1. PixelPlaygroundHome
  2. Web3 News

Why is the Link coin plummeting (Link Coin Zhihu)

• Web3 News • 84 views

Why is the Link coin plummeting? Editor\’s note: This article is from BlockBeats

Why is the Link coin plummeting (Link Coin Zhihu)

Why is the Link coin plummeting? Editor’s note: This article is from BlockBeats (ID: blockbeats) and was written by 0x22. It is published with authorization from the Planet Daily.

In the past week, the price of LINK coin has plummeted by about 30% and is currently trading around 0.038 USDT, still far from its all-time high. However, the price of Link coin has not shown any significant increase.

Why is the Link coin experiencing such a large drop? According to data from CoinMarketCap, among the top 20 tokens in terms of market capitalization, besides Link coin, other tokens with a market value exceeding $20 billion and nearly $1 million have also experienced similar significant declines. For example, the recent surge of Link was very fierce, reaching a price of almost $0.015 per coin, but it has now been cut in half. On the other hand, the recent performance of Link coin has been even more dismal. As of the time of writing, it has only increased by less than 20%. Most of the projects in the top 50 rankings are altcoin projects.

Therefore, many people consider LINK to be one of the biggest downward trends in the cryptocurrency market. From this perspective, Link coin is actually a typical representative because it has a close connection with the traditional financial market. Without discussing blockchain technology, there is no need to consider Link as a universal underlying protocol. Instead, we should consider its issuance mechanism and its core value behind it.

First of all, Link is an open-source network that anyone can run and be rewarded for. Although the official announcement did not specify the exact date for the launch of any new projects, Link can help establish an ecosystem of applications based on internet connections, such as social applications, e-commerce platforms, and other niche areas, making these services simple and user-friendly. Secondly, Link has its own incentive mechanism to reward those who contribute to the network. In addition, Link can encourage more people to join the network and provide additional incentives to network participants to ensure network security. Finally, Link achieves cross-chain interaction through smart contracts, allowing everyone to transfer funds and transaction data information between networks.

Link Coin Zhihu

Editor’s note: This article is from Zhihu and was written by Lin Jiawen. It is authorized to be reprinted by Odaily Planet Daily.

The introduction of Link coin is based on the Ethereum blockchain token LINK. It is a digital asset with the same value as traditional currency. Link is an ERC-20 standard token (representing universal code in network protocols). LINK operates on the blockchain and can provide services for various decentralized applications (DApps). Its mechanism is similar to mainstream cryptocurrencies such as Bitcoin and Litecoin.

For LINK, it is currently one of the largest tokens in the world with a market capitalization of over $1 billion. According to the latest data, nearly 40 projects have received at least $4 million in investments since May 2018. If calculated based on market price, the growth rate in 2019 will reach about 30%-45%, while the end of 2017 and the beginning of 2019 reached historical highs of about 50% and 20% respectively. (Source link)

For an introduction to Link coin and its usage, click to read the original article “Understanding Link Coin on Zhihu”. To learn about the basic information of Link coin, please refer to the following articles:

1. What is LINK?

2. What is Link?

3. What is Link (LINK)?

4. Why do we need Link?

This article and pictures are from the Internet and do not represent Fpips's position. If you infringe, please contact us to delete:https://www.fpips.com/23179/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

Like (0)
Previous 08/11/2023 14:12
Next 08/11/2023 14:34

Recommended articles