Chainlink’s native token, LINK, recently experienced a significant downturn, causing concerns among investors. The decline was mainly attributed to speculation surrounding the potential rejection of the spot Bitcoin ETF by the US Securities and Exchange Commission (SEC). However, the latest data suggests that LINK is now decoupling from the altcoin pack, indicated by its ratio hitting a four-year low on crypto exchanges. This article analyzes the recent recovery of LINK and explores the factors contributing to its renewed bullish sentiment.
Over the weekend, LINK witnessed a striking mini breakout, reaching $15.82 for the first time since April 6, 2022. This surge in price was accompanied by a significant decrease in the supply of LINK on exchanges, falling below the 15% mark for the first time in approximately four years, as indicated in Santiment’s recent analysis. This decrease in supply suggested a decrease in selling pressure and demonstrated a growing optimism among investors for potential future gains.
The number of LINK wallets holding more than zero coins is also on the rise, nearing its all-time high and currently sitting at 713.56k. This figure indicates a strong level of investor confidence and further supports the notion of a renewed bullish sentiment surrounding LINK. With a growing number of individuals choosing to hold LINK, it signifies a belief in its potential as a valuable crypto asset.
Chainlink continues to make strides in its mission to bridge the gap between traditional finance and blockchain technology. Recent updates reveal the integration of four Chainlink services across seven different chains, including Arbitrum, BNB Chain, Ethereum, Optimism, Polygon, zksync, and Linea. These integrations highlight Chainlink’s commitment to expanding its reach and providing its services to a wider audience. By enabling cross-chain transactions and supporting the virtual tokenization of Real World Assets (RWAs), Chainlink aims to play a significant role in integrating capital markets into the blockchain.
LINK’s recent recovery and its decoupling from the altcoin pack mark an encouraging development for the token. With its price surging and its supply on exchanges dropping to a four-year low, investor optimism has been reignited. The growing number of wallets holding LINK further reinforces this positive sentiment. Moreover, Chainlink’s ongoing efforts to expand its services and bridge the gap between traditional finance and blockchain technology position it as a key player in the industry. As the 13th-largest crypto asset by market cap, LINK’s future looks promising, and investor confidence continues to grow.
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