According to CoinDesk, research firm K33 Research has suggested that Chainlink's native token, LINK, might be the safest investment option for those looking to profit from the growing interest in the tokenization of real-world assets (RWA). K33 analyst David Zimmerman stated that LINK is the safest bet for exposure to the RWA narrative, as the process of tokenization is expected to reduce costs, improve accessibility, and increase transparency for traditional financial assets such as private equity, credit, and bonds.
Global banks and crypto platforms are already exploring tokenization, with JPMorgan recently announcing its first live blockchain-based collateral settlement transaction involving BlackRock and Barclays. However, Zimmerman noted that there are still many hurdles to overcome before RWA can reach its full potential. Despite this, he believes the narrative will be compelling enough to potentially trigger an isolated RWA crypto bubble before there is widespread substantial impact from RWA on the real world.
Zimmerman explained that Chainlink has positioned itself as a crucial piece of infrastructure to connect blockchains with the outside world through its system of oracles and wide range of partnerships. While it may not be the biggest gainer, Zimmerman said that few projects are better positioned to benefit from the narrative. He advised investors to wait for lower prices to go long, pointing to the long-term support level at around $5.70 to take long positions. At the time of the report, LINK was trading at $7.30, down significantly from its all-time high of $53 but up 32% this year.
