Why Record High $11B Inflow In DeFi Buoys Chainlink Momentum

Tony "The Bull" Severino

4 years ago

3 mins read

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The total value locked away in DeFi applications has breached over $11 billion and is still climbing. This record inflow of decentralized finance capital could continue to propel Chainlink’s bullish momentum further.

Here’s why this cryptocurrency central to DeFi data could surge higher alongside this rapidly skyrocketing statistic.

DeFi Inflows Peak Over Record $11 Billion, Trend Shows No Signs of Slowing Down

The DeFi movement has helped bring cryptocurrencies up from out of the bear market gutter and back into the limelight of the financial world. These newfound ways to access financial applications without a central authority required has enabled all kinds of new ways for crypto investors to maximize the value and return they get from holding.

Yield farming, liquidity pooling, and token swaps have replaced centralized exchanges, alongside traditional lending and borrowing. DeFi makes this all possible through Ethereum-based decentralized exchanges and applications.

The trend first picked up in early 2020 with Ethereum leading the charge and was later eclipsed by the fortunes made by Aave, Yearn.Finance, SushiSwap, and others.

At least at first. Compound and Maker who early on dominated the DeFi market in total value locked up have since succumbed to the popularity of Uniswap. The recent launch of free UNI tokens sealed the deal, propelling the platform to the top dominant liquidity pool in terms of TVL.

While UNI is doing well, and the rest of the DeFi space is still holding strong, there’s another cryptocurrency that could benefit from the continued increase in TVL locked away in DeFi applications. That altcoin is none other than Chainlink.

Total Value Locked In DeFi Reaches $11B | Source: DeFi Pulse

Why Chainlink’s Bullish Momentum Could Return Alongside Record Capital Inflow

DeFi applications and automated market makers like Uniswap require accurate price data so users are always getting current market values of whatever token they’re swapping.

These applications rely on oracles such as Chainlink to ensure there is no discrepancy in data reporting and that any connection made to it has exact parity in pricing data.

This technology earned Chainlink a nod from the World Economic Forum earlier in 2020, and is among the top reasons why the crypto asset has been soaring for two years since it was first minted.

And while whales may be calling for Chainlink FOMO to fizzle out, it could only just be getting started according to these rapidly growing DeFi metrics.

LINKUSDT Daily Bullish Momentum And Possible Bull Flag Pattern | Source: TradingView

Featured image from Deposit Photos, Charts from TradingView and DeFi Pulse

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

Tony is also celebrated for his literary contributions to the field. He is the author of the highest-rated Crypto Trading Journal on Amazon.com, a testament to his ability to communicate complex trading concepts in an accessible manner. This journal is widely regarded as an essential tool for traders aiming to track their progress and refine their strategies.

Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.

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