Chainlink’s native token, LINK, recently experienced a significant downturn, dropping below the crucial $13 support level due to speculations 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 enjoying a “mild decoupling” from the rest of 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, marking its highest value since April 6, 2022. This recovery was fueled by a decrease in the supply of LINK on exchanges, falling below the 15% mark for the first time in approximately four years. Santiment’s analysis revealed that this decline in supply hinted at a decreased inclination to sell, indicating that investors have become more optimistic about the token’s potential for further gains.
Furthermore, the number of wallets holding more than zero coins is nearing its all-time high, currently sitting at 713.56k, which is only 6% below the peak. This significant increase in the number of LINK holders suggests a growing investor confidence in the token’s future prospects. As Chainlink solidifies its position as the 13th-largest crypto asset by market cap, these indicators are further reinforcing the renewed bullish sentiment surrounding LINK.
In addition to the positive market indicators, Chainlink has made significant progress in the integration of its services across various blockchain networks. Four Chainlink services have been integrated into seven different chains, including Arbitrum, BNB Chain, Ethereum, Optimism, Polygon, zksync, and Linea. This expansion showcases Chainlink’s commitment to bridging the gap between traditional finance (TradFi) and blockchain technology.
Last month, Chainlink announced its intention to support the virtual tokenization of Real World Assets (RWAs) on the blockchain. To enable cross-chain transactions and integrate capital markets and RWAs into the blockchain, Chainlink introduced the Cross Chain Interoperability Protocol (CCIP). This initiative demonstrates Chainlink’s dedication to expanding the usability and functionality of blockchain technology beyond the realm of cryptocurrencies.
Chainlink’s recent recovery and decoupling from the altcoin pack are indications of growing investor confidence in the token’s potential. With decreasing supply on exchanges, an increasing number of LINK holders, and the integration of Chainlink services into multiple blockchain networks, the future looks promising for Chainlink. As the cryptocurrency market continues to evolve, Chainlink’s presence as a bridge between traditional finance and blockchain technology positions it as a key player in the industry.
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