The total value locked away in DeFi applications has breached over $11 billion and is still climbing. This record inflow of decentralized finance capital could continue to propel Chainlink’s bullish momentum further.
Here’s why this cryptocurrency central to DeFi data could surge higher alongside this rapidly skyrocketing statistic.
DeFi Inflows Peak Over Record $11 Billion, Trend Shows No Signs of Slowing Down
The DeFi movement has helped bring cryptocurrencies up from out of the bear market gutter and back into the limelight of the financial world. These newfound ways to access financial applications without a central authority required has enabled all kinds of new ways for crypto investors to maximize the value and return they get from holding.
Yield farming, liquidity pooling, and token swaps have replaced centralized exchanges, alongside traditional lending and borrowing. DeFi makes this all possible through Ethereum-based decentralized exchanges and applications.
The trend first picked up in early 2020 with Ethereum leading the charge and was later eclipsed by the fortunes made by Aave, Yearn.Finance, SushiSwap, and others.
Related Reading | Chainlink Bull Flag Breakout Could Target $25 By Year’s End
At least at first. Compound and Maker who early on dominated the DeFi market in total value locked up have since succumbed to the popularity of Uniswap. The recent launch of free UNI tokens sealed the deal, propelling the platform to the top dominant liquidity pool in terms of TVL.
While UNI is doing well, and the rest of the DeFi space is still holding strong, there’s another cryptocurrency that could benefit from the continued increase in TVL locked away in DeFi applications. That altcoin is none other than Chainlink.
Total Value Locked In DeFi Reaches $11B | Source: DeFi Pulse
Why Chainlink’s Bullish Momentum Could Return Alongside Record Capital Inflow
DeFi applications and automated market makers like Uniswap require accurate price data so users are always getting current market values of whatever token they’re swapping.
These applications rely on oracles such as Chainlink to ensure there is no discrepancy in data reporting and that any connection made to it has exact parity in pricing data.
Related Reading | This Chart Suggests Chainlink’s Parabolic Rise Isn’t Finished
This technology earned Chainlink a nod from the World Economic Forum earlier in 2020, and is among the top reasons why the crypto asset has been soaring for two years since it was first minted.
And while whales may be calling for Chainlink FOMO to fizzle out, it could only just be getting started according to these rapidly growing DeFi metrics.
LINKUSDT Daily Bullish Momentum And Possible Bull Flag Pattern | Source: TradingView
Featured image from Deposit Photos, Charts from TradingView and DeFi Pulse