Bitcoin (BTC) slid to lows of $33,850 today while Aave and SushiSwap continued their march higher. Chainlink remains one of the most widely used oracle networks for powering universally connected smart contracts. Oracles are crucial to DeFi protocols because oracles provide valuable market and price data to DeFi platforms.
Hence, Chainlink seems likely to benefit the most from a rapidly-growing DeFi market. Chainlink recently hit all-time highs of $22.95 as the total value locked in DeFi reached a new all-time high of $24.5 billion.
Sushiswap (SUSHI) attained its all-time high of $12.48 on Sept 1st, 2020, barely 48 hours after it was launched. After reaching bottom lows of $0.58 in early November 2020, SUSHI began its steady upward climb, trading to highs of $7.78 on January 17th.
AAVE/USD Daily ChartLikewise, Aave has also shown an upward trend since November, reaching a new all-time high of $205.08 on January 16th.
A cryptocurrency trader with the moniker “Cantering Clark,” envisages a $30 price target for Chainlink in the foreseeable future. Stating:
“The last break paused for a moment before ripping up 80% before any significant correction. Break of an ATH is a green light for strength. Expect a delay in follow-through always. I think a 30$ $LINK soon is conservative.”
In contrast, some analysts believe that Chainlink’s upside potential is limited when compared to other DeFi tokens given its $9.2 billion market cap. Aave and SUSHI are currently valued at $2.35 billion and $912 million, respectively. However, analysts still say they are both undervalued at such a market cap, given user activity on both platforms.
An analyst opined that Synthetix and SushiSwap could likely become the next high-performance DeFi tokens after Aave and Chainlink in the near term. The price of SushiSwap has surged after a sharp increase in trading volume following the merger with Yearn. finance. SUSHI is currently trading at $7.18, up 64.18% over 7 days.
However for the topmost crypto asset, Bitcoin (BTC), there are mixed views on where it trends next. A recent report indicated that traders on Binance have started using lower leverage since the prior week which may be indicative of a heightened level of fear in the market and the lack of certainty in the near-term price trend of BTC.
A pseudonymous trader known as “Salsa Tequila” stated that in the short term, BTC must maintain $30,000 as a macro support area to avoid a fall into a “bear market territory.” Stating:
“If we go below 30k it’s bear market territory. We’d have enough underwater bagholders to keep us down for a long while. Until then, could go either way I reckon. If reclaim and hold above 40k, I think 50-60k vicinity plausible. Me thinking $BTC is topped is a bias, not a trade.”
On the other hand, some traders and analysts remain optimistic in the medium term, explaining that the recent correction was not only expected but also very necessary to keep the rally from overheating. Bitcoin is trading marginally up at $36,720 at the time of writing.
Image Credit: DeFi Pulse, Shutterstock
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