The oracle-focused blockchain protocol, Chainlink, exceeded Bitcoin Cash to become the eighth-largest cryptocurrency as of January 18.
Chainlink’s market capitalization is now hovering at $9 billion and about $500 million away from the next largest crypto asset, LTC.
In the last 24 hours, the price of Chainlink grew by 13 percent and LINK’s momentum is possibly attributed to the positive sentiment around DeFi.
In recent months, the DeFi market as a whole has been rallying strongly, with AAVE and SUHI being the new standouts. The uptrend can be attributed to the Total Value Locked (TVL) quick-growing metric, which measures the amount of capital deployed through DeFi protocols. The TVL across DeFi protocols is calculated to be about $24 billion as of January 18, and it is still gradually rising.
The growth of the DeFi space benefits Chainlink because oracles feed vital market data to DeFi protocols. They get it from oracles like Chainlink and Band Protocol as DeFi protocols, such as lending sites or exchanges, fetch price data.
As such, when the DeFi market typically has more customers, oracles profit from the rising TVL of the DeFi market.