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Chainlink Co-Creator Predicts RWA Will Revolutionize Blockchain
- The Chainlink network has attracted an increasing number of institutional investors, led by DTCC and SWIFT, who are looking to leverage its trusted web3 solutions like CCIP.
- On-chain data shows that whale investors have accumulated over 10 million LINK, worth over $120 million, in the past two weeks, strengthening its bullish recovery.
Chainlink (LINK), a trusted smart contract chain offering multi-chain capabilities, is well positioned to enable mass adoption of digital assets and web3 projects. According to Chainlink co-founder Sergey Nazarov, more institutional investors are using the Chainlink network to tokenize real-world assets (RWA).
“RWAs have the ability to hold critical data that proves important things about the underlying asset much faster and more effectively than traditional systems. Good examples are using Chainlink to put NAV data on-chain for large CSDs and proof of reserve on the current state of an underlying asset,” Nazarov noted.
Chainlink Ecosystem Growth
The Chainlink network has grown into a vibrant web3 ecosystem supported by trusted investors and a loyal online community. In an effort to keep up with the growing demands of the web3 space, Chainlink’s core developers have created the infrastructure needed to enable seamless adoption of digital assets and smart contracts.
As we have previously reported, the Chainlink network has entered into several strategic partnerships with several institutional investors led by CircleDTCC and Swift, among many others. Earlier this month, Chainlink announced a strategic partnership with Fidelity International and Sygnum to bring Net Asset Value (NAV) data on-chain.
Chainlink Whales Demand Increases
The recent cryptocurrency capitulation fueled by significant Bitcoin sell-offs the german government has fallen sharply, as evidenced by the significant rebound in the Fear and Greed Index. As a result, long-term holders have taken advantage of the discounted cryptocurrency prices to accumulate more digital assets.
As we’ve previously reported, Chainlink holders with more than 10,000 units have added more than 10 million LINK tokens, worth over $120 million in the past two weeks. As a result, approximately 52% of the total LINK supply is currently held by long-term holders.
Image Source: Holiness
Is LINK price consolidation over?
As fears of further crypto capitulation have receded dramatically in recent days, the cryptocurrency sector has surged more than 4 percent on Monday. Chainlink price has surged more than 5 percent in the past 24 hours, settling around $13.83 at the time of this report.
However, the bounce in LINK price against the US dollar does not negate the downtrend that started earlier this year. Unless the Price LINK closes steadily above the support/resistance level around $18, the altcoin will continue to decline towards $10, which coincides with the 0.786 weekly Fibonacci extension.
Additionally, the mid-cap altcoin, with a fully diluted valuation of around $14 billion and daily trade volume of around $300 million, closed below its 50 and 200 weekly moving averages (MA) for the first time since last October.
Nonetheless, the price of LINK could return to its all-time high if long-term buyers continue to accumulate more amid the ongoing macroeconomic consolidation.
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