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The host of popular crypto channel Coin Bureau says Chainlink (LINK) price action is still moving upwards despite a bumpy past few months.<\/p>\n
In a new video, pseudonymous Coin Bureau host Guy\u00a0tells<\/a>\u00a0his 1.81 million subscribers that LINK was a hot altcoin early in 2021 but has cooled off in the latter half of the year.<\/p>\n \u201cDespite all of Chainlink\u2019s announcements, partnerships, updates, and developments, LINK is only up 50% since the start of 2021.<\/em><\/p>\n This is much less than just about every other cryptocurrency, and even some stocks.<\/em><\/p>\n So, what gives?\u201d<\/em><\/p>\n For starters, LINK is a DeFi [decentralized finance] token.\u00a0<\/em><\/p>\n DeFi was hot in 2020 and early 2021, but the hype has worn off over the last half-year or so.\u201d<\/em><\/p>\n Guy also explains how the team behind Chainlink has been selling LINK off, creating enormous sell pressure on the oracle altcoin.<\/p>\n \u201cThe Chainlink team has been selling millions of LINK to finance Chainlink\u2019s current operations and future expansion.\u00a0<\/em><\/p>\n Back then [before the team began selling LINK], LINK\u2019s circulating supply was around 400 million.<\/em><\/p>\n Today, LINK\u2019s circulating supply is slightly north of 467 million.\u00a0<\/em><\/p>\n Now, assuming an average price of around $20 per LINK, this works out to over $1.3 billion of sell pressure,<\/em><\/p>\n Which is honestly insane.\u201d<\/em><\/p>\n Guy then explains that this sell pressure is good for Chainlink\u2019s long-term price action but damaging in the short term.<\/p>\n Another driver of LINK\u2019s relative underperformance is its status as a \u201cspeculative investment,\u201d as Guy explains in detail.<\/p>\n \u201cLINK\u2019s primary use case is to pay for decentralized data feeds, which are required for almost every decentralized application to function.<\/em><\/p>\n In theory, this creates lots of demand for LINK, which should push up its price.\u00a0<\/em><\/p>\n But in practice, it had next to no effect because LINK isn\u2019t legal tender.\u00a0<\/em><\/p>\n As such, any LINK that\u2019s used to pay for data feeds is subsequently sold by node operators, and this selling pressure offsets the buying pressure created by the DApps [decentralized applications] which initially purchased the LINK.<\/em><\/p>\n Right now, the only demand driver for LINK is a speculative investment, and it looks like a lot of retail investors have taken their money elsewhere.\u201d<\/em><\/p>\n Despite the insane sell pressure and decline in retail investor funding, Guy still thinks LINK is posed to reach new all-time highs soon.<\/p>\n \u201cLINK is still in a clear uptrend, unlike many other cryptocurrencies that never fully recovered from the massive crash in May.<\/em><\/p>\n If this uptrend continues, Chainlink could reach new all-time highs in the coming months, assuming the bull market sticks around.\u201d<\/em><\/p>\n Chainlink<\/a> is trading at $20.22 at time of writing, down 1.51% on the day.<\/p>\n