- Oracle tokens LINK and BAND continues heading higher despite a bearish correction phase in the rest of the crypto market.
- The rallies show traders’ growing speculation of the DeFi cryptocurrencies.
On a day when the cryptocurrency market is correcting lower, two Oracle tokens have moved in the opposite direction.
Decentralized Finance’s top assets–Chainlink’s LINK and Band Protocol’s BAND–grew higher on Friday and continued their uptrend into the early weekend session. The BAND/USD exchange rate, for instance, logged a 21 percent rally in the last 24 hours. LINK/USD, on the other hand, surged with a dwarfed 6 percent within the same timeframe.
LINK continues its parabolic rally on rising oracle demand. Source: TradingView.com
The oracle tokens rose as the rest of the cryptocurrency became less appealing for traders. Top cryptocurrency Bitcoin stayed lower upon correcting from its yearly high above $12,000. Meanwhile, other non-oracle cryptos merely tailed Bitcoin’s downside moves.
BAND and LINK sustained their uptrends owing to a growing hype around oracle solutions. Observers acknowledge their role in potentially bridging the gap between on-chain and off-chain data by sending and receiving information between blockchain apps and the real world.
Some see benefits in holding BAND and LINK tokens because of their active involvement in decentralizing oracles. LINK, for instance, is Chainlink’s payment and staking money. BAND operates similarly within the context of its Band Protocol.
“While none have quite developed the fervent community Chainlink has, many like Band Protocol have employed Chainlink’s strategy of announcing a ton of project integrations and partnerships. And they’ve been rewarded for doing so,” said Ryan Watkins, a researcher at data aggregator firm Messari.
The YTD performance of LINK and BAND currently stands at 488 percent and 3,918 percent, respectively.
Mainstream Oracle Adoption
Traders are shifting their capital into oracle tokens also as they secure listings at America’s leading cryptocurrency trading platform, Coinbase Pro.
The firm was already offering LINK trading. But on August 6, it further integrated Band–a relatively new oracle token– into its platform. Their announcement read:
“Mon, Aug 10, our BAND-USD, BAND-BTC, BAND-EUR & BAND-GBP order books will enter transfer-only mode, accepting inbound transfers of BAND in supported regions. Orders cannot be placed or filled. Trading will begin on/after 9AM PT the following day, if liquidity conditions are met.”
The integartion–or the mere promise of it earlier– played an essential role in pushing the BAND price up by 142 percent in just six days of trading.
BAND tops at $9.79 in its six-day winning streak. Source: TradingView.com
Kevin Svenson, an independent cryptocurrency analyst, noted that BAND’s rally would later reflect on LINK. He said that the Chainlink token continues to dominate the Oracle space. Excerpts from his latest tweet:
“The only reason other oracle projects like $BAND or $DOS are gaining in value is because of the speculative demand that #Chainlinkhas created for Oracles.”
DOS/USD is up 4,125 percent YTD.