LINK token is up 51% after shorting by exchange
LINK token grew 52% in the last week
DeFi-related tokens continue to rise in value
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The massive decline in short positions in the futures market caused the Chainlink (LINK) token to skyrocket by 52% and Today traded at $ 13.8799.
DeFi related tokens are skyrocketing in value
Several tokens associated with the decentralized finance market have surged in value over the past few days. So Chainlink (LINK) coin has grown in price by 52% from 9.05 dollar up to $ 13.8799 on the exchange Binance. As Chainlink has shown an increasing uptrend, its competitor Band Protocol (BAND), which also works as network for oracles jumped 50% to hit a new all-time high of $ 12.44.
Experts suggest that such a rapid rally was caused by the liquidation of short positions in the futures market. As LINK grew continuously, its funding rate remained below 0%, hovering at -0.02%. The cryptocurrency futures market uses a mechanism called “financing” to ensure that the market is balanced. When market leaning heavily towards buyers, buyers should stimulate sellers and vice versa.
During the last several hours when the price of LINK was rising, him the funding rate on Binance Futures remained negative. This indicates that as its price increased, many traders tried to sell assets. The continuous cycle of short contracts triggered a short squeeze, which in turn stimulated consumer demand and fueled Chainlink’s momentum.
Scam or DeFi Market Leader
Chainlink coin has been in the spotlight lately crypto market. Thus, LINK recently entered the top ten cryptocurrencies in terms of market capitalization, and also became the market leader DeFi-assets according to CoinMarketCap. BeInCrypto previously reported that currency has been in line with a long-term uptrend since January 2019. Bulls first had to to work over level $ 4.0, from whom price bounced twice – in June 2019 and February 2020 of the year. but in July this barrier was successfully taken and the pair hastened the pace growth, having risen in price Total in 28 days by 107%.
However, the investment company Zeus Capital, like earlier considers, what token growth the use of cryptocurrencies appear new kinds tokens. They are may personify value or something intangible, like, eg, vote. Two… More LINK is a scam. Editorial staff BeInCrypto already reported on Tom, that it looks like Zeus Capital decided to crash the value of the coin by conducting active propaganda against the token.
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