Chainlink price has done well in the past few months, helped by the strong performance in the DeFi and crypto industries. LINK surged to a high of $22.90 on Sunday, its highest point since January 2022. Like other coins, it has surged by more than 330% from its lowest point in 2023.
Chainlink’s ecosystem is doing well
Chainlink, the biggest oracle network in the world, is doing well as the crypto bull run gains steam. Data compiled by DeFi Llama shows that the total value locked (TVL) in the DeFi industry has jumped to over $170 billion, its highest point since May 2022. This is a strong comeback considering that it bottomed at less than $60 billion during the crypto winter.
The biggest players in the DeFi industry are the likes of Lido, AAVE, EigenLayer, Maker, and JustLend. Most of these big platforms use Chainlink, which connects off-chain data to the on-chain.
A separate data shows that the Total Value Secured (TVS) in the Chainlink ecosystem has continued rising and is currently at over $28 billion. Chainlink secures the likes of AAVE, Spark, Compound, and Venus.
Chainlink price is also rising as demand for its staking feature rises. Data compiled by Chainlink’s website shows that the v0.2 Community Pool has 40,875,000 LINK staked. At the current price, these assets are worth over $858 million. The variable reward stands at 4.32%.
Fundamentally, Chainlink is doing well as investors cheer key trends in the blockchain industry. There are signs that the gaming industry is bouncing back as the number of Axie Infinity users has risen.
Further data shows that the volume of cryptocurrencies traded in decentralized exchanges has jumped sharply in the past few months. The volume in centralized exchanges in the past 24 hours stood at over $133 billion compared with DEXes’ $7.2 billion. This is a sign that these platforms are gaining market share.
Chainlink price forecast
The daily chart shows that the LINK price has done well in the past few months. It has rallied from last year’s low of $4.90 to over $20 today. The coin has remained above the 50-day and 25-day Exponential Moving Averages (EMA).
Chainlink’s MACD has remained above the neutral point. Notably, the coin has formed what looks like a rising wedge pattern, which is a bearish sign. This pattern has a few weeks to go before it reaches its confluence level.
Therefore, Chainlink price will likely continue rising as buyers target the key resistance point at $25. This view will be confirmed if the crypto bull run continues.
