Investors are always looking for lucrative new opportunities to boost their portfolios. Chainlink (LINK) has become a popular investment over the last month, hitting highs of $8.71 before declining to its current price of $7.39. As many investors question whether or not Chainlink (LINK) will rise in May, some are diversifying to a new DeFi project expected to rise by 3500% in the next six months.
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What is Chainlink (LINK)?
First released at the end of 2017, Chainlink (LINK) is designed to connect real-world businesses and blockchain platforms. Using Chainlink (LINK), DeFi platforms can access the latest external data, such as stock prices, market trends, and sports results. This significantly improves the practicality of DeFi.
LINK is the native token of Chainlink (LINK) and is used to pay operators who validate the accuracy of any data brought on-chain. At the time of writing, Chainlink (LINK) has increased in price by 4.64% after the Celo community announced it will join the Chainlink SCALE (Sustainable Chainlink Access for Layer 1 and 2 Enablement) program. This will help to accelerate the adoption of Celo’s ecosystem.
Despite this increase, Chainlink (LINK) has still declined by 0.53% in the past five days, causing many investors to diversify to an exciting new project.
What DeFi Project Are Chainlink (LINK) Holders Buying?
While investors remain uncertain about Chainlink , this new DeFi project is gaining momentum after increasing by 40% in the last few weeks. Known as Collateral Network (COLT), the project is designed to disrupt the crowdlending market with DeFi technology.
Collateral Network unlocks a plethora of new opportunities for people looking to borrow funds. Instead of taking out a loan or selling their assets to get money, individuals can liquidate their physical assets on-chain. The platform accepts a variety of physical assets, including art, real estate, fine wines, watches, and jewelry.
Collateral Network mints an NFT representing the borrower’s physical asset, which is stored in one of Collateral Network’s vaults. Each NFT is backed 1 to 1 by the asset and fractionalized in pieces so lenders can buy fractions of the NFT in return for a fixed interest rate. This rate is paid until the loan is repaid and allows lenders to generate a passive income.
If a borrower defaults on their loan, their asset will be sold in a private auction exclusive to Collateral Network token holders, who will be able to buy distressed assets for below market prices.
With some experts predicting that Collateral Network could revolutionize the asset-based lending market which is expected to hit $1.7 trillion by 2031, the project is expected to surge to $0.35 before the end of its presale, with further surges once COLT tokens are listed on major exchanges.
Conclusion
With Chainlink (LINK) growth looking unsteady, Collateral Network (COLT) is quickly attracting investors and is on track for another price increase in the next few weeks. As more investors buy, it’s only a matter of time until the price of COLT surges.
Find out more about the Collateral Network presale here:
Website: https://www.collateralnetwork.io/
Presale: https://app.collateralnetwork.io/register
Telegram: https://t.me/collateralnwk
Twitter: https://twitter.com/Collateralnwk
Source: https://www.cryptopolitan.com/chainlink-link-holders-are-diversifying-to-an-amazing-new-defi-project-heres-why/