap of $6.65 billion recorded a retracement of 5% to trade at $19.
— Josh Rager 📈 (@Josh_Rager) August 17, 2020
Just like the price, the number of daily active addresses using LINK has reached new all-time highs.
In 2020 so far, the digital asset is up 918%, much like other high performing DeFi tokens.
Chainlink, the tokenized decentralized network that provides price feed data, represents over 50% of the total market capitalization of the decentralized finance, which exceeded $14 billion last week, as per DeBank.
The digital asset has been outperforming the broader crypto markets, decoupled from bitcoin, leaving the top cryptos behind, with a return of more than 10x year-to-date.
These gains were propelled by the popular day trader Dave Portnoy tweeting about sending the cryptocurrency to the moon to his 1.7 million followers after Winklevoss twins educated him about bitcoin and got him interested in altcoins.
$link to the moon.
— Dave Portnoy (@stoolpresidente) August 15, 2020
Another reason behind these highs is the constant buy pressure on the digital currency while LINK marines continue to HODL strong. Only 6.4% of LINK supply is currently on exchanges, which means holders are still not interested in taking profits.
According to the popular Yearn.Finance protocol, about $3,000 worth of LINKs are purchased every 12 hours.
“Excluding base growth, this is ~20% APY from purchases. yUSDC is performing at ~50.09%. yUSDT would yield an additional ~20%. We are very pleased with vault performance and will scale up in the near future,” tweeted the DeFi project.
yVault was launched earlier this month with an aim to increase the yield by 400% and an attempt to lower the slippage on YFI Uniswap pool, which has been 7x more than what liquidity providers earned on the pool.
“Right now, this is passively buying ~$6k of LINK per day. Fundamental change in market dynamics, especially as this scales up,” commented analyst Ceteris Paribus on this development.
The analyst has previously emphasized that if yVaults gain steam, it will have massive implications on the deposit asset of choice, such as LINK because there will be a constant daily bid to that digital asset, which will become more pronounced the larger the “whale” pool gets.