Chainlink and Uniswap – Here’s the caveat to these ‘$30 altcoins’
Investors primarily favor Bitcoin and Ethereum. Always have and perhaps, always will. However, of late, some of that interest has been moving into the market’s altcoins. And for that very reason, this pair of altcoins appears to be a hot choice for investment.
The $30 altcoins
Chainlink today finally broke the 3-month-old barrier of $30 as it traded at $31.1 at press time. Uniswap breached that same price level 2 days ago, before the SEC’s investigation into Uniswap Labs induced some corrections.
Even so, both these altcoins have been faring fairly well as this week alone, LINK rose by 22.86% while UNI was up by 17.42%.
For LINK, this marked an almost 50% recovery since the crash from its ATH of $52.
However, price actions notwithstanding, investors have been facilitating bullish behavior too. Daily transactions for the altcoins were around 4k for UNI and 12k for LINK. At the same time, buying and selling have also been strong for both cryptos.
In fact, order books seemed to be showing that there is a 200k UNI higher demand for buying. On the other hand, sell orders for LINK stood at 1.5 million LINK.
But, is the network a good bet?
At the moment, the networks appear to be in a good shape as well. The MVRV ratio hit a 4-month high for both LINK and UNI. And yet, Chainlink has enjoyed better development activity than Uniswap, despite all the upgrades to its network.
However, the matter of concern for investors comes when you look at ownership, which is dominated by whales. Due to both these altcoins being whale-dominated tokens, they are always susceptible to flash crashes.
Any time whales decide to dump their holdings, retail investors will face the heat since they will bear the most losses during such price falls.
Thus, it would be smart to be wary and research well before entering any of these crypto’s markets.