Starring Jason Statham, Ryan Gosling, Margot Robbie, and Kevin, your ex-classmate. That’s what the headline above may look to the investors and traders who do not follow the crypto market closely. The thing is that Chainlink’s co-founder recently claimed: only Bitcoin, Ethereum, and Chainlink are “meaningfully decentralized.” Who cares, you’d think? Well, if you take a look at the Chainlink's last month chart, you will probably change your mind. So, let’s delve into the details to find out why this coin is so good now.
First, we’ve prepared the chart illustrating Chainlink’s movements over the past month. And as you can see, the digital currency gained nearly 30%.
Is it really such a cool result? It's about time to add some crypto behemoths to the chart – here you are BTC USD and ETH USD. Compared to Chainlink, their growth on the chart is hardly noticeable.
However, sometimes crypto giants can be off-trend. For example, if there is a tendency for small coins to grow. To test this theory, let’s compare two lines related to dominance. This criterion shows how the capitalization of an individual coin or a group of coins has changed compared to the entire cryptocurrency market.
The blue line shows the percent change in Chainlink's dominance, while the orange line represents what has been going on with the dominance of all altcoins (we’ve excluded the top 10 altcoins to lay emphasis on the pattern for smaller currencies). So, long story short, all three charts tell us that it’s not associated with overall market movements, but only with Chainlink.
There are two pieces of news that help this powered by the Ethereum token open-source technology move against the market in September. The first is that Chainlink was one of the financial institutions that participated in a successful tokenization test with SWIFT and Citibank. The second one is the announcement that Chainlink now lives on Base – a scalable Ethereum layer-2 blockchain developed by Coinbase.
It's also likely that concerns around Bitcoin and Ethereum prompted investors to pay extra attention to Chainlink. The increased demand – you know…
By the way, it doesn’t mean that Chainlink is overestimated now. According to some experts, it will continue its growth. But what’s more important is your own opinion and analysis. Now you know that Chainlink is worth considering. However, only your own research can help you decide whether you should add this coin to your portfolio.