Chainlink CCIP Archives

6th February 2024

Whale Rapidly Accumulating Chainlink: What’s Going On With LINK?

A mysterious whale is rapidly accumulating Chainlink (LINK). According to Lookonchain, the unknown entity, possibly an institution, withdrew over 2.2 million LINK (worth $42.38 million) via 47 new wallets from Binance, the world’s largest crypto exchange by trading volume, in two days.

This sudden block withdrawal now raises questions about what’s driving the whale’s interest and what it could mean for LINK in the coming days.

Crypto whale accumulating LINK | Source: Lookonchain via X

Chainlink Is Key In DeFi And NFTs, Gradually Improving

Chainlink is a popular project that provides secure middleware services and allows smart contracts to access tamper-proof external data. For this role, the platform has been adopted by multiple protocols offering decentralized finance (defi) services in Ethereum and beyond.

Additionally, Chainlink plays a role in non-fungible tokens (NFTs) through its random number generator (RNG). It continues to release new products and enhance its features.

To illustrate, in November, Chainlink upgraded its staking mechanism, releasing v0.2, which significantly increased the pool size to 45 million LINK.

The platform noted that the decision was to attract more investors and, more importantly, bolster its security while concurrently aligning with its broader objective of attaining the “Economics 2.0” plan.

Initially, staking began in December 2022. The goal was to incentivize participation by expanding the utility of LINK and allowing stakers to receive rewards.

The release of v0.2 in November means more tokens can be locked, helping make LINK scarce, considering the role of the token in the vast Chainlink ecosystem.

Trackers show that over 40.8 million LINKs have been locked so far. Chainlink confirms that anyone can earn a variable reward rate of 4.32%.

LINK staked | Source: Chainlink

Beyond staking, Chainlink’s Cross-Chain Interoperability Protocol (CCIP) is gaining adoption. To illustrate, the Hong Kong Monetary Authority (HKMA) initiated its first phase of e-Hong Kong Dollar (e-HKD) trials in November, integrating CCIP.

As part of this trial, the regulator wanted to illustrate the capabilities of programmable payments enabled by Chainlink via its solution, CCIP. In DeFi, protocols such as Synthetix and Aave have adopted CCIP.

Will LINK Breach $20?

With more protocols and traditional institutions leveraging the technology, the demand for LINK (and prices) will likely increase as the fear of missing out (FOMO) kicks in.

While the whale’s motives remain unknown, their large-scale LINK accumulation suggests they might be bullish on the token. Notably, it coincides with the sharp expansion of LINK prices in the past 48 hours.

So far, the token is changing hands slightly below the $20 psychological resistance. Any breakout above this level might lift the token to around $35 in Q3 2021.

6th November 2023

Four Reasons Why Investors Are Bullish On Chainlink

Chainlink’s recent price surge of 63% has turned heads in the cryptocurrency community. This uptrend begs the question: what’s driving investor confidence in Chainlink? Let’s dive into four key reasons that might be contributing to this bullish trend.

#1 Chainlink Dominance In The Oracle Space

Oracles act as a bridge between blockchain networks and the external world, fetching data that decentralized applications (dApps) rely on to function. This data can vary widely, from cryptocurrency price feeds essential for decentralized financial (DeFi) platforms to weather information or the results of real-world events for betting platforms.

Chainlink has emerged as the leader in this pivotal market, capturing a 47% share with its extensive network of over 1,000 oracles and support for 14+ blockchain platforms. By positioning itself as the primary provider of external data integration, Chainlink has become an essential component of the blockchain infrastructure.

#2 Other Products By Chainlink

Expanding beyond its initial focus on data feeds, Chainlink now offers a broad spectrum of blockchain services that have significantly strengthened its market presence:

Verifiable Random Function (VRF) – a verifiable method of producing complete randomness at a low cost, particularly useful to create random outcomes within gaming and gambling applications, as well as for any application requiring unpredictability in its protocol.
Automation – allows smart contract developers to utilize Chainlink’s infrastructure to automate their smart contracts cost-effectively and securely, which is crucial for the scalability and efficiency of decentralized applications (dApps).
Cross-Chain Interoperability Protocol (CCIP) – enabling seamless interaction and transfer of data and value across blockchain networks. This interconnectivity is pivotal for a more integrated and accessible blockchain ecosystem.

The introduction of CCIP, especially, underscores Chainlink’s commitment to driving the industry forward. It simplifies the user experience and broadens the potential use cases for blockchain technology, aspects that are highly attractive to institutional investors looking to enter the space.

#3 Institutional Interest

Chainlink’s CCIP and other products have allowed it to collaborate with big institutions, such as:

SWIFT – a global financial network that 11,000+ financial institutions use to securely transmit information and value, up to trillions of dollars.
DTCC – a global financial entity that processes and settles security transactions totaling quadrillions of dollars.
ANZ – one of the big four banks in the Asia-Pacific region, handling billions of dollars annually.
Other notable institutions working with Chainlink are BNP Paribas, Citi, and PwC Germany.

These partnerships highlight that institutions see the potential opportunity for blockchains and real-world systems to interact effectively. Chainlink’s co-founder Sergey Nazarov says:

It’s now clear that both top global banks and leading market infrastructures believe there will be greater adoption of digital assets across the entire banking industry, and that this adoption will happen using multiple different blockchain technologies at the same time.

#4 Bullish Price Action

Chainlink had traded between $5 and $9 between June 2022 and September 2023. In October, its price finally managed to break out of this range after an increase of 63%, reaching $12. This price increase was one of the largest within the cryptocurrency market, highlighting the faith investors have in this token.

The price currently sits in a previous trading range between $11 and $17. For the price to reach the top of this range, it would have to climb another 50%.

With its previous all-time highs of $53, it suggests there is still much room for Chainlink’s price to grow. Specifically, a 340% increase would have to occur for it to reach its previous highs.

Predycto is the author of a cryptocurrency newsletter. Sign up for free. Follow @Predycto on Twitter.

27th October 2023

Chainlink (LINK) Rides Bullish Waves With 42% Gains In The Week, Is $15 Possible?

LINK recorded impressive gains in the past week, with an over 43% seven-day price increase. However, the token’s price has slightly retraced in the last 24 hours, likely due to buyers taking profit after an aggressive accumulation phase for LINK tokens.

Chainlink’s notable uptick could be due to the ongoing bullish waves in the broader crypto market. Bitcoin, the flagship cryptocurrency, recorded a significant uptick, surging to nearly $35,000, the highest in over a year.

Bitcoin’s performance triggered a wave of optimism across the crypto market, causing most coins, including LINK, to soar. Moreover, Chainlink’s CCIP has recorded additional adoption and likely consolidated on LINK’s price gains.

But how far can the ongoing bullish momentum take LINK? Can it conquer prevailing resistance to reach $15? Let’s find out!

LINK Shows Signs Of Retracement, Is $15 Possible?

LINK is in an uptrend after breaching the $6.99 support level as buyers re-entered the market and forced a rally to the $11.9 resistance level.

LINK’s rally began last week when it surged from $7.42 on October 16 to $10.41 on October 23. While the rally has stalled, the latest strides show that buyers are intent on facilitating further rallies to retest the $11.9 resistance

A move above this level would empower LINK to target $15. Moreover, the higher high candlesticks on the chart imply that LINK will likely consolidate on its rally in the coming days.

Additionally, the Moving Average Convergence/Divergence (MACD) is above its signal line, displaying a strong buy signal. The green Histogram bars confirm this signal, which implies that LINK buyers are still active.

LINK trades at $11.003, with a 1.62% increase in the last 24 hours. Based on LINK’s trajectory, it will likely break above the $11.9 resistance to reach $15 in the coming weeks if buyers sustain their charge.

LINKUSD price chart

What Is Driving LINK’s Price Gains?

Besides the general uptrend in the crypto market, Chainlink has recorded notable developments within its ecosystem, likely sustaining its price gains.

One such is the integration of Chainlink’s CCIP by DeFi provider Affine. The Chainlink CCIP is the new industry standard for secure cross-chain linking on Ethereum and Polygon mainnets.

Affine hopes to leverage the CCIP’s messaging abilities to create a cross-chain NFT bridging function for Affine Pass NFTs. It will ensure seamless and secure NFT transfers between supported blockchains.

According to Affine developers, they selected Chainlink to host the Affine NFTs due to its proven security and reliability track record.

More so, some experts forecast that there will be up to $5 trillion in tokenized digital securities by 2030. Chainlink will likely benefit from this expansion since it is a significant player in tokenized assets technology.

With benefits such as fast transaction settlements, operational cost savings, and enhanced transparency, tokenization will likely boost Chainlink’s overall value.

These developments are likely sustaining the price gains for the LINK token in the past week. Although LINK trades slightly above $11 today, it will likely rise to $15 if market conditions remain favorable.

4th October 2023

Chainlink Creator Expects Mass Crypto Adoption To Send Market Cap To $10 Trillion

In a recent interview, Chainlink’s co-founder, Sergey Nazarov, said the collapse of the banking industry will drive crypto mass adoption.

Chainlink’s Co-Founder Predicts Crypto And Blockchain Prospects Over The Next Decade

Sergey Nazarov believes that the collapse of the banking industry will favor crypto adoption and growth in the next decade.

Nazarov believes the crypto industry and its technological innovations might maintain the same slow growth pace. However, the industry player cited two possible crypto and blockchain adoption scenarios in the next ten years.

First, the Chainlink co-founder proposed a fast-case scenario where the collapse of the traditional finance system puts individuals in pain. This pain will force individuals to “acknowledge the relevance” of cryptographic financial systems.

Further, Nazarov noted that the continued collapse of banks like Silicon Valley Bank could fast-track crypto adoption.

Secondly, based on the first theory, the collapse of traditional finance systems will lead to political tension and international problems. Nazarov believes investors will favor crypto for financial operations if the pain of suffering losses becomes unbearable.

Therefore, Nazarov insists that even in the slow case, the crypto market is likely on its way to a $10 trillion market cap.

LINKUSD price chart

Chainlink’s Adoption By ANZ Banking Group Supports Nazarov’s Growth Theory

According to a new industry report, ANZ Bank has adopted Chainlink’s CCIP for cross-chain tokenized asset settlement. CCIP solution helps to transfer data and tokenized assets across blockchains in a decentralized and secure way, according to the crypto founder.

Notably, ANZ Bank is one of the world’s largest banks, with over $1 trillion in total assets managed. Sergey Nazarov noted that Chainlink’s adoption by ANZ shows how large companies are now adopting Chainlink’s CCIP.

Also, the co-founder stated that building on a global internet needs secure connectivity between private bank chains and public chains.

The CCIP is an upgrade on the Chainlink Network that functions as a global Internet of Contracts. This upgrade aims to create the world’s largest liquidity layer across various regions and markets.

Remarkably, Nazarov stated that CCIP can create a higher level of cross-chain security. It achieves this extra security with multiple layers of decentralization and advanced risk management techniques.

Moreover, most cryptocurrencies offer users fast and secure cross-border transactions cheaply. However, some critics still insist that cryptocurrencies are unreliable based on their volatility and crisis in the sector.

With innovations like the CCIP of Chainlink, more banks may integrate crypto and blockchain-based solutions. This drives crypto to mainstream adoption, increasing the market cap to $10 trillion, as Nazarov predicts.

Meanwhile, the collapse of banks such as Silicon Valley Bank (SVB) in 2023 has strained the global finance economy. If another banking crisis occurs, cryptocurrencies might become the preferred option for most investors based on their rising utility.