Chainlink Market Update: CoinMarketCap faces Chainlink-related backlash, LINK/USD continues recovery
- CoinMarketCap recently listed Chainlink (LINK) as the largest DeFi token by market capitalization.
- Some experts have argued that LINK is not a DeFi token and criticized CoinMarketCap’s listing methodology.
- The ranking firm has defended its methodology and denied accusations that the listings were fixed.
- LINK/USD bulls retained control for the second straight day.
Cryptocurrency ranking firm CoinMarketCap (CMC) has been facing criticism from the community after it listed Chainlink (LINK) as the largest DeFi token by market capitalization. Several experts have argued that LINK is not strictly a DeFi token. Analyst Jason Fernandes took to Twitter to comment on the matter. He mockingly added that Binance Coin would become the second biggest DeFi token on CoinMarketCap’s website next week.
Chainlink is now the number 1 defi token thanks to coinmarketcap deciding its a defi token and adding it to the list. Tune in next week when Binance coin becomes the second biggest defi token. https://t.co/ccrVBqp06H #CryptoCurrency (from Reddit) pic.twitter.com/idmrFHdHBL
— Jason Fernandes (@TokenJay) July 20, 2020
According to a Cointelegraph report, Gerald Chee, the Head of Research at CoinMarketCap, said that the firm employs “strict methodology” to decide if a particular token qualifies as “DeFi” and if it is eligible for inclusion in its rankings. CMC has denied accusations that its rankings were fixed or that its methodology was biased. Chee further added:
The criticism that ‘Chainlink may have paid CMC to get this category up’ is baseless and unfounded. We refute any suggestion that a project was behind the creation of our classification page, and we once again stress that CMC has never received any compensation towards the listing of any token or exchange.
LINK/USD daily chart
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LINK/USD bulls retained control of the market as the price went up from $7.326 to $7.493. It managed to chart an intra-day high of $7.64 but has since retreated from the $7.60 and $7.50 price levels. The bulls will want to push the price up to $7.75 to hover above the triangle formation.
Beyond that, the price faces two strong resistance levels at $8.136 and $8.65. The latter is especially significant. As shown in the chart above, the price had previously failed at the $8.65 level and dropped considerably. On the downside, LINK/USD has healthy support at $7,24, $6.85 (SMA 20) and $6.515. The MACD shows increasing bearish market momentum.
Author
Rajarshi Mitra
Independent Analyst
Rajarshi entered the blockchain space in 2016. He is a blockchain researcher who has worked for Blockgeeks and has done research work for several ICOs. He gets regularly invited to give talks on the blockchain technology and cryptocurrencies.
