This week, we asked our community what their most profitable investment on the Voyager platform was. Unsurprisingly, Voyager Token (VGX), which is up more than 200% this month, and Chainlink (LINK), which has gained nearly 600% over the last year, were the most popular responses.
VGX met resistance this week, dropping 13% over the last seven days. Still, LINK continued its parabolic streak, reaching a high of $18.35 Thursday and bumping Bitcoin Cash from the top five cryptocurrencies by value on CoinMarketCap.
Over the past few months, Chainlink has surged along with other DeFi projects like Compound (COMP) and Tezos (XTZ). In a recent report, the Block found that DeFi website traffic has also increased significantly as popularity in the emerging industry has grown. For example, SimilarWeb showed 80,000 visits for Compound in April. By comparison, that number grew to about 540,000 in July after reaching 480,000 in June.
The spike in DeFi popularity may be partly due to the increased interest in staking, particularly yield farming, which lets investors earn maximum rewards for lending their crypto to the network to provide liquidity. According to Forbes, Chainlink may start offering staking soon, which could be contributing to its recent price movement.
Even as DeFi continues to grow and show promising real-world applications, it's important to remember that not all projects are created equally. For example, a new yield farming project emerged this week called YAM.
Within hours of YAM launching, the Yam platform accrued over $400 Million in deposits and staking, then within minutes, the token’s value fell from roughly $60 million to zero when a bug was discovered in the code. This staggering experiment all took place in less than 24-hours. DeFi and yield farming projects like YAM are basically a high-risk economic experiment, that some affectionately call memeconomics.
While many YAM investors got absolutely roasted, it’s expected for many similar projects to pop up in the near future, as the DeFi hype rages on. Stay safe & always protect your precious crypto!
Inside Crypto: Chainlink
As part of our Inside Crypto series, Voyager takes a deep dive into Chainlink. We explain what an oracle network is, how Chainlink connects smart contracts to real-world data, its recent announcements, and more. Read now.
Ethereum Miners Cash In
According to Coindesk, Ethereum miner's daily profitability is at $5.8 per 100 megahashes second (MH/S) of computing power, the highest level in more than two years.
The increase in profitability comes as Ethereum (ETH) surges in price and DeFi tokens on the network gain popularity. As a result of the rise in transaction fees, most Ethereum mining equipment can now operate with a profit margin above 90%.