Chainlink (LINK) is among the cryptocurrencies that have seen remarkable growth over the past 7 days.
This week, the value of LINK, the native cryptocurrency of the Chainlink network, rose by 33,6%, positioning itself as the third best-performing cryptocurrency on the market.
LINK is currently trading at $19,5 per unit, which represents a significant increase from its previous value. Last week, LINK was trading at around $14 per token, according to data from CoinMarketCap.
Source: CoinMarketCap
With this increase, Chainlink has reached 2-year highs. In addition, it has managed to overcome the resistance it has been in since last November, which kept it trading in a lateral range between $13 and $15 dollars, on average.
Chainlink is one of the most popular cryptocurrencies on the market, ranking eleventh in the market in terms of market capitalization.
What drives the price of LINK?
LINK's bullish momentum has been fueled by increased demand for the decentralized oracle network, which allows developers in the Web3 ecosystem to connect smart contracts with external data.
Chainlink is one of the undisputed leaders in the crypto industry, especially in the blockchain oracle sector, with over 1.000 integrations with different platforms and projects to date. Among the latest integrations announced by Chainlink are Ethereum’s Layer 2 Base and Polygon networks and the ecosystem powered by zero-knowledge technology zkSync; as well as several world-renowned companies, such as the telecommunications company Vodafone and the consulting and professional services firm PwC.
Source: Chainlink
Regarding LINK’s recent surge, analysts anticipate that the positive trend could continue as Chainlink offers a unique and scalable solution for the decentralized finance (DeFi) and Web3 ecosystem.
CCIP and Chainlink’s new use cases
The continuous improvement of the blockchain oracle protocol, which has incorporated new functionalities such as data aggregation, cross-chain interoperability, and interconnection with Web2 APIs, will continue to drive the growth of its native cryptocurrency.
Chainlink is seeing a notable surge in demand for its cross-chain interoperability protocol, called Cross-Chain Interoperability Protocol (CCIP), which has been deployed on the Ethereum, Polygon, Optimism, and Avalanche blockchains. Currently, institutions such as the Australia and New Zealand Banking Group (ANZ), SWIFT, and the Depository Trust and Clearing Corporation (DTCC) are using Chainlink’s CCIP protocol to develop new projects that help accelerate the integration of traditional finance with blockchain to unlock access to the Web3 economy.
The growing demand for its services from projects across various industries, the strategic alliances that the protocol's developers have been announcing in recent months with several global companies and institutions, and the growing expansion of its ecosystem and user community have also been generating greater confidence and expectation about Chainlink's potential to drive mass adoption of cryptocurrencies.
Chainlink is currently one of the leading providers of data, computation, and cross-chain connectivity to the blockchain ecosystem, which has been facilitating the adoption of tokenized real-world assets, or RWAs, by traditional financial institutions.
In addition to all of the above, the current performance of Bitcoin, the main cryptocurrency on the market, could also be influencing the bullish momentum of LINK and other altcoins.
Cryptocurrency investor and analyst Michaël van de Poppe believes that Bitcoin will enter a bullish phase that could have a significant impact on the rest of the market, due to the approval of spot ETFs in the US market, growing institutional demand and the proximity of the next halving of the blockchain network. About LINK, opined that it was “great” to see how this cryptocurrency was approaching $20 per unit and that, in general, the cryptocurrency market was consolidating.
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