Could Chainlink benefit from any short-term Bitcoin decline?
Today Yashu Gola at NewsBTC goes over some of the support for better Chainlink prospects in the future, citing early European trading increases today, where LINK went up 15%, with support around $19-$20. Other altcoins like AAVE and SushiSwap have also gained.
But some of the most exciting news for some traders is Chainlink’s possible addition to the Grayscale collection of trust funds.
For a while now, we’ve been citing Grayscale’s Bitcoin investment trust as one of the easiest ways to get exposure to the Bitcoin market without actually buying coins.
It appears that in light of an altcoin season, with Bitcoin becoming “choppy,” as Gola puts it, Chainlink and others may be added to Grayscale’s stable.
“Grayscale Investments could be set to launch a raft of new products including a Chainlink trust, if freshly unearthed filings are to be believed,” wrote Joshua Mapperson at Cointelegraph Jan. 22. “According to the State of Delaware’s Division of Corporations, someone set up Grayscale Chainlink Trust on Dec. 18, 2020. On the same day, a Basic Attention Token (BAT) trust, Decentraland (MANA) trust, Livepeer (LPT) trust and a Tezos (XTZ) trust were also initiated.”
That wider group of trust instruments could signal various things, including a broader appetite for other crypto assets than BTC by traders, or, alternately, a promotional aspect for these kinds of assets on the part of exchange parties.
All of this as analysts like Gola point out that current BTC behavior may act as a catalyst:
“Bitcoin established a strong support level of around $30,000, but it has been trading choppily above it,” Gola writes. “That has raised the demand for alternative digital assets, especially in the DeFi space. Data from Dune Analytics show that the total amount locked in the DeFi liquidity pools has ballooned towards $24 billion.”
Follow the Grayscale plans for a look at where defi is going in the future. The major broker and exchange facilitator can basically write its own imprint on crypto markets.
