LINK cryptocurrency is actually a token.
In fact, although it is now in ninth place for market capitalization among the more than 5,700 cryptocurrencies listed, it is Chainlink's ERC-20 token and is issued on the ethereum blockchain.
After Tether (USDT), it is the second ERC-20 token by market cap, as its 350 million LINK tokens are now worth around $ 2.7 billion in total. There are much better known cryptocurrencies with a much longer history that have a lower market cap: Binance Coin, EOS, Stellar, Tron, Monero, etc.
The fact is that since it was placed in the cryptocurrency markets in September 2017, its value has increased more than 40 times, from less than $ 0.2 to almost $ 8 in just under three years.
In fact, until April 2019, the price had not moved much, it only doubled in value in less than two years.
But from May 2019 it started to increase significantly and very quickly.
The first peak was in late June 2019, when it touched $ 4.3, a gain of more than 2,000% since September 2017. However, the price fell back below $ 1.6 in September 2019.
The price remained below $ 4 until February 2020, when it rose to a new high of $ 4.7 just before financial markets collapsed in mid-March 2020.
However, after dropping below $ 2, it started to climb again, returning to $ 4 in May 2020, and then took off again in July to hit a new all-time high of $ 8.6.
LINK is a utility token used to pay for the services provided by Chainlink. Chainlink in turn is a decentralized oracle service capable of providing useful, trustworthy, secure and trustless data to various blockchain protocols, but also to traditional financial structures.
It is particularly used in DeFi, so much so that the comparison between the LINK price curve and the volume of funds frozen in DeFi protocols reveals a certain correlation, especially in 2020.
The key point is the ability of Chainlink oracles to bring data from the outside world, but decentralized and without trust, to DeFi protocols. For this reason, Chainlink oracles are by far the most widely used oracles for these purposes.
As a result, since you have to pay LINK tokens to use these services, your demand in the market is growing and may grow even more in the future.
Certainly, this increase in demand was followed by financial speculation, which rushed to trade on LINK when its volatility increased significantly.
Just think that until June 2019, trading volumes on LINK token exchanges were practically irrelevant, and were irrelevant again from July 2019, staying that way until February 2020.
It is clear that the trading volume of this token is linked to the volatility of its price, having touched the maximums not by chance at the same time as the maximum value peak.
Therefore, there are two main dynamics, the first based on the fundamental use of the token and the other on financial speculation. The result has been truly remarkable growth that has generated exceptional returns.