Following the price jump, Link surged 18% to reach a price of $36.35, the highest the coin has recorded since May 19. XRP, Dot, and Litecoin also surged, sparking an altcoin rally.
Smart contracts contribute to the rise
Investors are believed to be buying altcoins because of their low price and smart contract capabilities. Altcoins can also support decentralized financial options. A smart contract is a code on a blockchain that allows traders to make financial agreements without the involvement of a third party, such as a bank or broker.
Thanks to smart contracts, blockchain-based networks like Ethereum can host more than just cryptocurrencies. Smart contracts allow networks to host NFTs and incorporate different layers of software. The Bitcoin network is much more expensive and cannot handle these types of applications.
Alternatives to Bitcoin
Bitcoin may still be the largest cryptocurrency by value, but it has fallen behind many altcoins in recent weeks.
Head of data analytics at broker CEX.IO Yuriy Mazur said:
What makes Bitcoin less popular is its high cost and closed nature compared to Ethereum and other smart contract-enabled altcoins.
OANDA senior market analyst Edward Moya explains:
The crypto community believes that altcoins can rise 5X or even 10X in the coming months. Bitcoin, on the other hand, will be slow to move up.
As part of the altcoin price rise, Link made the biggest gain. The coin rose nearly 18% in the last 24 hours, reaching a high of $36.35. That’s the biggest increase since May 19. Meanwhile, Bitcoin saw an increase of just 1.65%. Link is up 45% in the last month, while Bitcoin is up just 15%.
Mazur went on to say:
At this rate, we can see the digital token rise to $50 in about 14-21 days. There may be corrections along the way, but growth is more likely at this point.
Chainlink is the company behind the Link token. It offers smart contracts similar to those on the Ethereum network. Past Week, a tweet from Chainlink said a record 76 new network integrations took place in August.
About Link, Mazur said:
The growth seen in the last month has highlighted the relevance of the token. As the first network to integrate off-chain data into smart contracts, it is leading the way.
Other blockchain networks have also seen an increase recently. XRP rose nearly 8% to $1.37 and Dot reached $34.25, up 2%.
The favorites among crypto enthusiasts right now are Cardano’s ADA and Ethereum’s Ether. Both coins have shown promising trends recently and are both going through hard forks, according to Mazur.