Chainlink suffers losses as the token continues to follow the broader market wave of bearish pressure. According to Coingecko, the token is down 23% in the past 24 hours, representing a significant wipe in value after the price stabilized in the $13 to $14 price range.
The crypto market continues to be influenced by outside forces in the short to medium term, with the anxieties of private equity bleeding into the crypto market turning the correction into an absolute bloodbath.
What’s In It for Chainlink?
LINK’s niche of capturing and streaming price feed data to partners has been shaken by the recent groundbreaking market movements that have shown that the token fails to capture any value.
In a recent X post detailing recent developments that may 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 commercial bank money tokens (CBMT).
“Robots could be paid automatically for the work they perform for other companies or customers with the help of tokens,” noted the Proof of Concept (PoC).… pic.twitter.com/KqhV5CcNAh
— Chainlink (@chainlink) August 2, 2024
“What does any of this have to do with the $Link token? The token is what funded you guys from the very beginning to [the] present day. How is it capturing value?” a user on X said in their comment.
What does any of this have to do with the $Link token? The token is what funded you guys from the very beginning 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 the start of the month. Last week, Concero, a blockchain infrastructure platform, announced its selection of Chainlink’s CCIP for “secure cross-chain interoperability.”
Concero also joined Chainlink Build, a partnership program that grants them enhanced access to Chainlink services which guarantees the quality of the data stream they’ll receive.
Another addition to the Chainlink Build family is Rivalz AI, the “first AI intel layer”, which will help the latter in the security of its AI-driven data network. Since the Build program is a two-way street, Rivalz made 3% of its token supply available to Chainlink stakers and providers which is an enticing offer to would-be stakers on Chainlink.
However, sell pressure continues to plague LINK completely negating the attractiveness of the new additions to Chainlink’s growing Build program.
The platform also suffered a massive outflow of staked crypto. According to DeFiLlama, Chainlink suffered a 20% decrease in total value locked (TVL).
More Losses In The Short To Medium Term For LINK
At its current position, LINK will continue to face losses if the token falls well beyond its October 2023 level.
LINK bulls should keep defending the $8.3 support as this will enable them to secure better positions in the long term. However, the current environment of anxiety and fear will hinder efforts to retake lost ground.
Investors and traders should then exercise caution as the market might follow the downward spiral that started with the correction phase that started last week.
Featured image from Pixabay, chart from TradingView