Chainlink’s growing development activity, strong narrative around tokenization, and favorable technical indicators suggest that LINK is maybe ready for a jump.
Tokenization it’s not just a buzzword anymore
Chainlink became a more popular project in the crypto world this year, largely due to excitement about tokenizing real-world assets, as this process can help illiquid assets, such as real estate, become more liquid and easier to trade.
Chainlink’s oracle services are maybe the most important for this tokenization because they provide trustworthy data feeds between the actual assets and decentralized applications.
This trend toward tokenization gained more traction in the past years, boosting LINK’s appeal in the market.
Chainlink founder Sergey Nazarov shared his belief that asset tokenization will eventually revolutionize the Web3 industry.
I am increasingly convinced that the RWA trend is the early stages of getting the traditional financial system onto blockchains in a way that we have not seen yet.
Some of the world's largest financial institutions are already putting tokenized funds on-chain, and I think we are… pic.twitter.com/OxIHuT3mwf
— Sergey Nazarov (@SergeyNazarov) September 24, 2024
He predicted that the value of tokenized real-world assets could surpass that of cryptocurrencies in the coming years as traditional finance begins to invest more heavily in this area.
Nazarov’s optimistic outlook was echoed by Chainlink, which anticipates huge growth in tokenized assets driven by institutional adoption and hopefully supportive regulatory changes.
Development activity
Chainlink is in the good spot to take advantage of this potential shift thanks to its cross-chain interoperability protocol, which became widely available in April.
This open-source communication standard allows developers to create secure applications that can transfer tokens and messages across different blockchain networks.
Chainlink experienced the second-highest level of development activity among blockchain projects in the last month, and this suggests a growing network and a positive outlook for its long-term potential.
The Chainlink non-circulating supply wallet unlocked 18.125 million LINK tokens that were deposited into Binance.
This was the ninth unlock event, and on-chain monitoring tool Lookonchain noted that seven of these unlocks were followed by price increases about a month later.
Technical analysis of LINK/USD chart, what’s next?
LINK now is trading at an important price point of $12.50 in the time of writing, which is down 18% since the beginning of the year and more than 76% below its peak in May 2021.
Over the past week, LINK has been trading above a long-term falling channel after breaking out on last week.
The immediate support level for LINK/USD is at $8.09, while long-term support stands at $5.68.
The MACD indicator on the daily chart signals bullish momentum, because it crossed above the signal line on September 10.
This also supports the idea that upside movement is gaining strength.
Have you read it yet? Dogecoin founder declared he created the internet
Disclosure:This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Kriptoworld.com accepts no liability for any errors in the articles or for any financial loss resulting from incorrect information.
