- Chainlink has moved up among projects with the highest development activity this month.
LINK is changing hands near $12.30 – a height that acted as crucial support earlier this year.
As a seasoned crypto investor who witnessed the rise and fall of many digital assets, I must admit that Chainlink (LINK) has been one of my most intriguing investments this year. The potential of Real-World Asset (RWA) tokenization, with its promise to bring liquidity to illiquid assets like real estate, is truly revolutionary.
This year, Chainlink [LINK] has garnered significant attention among cryptocurrency projects, primarily due to the excitement surrounding the concept of tokenizing real-world assets. Essentially, tokenization involves representing physical assets digitally on a blockchain for trading purposes.
Through this conversion, illiquid assets like real estate can be able to attain liquidity.
In simpler terms, Chainlink’s oracle services are essential for tokenizing Real-World Assets (RWA) as they ensure accurate data transmission between the actual assets and decentralized apps. This process, known as tokenization, has been gaining significant attention lately, which in turn strengthens the relevance of Chainlink (LINK).
RWA tokenization as a bullish driver
In a recent post on X, Chainlink cofounder Sergey Nazarov reasserted his belief that asset tokenization will transform the Web3 industry.
Nazarov firmly believes that the worth of Reliable Wholesale Assets (RWAs) could surpass that of cryptocurrencies over the coming years, given the potential inflow of value from conventional financial systems.
Chainlink has taken up Nazarov’s visionary prediction about the swift expansion of tokenized assets. This growth is anticipated to be fueled by increased institutional interest and positive regulatory advancements.
According to a summary report on the worldwide tokenized asset sector, Chainlink predicts that the market value for tokenized assets could surge to an astounding $10 trillion by the year 2030.
Chainlink stands ready to capitalize on this possible transition due to its Cross-Chain Interoperability Protocol (CCIP), which became widely accessible in April 2024.
Using an open-source communication protocol allows developers to create secure apps capable of exchanging tokens, messages, or a combination of both, even between various blockchain networks.
Robust development activity
In the past month, Chainlink has experienced a significant increase in development activity, placing it second among blockchain projects, according to recent data from Santiment. This represents an improvement from its fourth place position in the previous update.
In simpler terms, we consider development activities as indicators of a network’s expansion, which suggests a positive perspective for the project’s future prospects over the long term.
Last week, the Chainlink non-circulating supply wallet unlocked 18.125 million LINK that was deposited into Binance.
The deal was the ninth instance where onchain monitoring tool Lookonchain observed an unlock event, with seven out of these nine instances followed by a price increase approximately one month later.
LINK/USD technical analysis
Currently, the price of Chainlink (LINK) is significant at approximately $12.30, marking a decrease of 18% since the start of the year, and falling over 76% from its peak in May 2021.
Over the past week, LINK has been moving above a lengthy downward trendline on its daily chart, following a breakout that occurred on September 18th. The LINK to USD exchange rate currently finds support both in the immediate term at around $8.09 and in the long term at approximately $5.68.
On September 10th, the Moving Average Convergence Divergence (MACD) indicator within the daily chart crossed its signal line, implying a potentially strong uptrend or bullish momentum. Since this crossover, there have been numerous green bars in the histogram, which further reinforce the increasing positive momentum.
Beyond simple trading, the amount of Chainlink contracts locked in future markets has been steadily increasing this month, suggesting growing investor enthusiasm for the asset.
The amount of U.S. dollars tied up in open futures agreements linked with LINK, as per CoinGlass data, has risen by approximately 10.55% within the past day, totaling around 15.46 million LINK at this moment.
Interest in futures contracts frequently mirrors increases in speculative action and predictions about price fluctuations.
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2024-09-26 10:16