The situation of the market has made people worried especially those who are expert in the field of finance and look the virtual currency as a good option presently. The rise in one of the cryptocurrencies has made them debate over a few points. As the price of Chainlink continues to rally, market observers are concerned about the valuation. Some people have started asking if it is in a bubble phase as the growth has been more than 160% in the year 2020. On the 13th of July 2020, it reached an all-time high of $8.48, and it had rallied more than 34%. Even though it has retraced back some of its gains, it still has a good run compared to other entities in the markets, which is a point of concern for many users and experts.
Hot investment in the market
LINK has always been trending in the market due to its enormous growth. In the year 2019, it delivered more than 1481% growth, and this gave phenomenal profits to the investors. The return on investment was estimated to be more than 5000%, and this is something phenomenal in the cryptocurrency industry.
Is this a bubble?
Investors are also worried as this trend has got to do with the crash of Bitcoin that started in March. Market analysts are now checking if LINK is fundamentally strong and questioning its valuation. One thing that is visible in this growth is that more and more people are participating in the rally, and this is one of the biggest driving factors for this rally. Even companies and node operators are also joining the rally, and this has further boosted confidence in some investors.
Growing demand for DeFi enabled coins
On the whole, there is a growing demand across the world for DeFi enabled coins, and LINK is no exception. This trend is seen across different sectors, and the trend is likely to continue for many more months. No matter what, investors are very happy with the growth, and they are likely to invest more in such coins soon.
Many other cryptocurrencies are facing a lot of heat in the market as they are not able to match the performance of LINK. Considering this growth, many new investors are also entering this market to participate in the rally. All these factors can further boost the price of LINK in the near term.