Chainlink Rival Band Protocol Surged 65% Overnight — 3 Reasons Why

Band Protocol (BAND), a rival blockchain network to Chainlink (LINK) — which is also at an all-time high — surged by 65%. Within 24 hours, BAND rose from $4.825 to $8, setting a new record high.

Three major catalysts appear to have triggered the rally of BAND, namely the DeFi (decentralized finance) boom, Coinbase listing and new partnerships.

The daily chart of BAND

The daily chart of BAND. Source:

DeFi boom

Since June 1, the total value locked in DeFi protocols increased from $1.04 billion to $4.47 billion. The valuations of DeFi-related project tokens has risen substantially as the capital involved in the DeFi space surged by more than four-fold.

Band Protocol, like Chainlink, is a blockchain network for oracles. DeFi protocols rely on oracles to retrieve market data, as they cannot access raw data from other blockchains or websites. As such, oracles are critical to the success of DeFi applications.

As the DeFi market is rapidly expanding, the demand for oracles is also increasing in tandem. DeFi projects technically could make their own oracles but it requires time and resources to develop them. That is where oracles like Band Protocol and Chainlink come in.

Chainlink, similarly, has seen a strong performance over the past month. Since July 6, the price of LINK rose from $4.74 to $9.6, by more than 100%.

Coinbase listing of BAND

On Aug. 5, Zach Segal, the head of listings at Coinbase, said Coinbase Pro would list Band Protocol. The official Coinbase Pro account said it would list BAND by August 10, as long as liquidity conditions are met. The Coinbase Pro team said:

“Mon, Aug 10, our BAND-USD, BAND-BTC, BAND-EUR & BAND-GBP order books will enter transfer-only mode, accepting inbound transfers of BAND in supported regions. Orders cannot be placed or filled. Trading will begin on/after 9AM PT the following day, if liquidity conditions are met.”

Within one hour, the price of BAND surged from $5.6 to $8, after the Coinbase Pro listing was announced. Many cryptocurrencies…

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