Chainlink (LINK), native token of the oracle network and the largest oracle project, has skyrocketed over 30% in the past 24 hours. Chainlink has now overtaken Bitcoin Cash as the 5th-largest crypto by market cap. Activity like this is known throughout the crypto community as a “flippening.”
Flippening Alert: $LINK now has a larger market cap than $BCH.
— Cameron Winklevoss (@winklevoss) August 13, 2020
A “flippening” occurs when a crypto project, usually in the top 5 by market cap, overtakes another and steals its position. At the time of writing, data from CoinMarketCap shows the market cap of LINK at $5,77 billion, compared to BCH’s $5,22 billion.
LINK has experienced an enormous rise this year, having climbed from $1,80 in January 2020 to $17,51 at the time of writing. The surge in price has been driven by the increased popularity of Decentralised Finance (DeFi). This has caused most DeFi related projects to explode, with LINK having the largest rally.
There is still, however, an extremely large valuation gap between the oracle projects, in terms of market cap. LINK is the largest oracle project by market cap at $5,77 billion. Brand Protocol, is the second largest oracle project, with a market cap of $302 million.
Timothy Peterson, a chartered alternative investment analyst, believes that LINK could be valued at $32 by the end of 2020, but mentions that this price would not be sustainable in the long term.
Did some quick analysis of #chainlink's network growth rate and historical deviations in price put $LINK at $32 by end of year, but that price would not be sustainable. Investors who buy at high levels risk losing 50% of their investment or more. Most growth priced in already.
— Timothy Peterson (@nsquaredcrypto) August 9, 2020