Three major factors are likely to have pushed the LINK price to new record highs. They include price discovery, high-profile partnerships, and the strong momentum that is currently driving the altcoin market. Surging volume may also have contributed to this meteoric surge.
The price of LINK on July 6 surpassed its previous record high that was set at $5.31 and it officially entered a price discovery phase. This discovery phase in most markets results in a “fear of missing out” rally among investors. After a price discovery happens and the asset starts to rally to a new peak, the possibility of an extended uptrend increase.
Within just seven days of LINK recording a new all-time high, its price exploded by over 40% soaring from $5.31 to $8.48.
LINK’s trading volume also surged to levels unseen since April 2020 when the Bitcoin price was recovering from a steep drop to $3,750. At that time, demand for cryptos from the retail investors using Coinbase was surging. Based on the recent LINK’s momentum, one analyst said:
“Personal target here at $7.10-7.25 reached since the tweets earlier. Such a beast. Just a matter of time until it reaches the next one at $10. I think that’s doable this year.”
High Profile Partnerships
Throughout this year, Chainlink has secured many high-profile partnerships with companies operating within the crypto sector. Chainlink partnered with Nexo on July 8. Nexo is a crypto lender with around 800,000 users and Chainlink partnered with it to deploy its oracle solutions. Chainlink co-founder Sergey Nazarov said:
“We’re excited to bring Chainlink’s secure and reliable oracle solutions to Nexo’s popular lending platform to enable users to independently verify on-chain the interest and collateralization rates they should receive.”
In the last two months, Chainlink has joined hands with blockchain projects and firms including Matic Network and Hedera Hashgraph. Furthermore, Chainlink was mentioned in a Google blog post entitled Building hybrid blockchain/cloud applications with Ethereum and Google Cloud.
Altcoin Market Continues To Thrive
Following Ether’s (ETH) rally, the altcoin market, in general, has started its recovery. Bitcoin’s stability has offered a strong foundation for the altcoins to rebound after a year of stagnation.
The Ether price surged from $175 to $240 since the first week of May and it appears like the gradual recovery in the price has further enabled the altcoin market to retain its momentum.
In the last seven days, Bitcoin’s dominance dropped from 64.15% to 62.45% showing that altcoins have increased in market capitalization. Earlier this month, various traders like Peter Brandt projected that an altcoin season may happen at some point in 2020.
The major performances by leading altcoins like Chainlink, Cardano (ADA), Compound (COMP), and Tezos (XTZ), has led the sentiment around the crypto market to improve.