Chainlink (LINK) is returning to price levels not seen since 2021 as this token approaches the $30 mark. On-chain data analysis shows increasing whale activity, with large wallets buying in at this price.
LINK 4-hour price chart | Source: Tradingview
According to recent on-chain data, LINK is becoming attractive to large investors. In one transaction, a large buyer purchased $4.94 million in LINK at an average price of $28.18. This coin was transferred through an intermediary wallet before reaching the wallet of a large holder, active since November.
The price of LINK is currently returning to levels last achieved in 2021. This token has an unusual trajectory, peaking at the end of 2020 at over $49. Since then, LINK has functioned as a utility token and often trends inversely to the market.
By the end of 2024, LINK will rise in price alongside other major coins after a short altcoin season is triggered. LINK has always been supported by the long-term holder community, thus creating expectations for new all-time highs (ATH).
LINK is one of the few tokens that has strong appeal to the community while also being highly applicable through its oracle service. The company continues to expand its project portfolio, providing data to professionals in the crypto industry and some clients in the traditional finance (TradFi) sector. Chainlink is currently securing data for 407 crypto organizations, with a total value of $38.33 billion according to DefiLlama data.
Total value secured by Chainlink | Source: DefiLlama
LINK is being closely monitored with the potential to reach new peaks by the end of 2024 as the price approaches ATH.
As of December 12, the total open interest (OI)* of LINK has reached an ATH, surpassing $656 million and showing steady growth in recent days. LINK maintains a 70% long position compared to an average of 30% short positions across most major exchanges.
The recent price surge of LINK is also related to the new boom of the Bybit exchange. A large portion of LINK's trading volume has now shifted to this rising exchange, with a total OI value of $341.7 million in that market. LINK has also gained more attention as it rises to be among the top 15 coins and tokens by market capitalization.
Chainlink benefits from partnerships in oracle services
The recent price increase of Chainlink has also been partly driven by news of Donald Trump's DeFi project, World Liberty Financial, purchasing LINK for its investment portfolio. World Liberty Financial has also bought ETH and AAVE to build a DeFi treasury. Currently, World Liberty Financial owns $1.15 million in LINK, equivalent to 41,330 tokens, stored in a public wallet.
Chainlink confirms World Liberty Financial's purchase of LINK in a partnership utilizing oracle services, surpassing mere short-term speculative purposes.
The project has distinct attractive points in relation to both the community and real financial institutions. Recently, Chainlink joined the Digital Asset Board along with Emirates NBD. The project will contribute expertise alongside reputable council members, including PwC, Fireblocks, R3, and Chainalysis.
With total assets under management of $260 billion, the company will explore Chainlink's services to enhance operational efficiency. The project continues to test digital data services and oracle connections to improve traditional business processes.
Chainlink is driven by cross-chain transactions
In addition to oracle services, Chainlink's main product is the Cross-Chain Interoperability Protocol (CCIP). The key asset of this protocol is USDC from Circle, considered to be a fully managed and transparent asset.
Chainlink's CCIP primarily supports USDC and GHO within the Aave and DeFi ecosystem | Source: Dune Analytics
According to data from Dune Analytics, over 90% of the trading volume through CCIP is for stablecoins, one of the main asset types used in crypto. The two most commonly moved multi-chain types are USDC and Aave's GHO stablecoin. Chainlink serves as one of the main providers for Aave's lending ecosystem across multiple chains.
CCIP has also expanded to Ronin Network, a rapidly developing platform for Web3 and gaming. The Ronin community has voted to move its cross-chain operations to CCIP, replacing current bridges. Ronin Network was once very successful but faced significant setbacks after one of its main bridges was hacked, resulting in over $600 million in losses.
*OI (open interest) is a measure of the total value of all outstanding futures contracts or “unsettled” contracts on exchanges, and it is also an indicator of market bullishness as well as trader sentiment around a specific asset.
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