As global cryptocurrency markets enter a period of downturn, with Chainlink (LINK) witnessing a 4% drop, a silver lining seems to be emerging on the horizon. Collateral Network (COLT), an innovative platform in the decentralized lending sphere, has been bucking the trend with a 40% price pump in the past few weeks. Let’s take a closer look.
Chainlink (LINK) Price Falls 4%
Chainlink (LINK) is a decentralized oracle network, and its job is to supply real-time data to ‘smart contracts’ on the Ethereum blockchain. Chainlink’s system is designed with a blend of elements working on and off the blockchain to make sure the bridge to smart contracts is dependable and free from manipulation.
Chainlink made its entrance in 2020 and quickly rose to the top of the DeFi (decentralized finance) market, peaking at a staggering price of $52.88 in 2021. Chainlink has seen its price go down to a current price of $6.40, with the price falling 4% in the last week.
This decline isn’t unique to Chainlink; the entire crypto market has been experiencing a cool-down period. However, the fact that Chainlink is yet to be widely used in real-world applications also plays a part in this dip.
Crypto market watchers point out that Chainlink’s price has been oscillating between $5 and $10 for nearly a year. Breaking the $10 mark could potentially put Chainlink back on track toward its previous high. But this isn’t likely to happen immediately, and it might take a FOMO-induced bull run to push it to that level.
Collateral Network (COLT) Sees 40% Returns
At the same time, crypto market sentiment is still bullish for projects such as Collateral Network, which has seen its price grow by an impressive 40% in the last few weeks. This kind of performance could be indicative of a larger trend showing that investors are looking for projects that are set to disrupt traditional industries.
Collateral Network is a Web3 platform where people can lend and borrow from each other using physical items as collateral. You don’t need to go through the conventional process of a credit check or fill in piles of paperwork. It’s as straightforward as it gets.
But Collateral Network goes one step further. The physical items, whether that’s a Rolex watch or painting, are transformed into NFTs, which is a unique representation of that item on the blockchain.
Then, the watch-as-NFT is divided into numerous fragments, like a digital pie cut into multiple slices. This allows more than one lender to contribute with liquidity, making the process smoother and enhancing the money flow on the Collateral Network platform.
Collateral Network relies on smart contracts to autonomously carry out complex tasks like setting interest rates and defining repayment conditions, eliminating the need for lenders to keep an eye on due dates or wait for payment confirmations.
The backbone of the Collateral Network platform is its own digital currency, the COLT token. Holding this token comes with a plethora of benefits, like lower borrowing rates, fee reductions, early bird entry to auctions of valuable assets, and rewards for holding onto the tokens.
Market analysts believe that Collateral Network (COLT) has the potential to stake a claim in the multi-trillion-dollar lending industry, with bullish analysts suggesting that its token could experience exponential growth of 3500% from its current presale price of $0.014.
Find out more about the Collateral Network presale here:
Website: https://www.collateralnetwork.io/
Presale: https://presale.collateralnetwork.io/register
Telegram: https://t.me/collateralnwk
Twitter: https://twitter.com/Collateralnwk
