Chainlink (LINK) can currently resist the falling market. The Bitcoin price has dropped another 1,000 USD since yesterday and has now dropped below the 8,000 USD mark. This movement has maneuvered the entire market into a bloodbath. Especially the Altcoins had to accept enormous losses. But one of the top performers of the last weeks and months was able to hold his ground even in this difficult phase. We are talking about Chainlink and the LINK token, which was able to assert itself against the strong selling pressure of the last few days.

Is there a hype about Chainlink?

The hype around Chainlink should be felt by everyone by now. It is slightly reminiscent of 2017, when every project was subject to similar hysteria and prices shot up irrationally. But it's different with Chainlink, isn't it? Certainly Chainlink has been able to position itself in an important area in recent months - decentralised oracles. This is above all an extremely important use case for the emerging area of Decentralised Finance (DeFi). So there do seem to be sound arguments why Chainlink is currently on everyone's lips and has such a high valuation.

This is of course only one side of the coin. The usecase of the LINK token is clear, of course, but does the current Chainlink price have any relation to the actual use of the token within the system? Probably not at all. Like most crypto projects, the price is based on a lot of speculation, which prices a possible positive future early on. The price increase has nothing to do with the actual usecase of the token. This must be clear to everyone at this point in order to better assess one's own risk if one already has or is planning an investment in Chainlink.

Chainlink dependency to Bitcoin

All hype fades at some point. At the latest when the Bitcoin price should fall further, even the last Altcoin will suffer from the sale. Because in the end the entire market holds and orients itself to the movement of the Bitcoin price. No wonder if the Bitcoin dominance is over 63%. Currently, many people are simply fleeing from BTC or Altcoins into the project, which they expect to achieve the highest returns in the short term. This is without question Chainlink at the moment, because from the hype level it is certainly at the very top.

The question at this point is how the Bitcoin price will continue to behave and whether the hype is big enough to stand up to the falling market. Chainlink is a project that has managed to fill a niche within a niche. It remains to be seen whether this will be enough in the long run to maintain or even increase the price. It is important not to take any rash steps at this point and not to let FOMO (Fear Of Missing Out) guide you.