The Chainlink price retreated on Thursday as its new competitor DIA soared to its highest level since April. LINK is trading at $6.90, which is slightly below this week’s high of $8. Its market cap has dropped to more than $3.2 billion.
LINK and DIA divergence
Chainlink is a leading blockchain project that offers important services to other platforms. It is a smart oracle platform that allows developers to link off-chain data to the on-chain. It does this by collecting data from centralized and decentralized data, refining them, and making them available in on-chain transactions.
For example, a DeFi platform like AAVE uses an oracle to provide accurate price feeds from companies like CoinMarketCap and CoinGecko.
Chainlink has the biggest market share in the industry considering that it is widely used by platforms like Uniswap, Aave, Compound, and Frax. According to DeFi Llama, the Chainlink has a total value secured of more than $25 billion.
Learn more about how to buy Chainlink.
At its peak, the platform had a TVS of over $60 billion. The recent decline has been because of the recent crash of Terra and its ecosystem. That’s because Terra’s DeFi platforms like Anchor Protocol and Astroport uses Chainlink’s price feeds. Therefore, its collapse has had a negative impact on Chainlink and demand for LINK.
Further, investors are getting more worried about the DeFi industry. A closer look at data shows that the total value locked (TVL) in the ecosystem has dropped from over $150 billion to about $70 billion.
Meanwhile, Chainlink is gaining more competition from DIA, a relatively small oracle network whose price has more than doubled in the past few days. Its price has risen sharply after the developers inked several deals to expand its ecosystem. DIA has a total value secured of over $213 million. It is used by platforms like Injective and Starley Finance.
Chainlink price prediction
The daily chart shows that the Chainlink price has been in a strong downward trend in the past few months. The sell-off accelerated when the coin dropped below the support at $11.21, where it had struggled moving below several times before.
It has moved below the 25-day and 50-day moving averages while the Relative Strength Index has moved to the oversold level. The coin will likely continue falling as bears target the support at $5.
This news is republished from another source.
