Buying spree for LINK and LEND as DeFi drives interest

By Aubrey Swanson·26 June 2020·2 min read

Key Points

While Bitcoin and Ethereum trade sideways this week, some of the smaller tokens are on the move.
Chainlink, Aave, and 0x are all climbing, with whale accumulation driving much of the surge.

While Bitcoin and Ethereum trade sideways this week, some of the smaller tokens are on the move. Chainlink, Aave, and 0x are all climbing, with whale accumulation driving much of the surge. Compound's COMP and Balancer's BAL have soared, turning investor focus to decentralized finance and yield farming over the past week. But the action extends beyond these two tokens. Santiment's metrics show that whales have been stacking positions in Aave, Chainlink, and 0x for several weeks.

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0x presents the clearest on-chain picture. ZRX trades at $0.338 per dollar, down fractionally from yesterday. This week, daily on-chain volume hit a new all-time high of $104 million, representing 300.3 million tokens changing hands. The price now sits above its historical resistance zone of $0.25 to $0.30. A break above $0.35 could open a path to $0.50. In the past 24 hours, $17.5 million of ZRX moved through exchanges.

Chainlink's whale activity tells a different story. The count of large LINK holders grew 5% over the past week, according to Santiment, with 15 fresh addresses now holding 100,000 to 1,000,000 tokens. Those buyers appear to be companies implementing Chainlink's oracle technology to bridge data from legacy databases to blockchain platforms. LINK jumped 10% on Wednesday to reach an all-time high, a move that stood out against Bitcoin and Ethereum weakness. The token has retreated since then, but further gains could emerge in coming weeks.

Aave's LEND token has made the biggest move of all three. After starting the year near $0.015, it gained more than 130% in June alone to reach $0.164, before settling at $0.125 today. Daily on-chain trading volume has expanded from $0.5 million to over $3.4 million.

Compound controls the DeFi sector with $650 million locked in its protocol. Aave ranks fourth with $115 million. These tokens tap into the same yield farming trend that gave Compound its lead.

MiningPool content is intended for information and educational purposes only and does not constitute financial, investment, or legal advice.

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