Researcher Unravels the Mystery’s Behind Chainlink’s Wild Rally

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Wed, 08/12/2020 - 19:00
Alex Dovbnya
Messari’s researcher Wilson Withiam reveals a major reason why Chainlink (LINK) continues to set new all-time highs
Researcher Unravels the Mystery’s Behind Chainlink’s Wild Rally
Cover image via stock.adobe.com
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On Aug. 12, Chainlink (LINK) set yet another all-time high of $16.13 at 17:00 UTC on the Binance exchange.

LINK
image by tradingview.com

This allowed the cryptocurrency to enter the top five on CoinMarketCap for the first time after toppling Bitcoin Cash (BCH).

While LINK’s 628 percent year-to-date rally is making dumbfounded skeptics scratch their heads, Messari’s researcher Wilson Withiam concludes that there is one major reason behind it — a litany of partnerships. 

Succeeding where Tron failed 

Chainlink has already managed to make its decentralized oracles the industry standard by forging an impressive list of deals. According to Withiam’s estimations, they are close to reaching 200 projects.

Chainlink
image by @WilsonWithiam

Major DeFi players (Kyber Network, Synthetix, AVA), Tezos, and even the Google Cloud team have all joined forces with Chainlink to use its data feeds.  

Judging by LINK’s performance, this approach has proven to be infinitely more successful than the announcements of announcements made by Tron CEO Justin Sun. Withiam called them “a dog and pony show.” 

“Ultimately, the market wants results. The Tron strategy of announcing an announcement has become seen as nothing more than a dog and pony show.” 

Chainlink gets compared to Ripple in how it introduces new partners left and right to sustain investors’ interest. 

Withiam says that smart contracts platforms, for instance, choose a different path to gain competitive advantage by building a strong community of developers:

“Each sector has an ideal go-to-market strategy. Smart contract platforms sought to build a robust and passionate dev community. DeFi projects with token-weighted governance should get tokens into the right contributor’s hands rather than just any jabroni.”

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Other projects follow suit

Band Protocol, a competing oracles platform, adopted a similar marketing strategy, which also resulted in a 6,000 percent rally for its native BAND token.

The problem is that oracle tokens are not money (unlike Bitcoin and Ethereum), and their real value remains a big question.  

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.