- Chainlink price continued its bullish momentum this week.
- The token crossed the key resistance point at $17.
- It is benefiting from Chainlink’s role in the blockchain industry.
Chainlink (LINK) price continued surging this week as the market cheered its growing role in the crypto industry. It rose to a high of $18, its highest point since February 2022. It has jumped by more than 280% from its lowest point in 2023, making it one of the best-performing cryptocurrencies in the market.
Growing market share
The cryptocurrency industry is made up of several platforms that have no major utility at all. Think of the popular meme coins like Pepe, Bonk, and Dogelon Mars. Chainlink, on the other hand, has grown to become one of the most important platforms in the blockchain industry.
For starters, Chainlink is an oracle platform that makes it possible for developers to move off-chain data to the on-chain. The most popular way that this works is through price feeds, which are moved to DeFi networks like Uniswap, dYdX. It can also be used to connect other types of data like sports and weather.
Data shows that Chainlink has the biggest market share in the DeFi industry, where it has over $17.5 billion in Total Value Secured (TVS). It is followed by other oracle networks like Chronicle, WINKLink, Pyth, and Switchboard.
Chainlink has other uses in the blockchain industry. It launched the Cross-Chain Interoperability Protocol (CCIP), which makes it possible for people to securely send messages, transfer tokens, and initiate actions across different blockchains.
The implication is that the CCIP is now set to play a big role in the growing industry of tokenization. Tokenization of Real World Assets (RWA) is a process where people can convert their real assets like real estate and art into digital tokens that can be moved easily.
Big banks and companies have started to use tokenization to improve their processes. In 2023, JPMorgan implemented a large transaction between Blackrock and JPMorgan through tokenization. ANZ Bank is also doing the same while the London Stock Exchange (LSE) is working on tokenization to make its trading platform easy to use.
Chainlink is, therefore, in a pole position in this industry, especially with its deal with Swift, an organization that handles transactions worth trillions every day. For investors, it is easy to stake LINK and earn monthly returns.
Chainlink price forecast
The weekly chart shows that LINK price has been in a slow upward trend in the past few months. This rally intensified on Friday morning as it surged above the key resistance at $17.70, its highest point in 2023 and in January. This is a sign that bulls are getting in control.
Chainlink has moved above the 50-week and 25-week Exponential Moving Averages (EMA). Therefore, it seems like Chainlink has the momentum it needs to continue rising. If this happens, the next price to watch will be the psychological point at $20.
