Altcoins
Chainlink Price Collapses Amid DeFi and NFT Challenges
Chainlink price plunged to the lowest level since November 22 as investors the crypto fear and index plunged. LINK dropped to a low of $6.12, which was the lowest level since November 22. It has dropped by more than 21% from its highest level this month.
Staking introduction flops
Chainlink made headlines earlier this month as the blockchain network partially introduced staking features. This introduction was part of the platform’s transition into a decentralized oracle network (DON).
A DON differs from a centralized platform in that most operations are carried out by a decentralized autonomous organization (DAO). As a result, operates in the goals that Satoshi Nakamoto had when he founded Bitcoin.
By introducing staking, it means that LINK holders will be able to earn a return by simply delegating their tokens in the network. For now, this feature is available to a small group of users.
At the time of writing over 22.5 LINK tokens have been staked and are earning an APY of 4.75%. This return is slightly better than that of other popular coins like Ethereum.
DeFi TVL collapses
Chainlink price has collapsed because of the ongoing decline of the DeFi industry. Data shows that the total value locked (TVL) in DeFi has plunged to $61 billion. At its peak, there were over $150 billion of assets in the industry.
Chainlink has a strong correlation with DeFi since its technology is widely used by some of the biggest players in DeFi. It provides them with price feeds and other products like Keeper, Verifiable Number Generator, and Automation.
Chainlink has also created a product to solve one of the bigges challenges today. After the collapse of FTX, many companies started publishing their proof-of-reserves. Using its technology, Chainlink is providing companies with these features to boost their transparency.
Chainlink price also dropped because of the collapse of the NFT market. This is notable because the network recently introduced NFT floor pricing feds that are useful in the industry. The developers wrote:
“These feeds operate the same way as other Chainlink Data Feeds. NFT Floor Pricing Feeds are supported by Coinbase Cloud’s aggregation algorithm and Chainlink’s oracle infrastructure to help eliminate extreme price outliers.”
Solana price performance in recent times has been remarkable, surpassing Ripple and Binance Coin to become the fourth-largest cryptocurrency by market cap. The SOL price breached the critical level of $100 for the first time since April 2022 over the weekend to imbue optimism among investors. However, the altcoin has corrected by 7%, suggesting that the market is overheated. At the time of writing, the ‘Ethereum killer’ was trading slightly lower at $111.60.
SOL Outlook
Solana price has made a significant recovery over the past few weeks, climbing above the psychological level of $100. The altcoin has been one of the best-performing assets this year, extending its year-to-date gains to more than 1,025%, with more gains recorded in the past month alone. However, even with such growth, analysts have noted that Solana has a bleak chance of topping its ATH of $260.
The reason behind this is the increase in supply relative to its value. In November 2021, when the Solana price hit its all-time high of $260, its total market capitalization was around $78 billion. Despite the value of the crypto asset being less than half of what it was at the top, its market cap is currently hovering near $50 billion.
This has been brought about by the increase in the Solana supply by more than 100 million SOL over the past two years. According to some analysts, for the altcoin to retest $260, its…
Solana price has noted significant gains over the past few weeks, climbing to its highest level since April 2022. The ‘Ethereum Killer’ almost topped the crucial level of $100 on Friday, before pulling back slightly. The asset’s recent surge has catapulted Solana’s total market cap to $39.6 billion, ranking 5th after and above BNB and XRP, respectively. Solana has jumped by more than 22% in the past week and more than 80% in the month to date. At the time of writing, SOL price was trading 0.90% lower at $93.10.
Catalysts Behind SOL’s Rally
Solana price has been on a strong bull run over the past few days, rocketing to its highest level in 20 months as the network benefits from the substantial activity and strong interest in memecoins. The SOL token, the native digital asset of the high-performance blockchain platform Solana, has shown some serious strength over the past few weeks, outperforming all the altcoins in the market.
The recent surge in the Solana price has been linked to heightened on-chain activities on the Solana blockchain. Notably, the ongoing hype for the blockchain’s speedy transactions, cheap fees, and a lottery of meme coin issuances has buoyed SOL’s on-chain activity. Metrics have revealed that Solana has been the strongest draw among on-chain traders, with trading volumes and network fees outperforming Ethereum- the largest altcoin by market cap.
Cited figures provided by DeFi aggregator DeFiLlama…
Solana price has jumped more than 8% over the past week, breaching the important level of $60. At the time of writing, Solana was trading 3% higher at $61.07. The asset’s total market cap has climbed to $25.9 billion over the past week, ranking it the 6th largest cryptocurrency after XRP. The total volume of SOL traded over the last day has declined by 8%.
SOL’s Bullish Cues
Solana’s price has been among the best-performing cryptocurrencies this year amid continuous growth. The “Ethereum killer” has consistently impressed investors throughout the year on the back of a resurgence in bullishness, which saw SOL’s price climb more than 513% in the year to date. Institutional investors have also shared the bullish sentiment, making Solana their most preferred altcoin.
In the week ending November 24, Solana recorded inflows worth nearly $3.5 million, significantly more than the other altcoins’ inflows combined. The asset’s monthly inflows were higher at $40.2 million, lower than Ethereum’s $99.6 million inflows in the same period. Other altcoins, including Litecoin and Ethereum, noted significant outflows, making Solana nearly half of the home for DeFi. This implies that when it comes to institutions, Solana is currently the best-performing altcoin with the potential of a long-term rally much higher than other digital assets.
Notably, the Solana DeFi ecosystem accomplished a significant milestone earlier this week. Its Total Value Locked (TVL) hit a new yearly peak of over $655 million,…
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