Explosive DeFi growth may push Chainlink price beyond $32

Analyst Timothy Peterson thinks that Chainlink price has the potential to touch $32 by year-end, provided the staggering growth in the DeFi sector continues. Chainlink token has already made an explosive move upwards in the past two weeks as prices rallied by 88 percent.

The sharp rise in the DeFi sector has meant good news for many firms, including Chainlink, oracles, and more. Investors have raised their stakes in the DeFi realm, and the positivity has percolated down to the firms associated with the Decentralized Finance sector. DeFi Pulse states that the total value locked in DeFi has increased four times in the past two months. No wonder Chainlink price is rising at a similar pace.

Chainlink price still has decent upside potential

The lofty target given by Timothy Peterson is based on potential growth in the Chainlink network, probable partnerships, and the DeFi boom. At the same time, he says that $32 may very well be the upper limit as LINk really won’t be able to sustain higher levels. He warns investors against buying LINK at higher levels as correction can wipe out their gains quickly.

DeFi-related projects are rallying on the back of explosive growth in the DeFi sector. Despite the steep sector-wide rise, the valuation difference between the larger and minor networks is increasing. For example, the current valuation of Chainlink stands at $4.47 billion. In comparison, the valuation of Band Protocol is far lower at just $257 million. The industry must demonstrate uniform growth to close this gap and reflect a universal DeFi growth.

DeFi wave looks set to rise even higher

If the Chainlink price touches $32, its valuation will stand at $10 billion. Such a figure would put it far ahead of its nearest competitor Band protocol. It remains to be seen if Chainlink has the vital fundamental ingredients to support such valuation by the end of 2020.

As per Santiment, the market sentiment is increasingly positive with regards to the social activity of Chainlink and Band Protocol. However, the interest pales in comparison to the major cryptocurrencies.


About the author