Chainlink’s native cryptocurrency LINK has hit a new yearly high of $12,74.
Chainlink is one of the most appreciated cryptocurrencies this week. In the last 7 days, Chainlink's native coin rose by 12%, registering a new annual high for 2023.
LINK price is driven by several positive narratives in the market, in addition to the optimism surrounding the crypto ecosystem in general, due to the possible approval of a Bitcoin spot exchange-traded fund, or ETF, in the United States.
Chainlink usage and adoption surge this year
For starters, since the beginning of this year, there has been increased use and adoption of the blockchain oracle network.
According to Glassnode data, as of Nov. 5, Chainlink had over 685.000 active addresses with non-zero balances, up roughly 6% since January.
Source: Glassnode
The increase in the number of active addresses with balances above zero reflects increased activity and increased usage on the blockchain oracle network.
This is a metric that tells us an approximation of the adoption that a project is experiencing, so the greater the number of Chainlink addresses with balances greater than zero, the greater the demand for the network, which, in turn, positively impacts the price of the LINK token.
Institutional adoption grows with CCIP
But in addition to experiencing a significant increase in the number of active addresses with non-zero balances this year, Chainlink is also seeing increased institutional demand, driven by its cross-chain interoperability protocol, Cross-Chain Interoperability Protocol or CCIP.
At the end of September, this interoperability protocol was implemented on the blockchains of Arbitrum One y Base, two of the second layer chains (layer2) that are part of the Ethereum ecosystem.
The launch of CCIP has attracted major financial entities to Chainlink’s decentralized ecosystem, including Australia and New Zealand Banking Group (ANZ), interbank communications network SWIFT, and depository trust and clearing corporation (DTCC).
Chainlink is collaborating with all these institutions to develop different projects and accelerate the integration of the traditional financial system with the blockchain.
Together with SWIFT, which connects more than 11.000 banks and financial institutions worldwide, Chainlink is demonstrating the power of asset tokenization to optimize the utility of blockchain technology in the financial sector and thus foster the integration of both ecosystems.
On the other hand, Chainlink is collaborating with the Hong Kong Monetary Authority for the development of its CBDC digital currency, which has also become a catalyst for the rise in the price of LINK in the market.
LINK price increased by 12% this week
Finally, another factor that is positively impacting the price of LINK is Chainlink's upcoming update of its staking protocol to version v0.2, which integrates a series of improvements and reforms to increase staker flexibility, ensure security and improve the rewards mechanism, among other improvements.
Source: CoinMarketCap
Chainlink developers also highlighted that Staking v0.2 brings with it a modular architecture to facilitate the deployment of future updates.
All of these factors are driving up the price of LINK, which is trading at around $12,76 at the time of writing.
Continue reading: CCIP, from Chainlink, an interoperability protocol to connect Web3 with the traditional financial system
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