Chainlink suffers losses because the token continues to follow the broader market wave of bearish pressure. In line with Coingecko, the token is down 23% up to now 24 hours, representing a big wipe in value after the value stabilized within the $13 to $14 price range.
The crypto market continues to be influenced by outside forces within the short to medium term, with the anxieties of personal equity bleeding into the crypto market turning the correction into an absolute bloodbath.
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What’s In It for Chainlink?
LINK’s area of interest of capturing and streaming price feed data to partners has been shaken by the recent groundbreaking market movements which have shown that the token fails to capture any value.
In a recent X post detailing recent developments that will affect the crypto world, supporters of Chainlink left comments that show their skepticism of its relevance to the LINK token.
Capital markets news: Mercedes, Siemens, and other major German enterprises test industrial bank money tokens (CBMT).
“Robots might be paid routinely for the work they perform for other firms or customers with the assistance of tokens,” noted the Proof of Concept (PoC).… pic.twitter.com/KqhV5CcNAh
— Chainlink (@chainlink) August 2, 2024
“What does any of this need to do with the $Link token? The token is what funded you guys from the very starting to [the] present day. How is it capturing value?” a user on X said of their comment.
What does any of this need to do with the $Link token? The token is what funded you guys from the very starting to present day. How is it capturing value?
— TT 🥭 & FUD Farmer (@TTLinkie3299) August 2, 2024
Despite the skepticism of the follower base in Chainlink, the organization continues to receive positive news at first of the month. Last week, Concero, a blockchain infrastructure platform, announced its number of Chainlink’s CCIP for “secure cross-chain interoperability.”
Concero also joined Chainlink Construct, a partnership program that grants them enhanced access to Chainlink services which guarantees the standard of the info stream they’ll receive.
LINK market cap currently at $5.1 billion. Chart: TradingView.com
One other addition to the Chainlink Construct family is Rivalz AI, the “first AI intel layer”, which can help the latter within the security of its AI-driven data network. Because the Construct program is a two-way street, Rivalz made 3% of its token supply available to Chainlink stakers and providers which is an attractive offer to would-be stakers on Chainlink.
Nonetheless, sell pressure continues to plague LINK completely negating the attractiveness of the brand new additions to Chainlink’s growing Construct program.
The platform also suffered a large outflow of staked crypto. In line with DeFiLlama, Chainlink suffered a 20% decrease in total value locked (TVL).
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More Losses In The Short To Medium Term For LINK
At its current position, LINK will proceed to face losses if the token falls well beyond its October 2023 level.
LINK bulls should keep defending the $8.3 support as this may enable them to secure higher positions in the long run. Nonetheless, the present environment of hysteria and fear will hinder efforts to retake lost ground.
Investors and traders should then exercise caution because the market might follow the downward spiral that began with the correction phase that began last week.
Featured image from Pixabay, chart from TradingView