Chainlink Cryptocurrency is Up 100 Percent YTD; What’s Behind the Intense Rally?

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Chainlink has beaten bitcoin while emerging as one of the most profitable assets in the cryptocurrency, as well as the traditional market, in 2020. Demand for Chainlink’s LINK token has gone up after a US-based venture capital firm has backed its use to offer collateral to dwindling stablecoin DAI. LINK has broken above crucial resistance areas and is looking to extend its uptrend. However, there are some risks. Chainlink’s native cryptocurrency LINK has rebounded by more than 180 percent from its mid-March lows, beating top assets including Bitcoin and Ethereum. The LINK-to-dollar exchange rate topped at $3.84 on Saturday as ParaFi Capital, one of the venture firms backing popular DeFi platform MakerDAO, proposed to collateralize its stablecoin DAI using the LINK cryptocurrency. The firm noted that LINK brings an attractive “market cap, liquidity profile, and appetite for speculation,” which could assist DAI in maintaining its US dollar-peg. “For context, lending…

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