- 54 new wallets bought $30 million in Chainlink in a single week, according to on-chain data.
- Chainlink’s CCIP, which improves blockchain interoperability, is one of the main forces.
- LINK price is staying the same despite a surge in supply, according to market analysts.
- Recently, institutional investors have purchased Chainlink (LINK) tokens for more than $30 million.
This large investment demonstrates how Chainlink’s technology is becoming more and more widely used and trusted in the financial industry.
LINK Price Is Stallled Despite Institutional Support
The on-chain analytics website Lookonchain reports that during the previous week, 2.08 million LINK tokens, worth $30.28 million, were removed from Binance by 54 new wallets. This suggests that institutional investors are very interested, probably as a result of Chainlink’s growing usefulness in the financial services industry and its compatibility with blockchain technology.
This interest is fueled, in part, by the Cross-Chain Interoperability Protocol (CCIP) developed by Chainlink. This protocol securely meets the cross-chain requirements of Web3 entrepreneurs and decentralized apps (dApps) by providing an easy-to-use interface.
CCIP facilitates the exchange of coins, data, or both in order to support externally owned accounts and smart contracts. This makes it easier for users to engage with different blockchains seamlessly.
Nine main blockchains are currently supported by Chainlink’s CCIP. Arbitrum, Avalanche, Base, BNB Chain, Ethereum, Kroma, Optimism, Polygon, and WEMIX are the nine blockchains in question.
Because it expands the functionality and breadth of Chainlink’s services, this expansion has been essential in drawing institutional attention. As an example, earlier in May, the Depository Trust and Clearing Corporation (DTCC) concluded the Smart NAV trial.
Ten market participants used Chainlink’s CCIP in this pilot to incorporate on-chain data into a range of blockchain applications. The pilot enabled the safe and effective transfer of net asset value (NAV) data, a critical indicator for mutual funds, by utilizing Chainlink’s decentralized oracle network.
Chainlink’s standing has also been strengthened by its alliances with a number of financial institutions. Banks including Deutsche Bank, Lloyds Bank, BNP Paribas, and Citi have also expressed interest in Chainlink’s products.
Despite present difficulties, analysts forecast a bull market for Chainlink
The price of Chainlink has not yet increased in line with these developments. At $14.41, LINK is trading at a 72.6% discount from its peak of $52.70 in May 2021.
This is explained by analysts by the fact that there are now more LINK tokens in circulation. As of June 29, 2024, there were 608 million tokens in circulation, up from 425 million in May 2021.
There is now an excess of supply on the market as a result of this large increase in production occurring without a corresponding growth in demand. It eventually causes the price of the token to stagnate.
Market analysts, however, continue to have a favorable long-term prognosis for LINK. Crypto expert Michaël van de Poppe predicted the impending bull market phase by observing a recurrent pattern in LINK’s price movements.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
