Market

It would be remiss to have ETH in your portfolio without this altcoin

The altcoin season occurs when many altcoins follow their “big brother” ETH. Of course, the initial trigger came from ETH, but then most of the top coins continue to follow the same path regardless of ETH’s performance.

LINK is one of the few coins that is widely distributed during the altcoin season. From late March to mid-May, when most met ATH again, ETH rose nearly 185%.

LINK also follows the performance of ETH and has increased by almost 130% over the same period.

ETH / USDT and LINK / USDT | Source: TradingView

This time it’s the same because ETH has increased by 5% and LINK by 8% in 24 hours. While the two are highly correlated, it should be noted that there is one more key factor that LINK has always supported in order to maintain an uptrend on the chart.

LINK’s network performance has improved a lot over the past few months. June’s NVT high is today’s low, suggesting that network valuations are exceeding trading volume.

Historically high NVT values coincide with market peaks. The current growth rate also shows that LINK is at a reasonable level of development.

Looking at the ascending process of the indicator, it can be argued that there is still room for uptrends and that if the price of LINK hits its peak in the coming weeks, it will rise even higher.

The source: Glass knot

In addition, due to its similar profitability as ETH, LINK can attract investors, as the MVRV ratio projections show. A positive relationship usually indicates that an investor is making more than usual. This has been the case with both Coin and HODLer for some time.

In fact, investors trust LINK more than ETH in the long term. ITB data shows the average HODLer holding ETH for 1.5 years and LINK for 2.7 years.

The source: mood

Therefore, taking into account the current trends, it can be said that an investor will miss a lot of action if the portfolio is not LINK during the altcoin season.

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Minh Anh

According to AMBCrypto

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Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.