Chainlink and Cardano are the most prominent of the decoupling of altcoins from Bitcoin. Bitcoin’s dominance has decreased by around 3% so far in July.
For several months now, Bitcoin has been in a lateralized market, a situation that occurs when the price of the cryptocurrency does not show a clear bullish or bearish trend, fluctuating in a certain range. Since the beginning of May, days before the third halving, the price of BTC has fluctuated between USD 9,000 and USD 10,000.
Meanwhile, the scenario in the altcoin market presents some price variations, with a greater bullish bias than BTC in the past few days. This occurs although the price of cryptocurrencies in the market usually follows the trend of Bitcoin.
The coupling of altcoins with BTC is due to the dominance that the pioneering cryptocurrency has always exerted in the market. However, this dominance has recorded a decline in recent months. Consequently, Bitcoin is currently mobilizing 64% of the total cryptocurrency market capitalization, after having controlled over 70% in early 2020, according to data from TradingView.
In this way, while Bitcoin has only gained almost 29% so far in 2020 and has remained stagnant at the threshold of USD 9,000 for three months, some altcoins are breaking their resistance levels, leaving the market lateralization.
Some Highlights of Chainlink and Cardano
Among the altcoins with significant increases are Chainlink (LINK) and Cardano (ADA), in addition to Stellar (XLM), Siacoin (SC), Stratis (STRAT), NEM (XEM) and Dogecoin (DOGE).
Of this group of cryptocurrencies, the most prominent is LINK, which achieved an appreciation of more than 30% between July 6th and 8th. The twelfth-largest cryptocurrency by market value reached a record high of USD 6.47 on July 8th. In this way, it breaks the lateralization that had kept its value between USD 2.40 and USD 4.80 since April 2020.
This decoupling between BTC and LINK is the result of increased use of the token in the decentralized finance (DeFi) space, according to Vance Spencer, one of the biggest private owners of Chainlink and co-founder of Framework Ventures.
Likewise, the platform’s official Twitter account has announced at least two partnerships with DeFi companies every week in the last two months. Chainlink is a platform that bridges smart contracts and non-blockchain services such as bank accounts and data servers.
Cardano is another example of the decoupling of altcoins from Bitcoin. The cryptocurrency, which ranks sixth by market capitalization on the CoinMarketCap list, has been at the top of the most appreciated cryptocurrencies in recent weeks.
The price of ADA has gained more than 260% so far in 2020, making a significant jump since May, when the announcement of the future update to Cardano’s mainnet, Shelley, came.
In the context of altcoins growth, Bitcoin is marching at the same pace as the S&P index, and global stock markets feel concerned about COVID-19 threatening economic recovery. For its part, gold is approaching its all-time high in nine years, due to the reception of monetary flows that make users see it as a haven.
By Willmen Blanco
