- Chainlink price has made strong progress in the past few days.
- The network is an important one in the blockchain industry.
- It provides Oracle services that are used by leading companies like Aave and dYdX.
Chainlink (LINK) price has held quite steady in the past few days even as most coins have remained under pressure. LINK surged to a high of $15.7 on Wednesday, a few points below last week’s high of $16. It has jumped by almost 30% from its lowest point this year, making it one of the top-performing coins in the industry.
Chainlink is a key part of Web3
Chainlink has done well because of its crucial role in the crypto industry, providing oracle services. Oracles help to connect off-chain data to the on-chain. The most common data in this case is price feeds of stocks, cryptocurrencies, and other assets. For example, instead of DeFi companies sourcing their own data, they use the company to do that.
Chainlink powers some of the biggest companies in Decentralized Finance (DeFi) like Aave, Flexa, Synthetix, LiquIty, and dYdX, among others. As a result, according to its website, Chainlink has facilitated over $9 trillion in transactions in its lifetime. Data by DeFi Llama shows that it has over $18 billion in total value secured (TVL). It competes with the likes of Band Protocol, WINKLink, and TWAP.
Read more: How to buy AAVE.
Chainlink has also emerged as a leading player in the concept known as tokenization, which is expected to change the world in the coming years. Tokenization simply helps companies or individuals convert their assets into tokens that can be stored or sold.
Analysts believe that trillions worth of assets will be tokenized. In this case, Chainlink provides a service known as a Proof of Reserve, which is important for verifying tokenized assets. At the same time, it has the Cross Chain Interoperability Protocol (CCIP) that allows communication across blockchains like Avalanche and Ethereum.
Chainlink is working with companies, including Swift, which connects thousands of banks globally and handles trillions of dollars every day. Swift is considering how it can use this tokenization well in the industry.
Chainlink price forecast
The daily chart shows that the LINK price has made a strong bullish breakout in the past few days. As a result, the token has moved comfortably above the 50-day and 100-day Exponential Moving Averages. The Relative Strength Index (RSI) has moved above the neutral point of 50 and is pointing upwards.
Therefore, in this case, there are signs that Chainlink has momentum, which will see it continue rising. If this happens, the next price to watch will be at $17.70, the highest point in December this year.
Read more: How to buy Chainlink.
