Chainlink’s native token, LINK, recently experienced a significant downturn, briefly dipping below the crucial $13 support level. This decline was primarily due to speculation surrounding the potential rejection of the spot Bitcoin ETF by the US Securities and Exchange Commission (SEC). However, the latest data suggests that LINK is now experiencing a “mild decoupling” from the altcoin market as its ratio on crypto exchanges hits a 4-year low.
Over the weekend, LINK witnessed a mini breakout, surging to $15.82 for the first time since April 6, 2022. Contributing to this positive momentum, the supply of LINK on exchanges fell below the 15% mark for the first time in roughly four years, as revealed in Santiment’s recent analysis. This indicates a decrease in the selling pressure and highlights investors’ optimism for further gains.
Furthermore, the number of wallets holding more than zero LINK coins is nearing its all-time high, standing at a mere 6% below the peak. Currently, there are approximately 713.56k wallets holding LINK. These indicators point to a renewed bullish sentiment and growing investor confidence in LINK, which currently holds the 13th-largest position in terms of market capitalization.
Chainlink has been actively expanding its services by integrating with various chains. According to recent announcements, four Chainlink services have been integrated across seven different chains, including Arbitrum, BNB Chain, Ethereum, Optimism, Polygon, zksync, and Linea. These integrations further strengthen Chainlink’s position as a reliable oracle provider, enabling seamless cross-chain transactions and bridging the gap between traditional finance (TradFi) and blockchain technology.
As part of its efforts to bridge the gap between TradFi and blockchain, Chainlink has revealed its intention to support the virtual tokenization of Real World Assets (RWAs) on the blockchain. This initiative aims to bring real-world assets onto the decentralized ecosystem, expanding the use cases and potential of blockchain technology. Chainlink had previously introduced the Cross Chain Interoperability Protocol (CCIP), which plays a crucial role in integrating capital markets and RWAs into the blockchain.
Chainlink’s recent recovery and positive market performance indicate a growing sense of investor confidence in LINK. The decreasing supply on exchanges, increasing number of wallets holding LINK, and the integration of Chainlink services across multiple chains all contribute to this bullish sentiment. Furthermore, Chainlink’s focus on bridging the gap between TradFi and blockchain technology through initiatives like the tokenization of RWAs showcases its commitment to expanding the utility and adoption of blockchain technology. As the cryptocurrency market continues to evolve, Chainlink’s position as a reliable oracle provider and its efforts in improving blockchain interoperability make it an asset to watch out for in the coming months.