Key Points
- In a week, 54 new wallets purchased $30 million worth of Chainlink.
- Blockchain interoperability sparked by Chainlink’s CCIP.
- Increase supply causes LINK price to stagnate.
- Bullish forecasts for Chainlink made by analysts.
Chainlink (LINK) is gaining the trust of institutional investors who have injected more than $30 million into the coin in just one week. This investment shows that the altcoin has become more valuable and trusted in different financial sectors thanks to its Cross-Chain Interoperability Protocol (CCIP).
Institutions Have Bought Over $30 Million in Chainlink Amid Rising Adoptionhttps://t.co/kRYjQqycFT
— Afren K (@afren19D) July 3, 2024
Growing Institutional Interest in Chainlink
According to Lookonchain on-chain analytics platform, over the last seven days 54 new wallets withdrew a total of 2.08 million LINK tokens worth around $30.28 million from Binance.
The surge in acquisition is predominantly driven by Chainlink’s CCIP which simplifies blockchain interoperability for decentralized applications (dApps) and Web3 entrepreneurs. This enables secure data or token transfers between various blockchains thus allowing seamless interaction across them.
The CCIP supports nine major blockchains: Arbitrum, Avalanche, Base, BNB Chain, Ethereum, Kroma, Optimism, Polygon and WEMIX — this expansion played a crucial role in attracting institutional attention as the Depository Trust and Clearing Corporation (DTCC) recently concluded its Smart NAV pilot using it from ChainLink.
Ten market participants integrated on-chain data into diverse blockchain applications during this pilot thereby guaranteeing safe and efficient transmission of net asset value (NAV) data which is an essential metric for mutual funds.
Additionally partnerships with Citi Bank N.A., BNP Paribas Securities Services S.C.A., Lloyds Bank Plc., Deutsche Bank AG etc., have helped strengthen its presence within banking institutions; these collaborations serve as further evidence that financial organizations increasingly rely on Chainlink’s technology for operational efficiency improvement and security enhancement purposes.
LINK Price Hits Obstacles Despite Positive Outlooks
However, the price of Chainlink has not followed suit with its recent achievements. Currently trading at $14.41 per token, LINK reflects a 72.6% decrease from its all-time high recorded in May ($52.70).
According to experts, this stagnation is due to an increase in circulating supply of these tokens; as at June 29th 2024 there are 608 million LINKs in circulation compared to 425 million during May 2021. The oversupply without corresponding demand growth has contributed significantly towards stability of prices for such an asset like this.
Nevertheless, market sentiment remains bullish on LINK over the long term with renowned cryptocurrency analyst Michaël van de Poppe identifying recurring patterns in price action which precede bull markets phases thus predicting them too.
“First six months downwards,” Van der Poppe tweeted about LINK’s historical performance.“Second six months bull market.We’re in second part and slowly grinding upwards.Good times ahead.”
This optimism is shared by other market pundits who expect that the rising institutional interest coupled with practicality of Chainlink’s technology will eventually stimulate demand for it thereby pushing up both the value and price levels of LINK tokens.May holders gain more benefits from their investments as Chain Link continues expanding capabilities through partnerships etc.,
