Chainlink Token Surges 26%
Between Nov. 2 and Nov. 8, Chainlink’s (LINK) token experienced a remarkable 26% surge, approaching $14, a level not seen since April 2022. This solidified its position as the 10th largest cryptocurrency (excluding stablecoins) by market capitalization.
Spot Bitcoin ETF Expectations and Real World Asset Tokenization
Bloomberg’s ETF strategists, James Seyffart and Eric Balhunas, issued a research note on Nov. 8, which has boosted the confidence of cryptocurrency traders. In their note, they explain that the window for approving a Bitcoin spot exchange-traded fund is set to open on Nov. 9, as the U.S. Securities and Exchange Commission concludes its latest round of postponements. Seyffart maintains a 90% likelihood of approval but cautions that the regulator’s final decision may be delayed until mid-January.
Altcoin Price Increases
Altcoins have also seen notable price increases in the past seven days, with Trust Wallet Token (TWT) surging by 41%, Immutable X (IMX) by 29%, and NEO by 28%. LINK’s appreciation is indicative of the positive sentiment towards altcoins following Bitcoin’s apparent stagnation around the $35,500 mark.
Positive Developments in Chainlink’s Ecosystem
Several positive developments have contributed to LINK’s recent performance within the Chainlink ecosystem. Vodafone and Sumitomo Corporation launched Pairpoint using Chainlink oracles to facilitate transactions and offer diverse applications, including electric vehicle charging stations and toll roads. RWA tokenization is poised to become mainstream, as evidenced by HSBC’s launch of custody services for regulated securities on Nov. 8.
Professional Traders’ Increased Demand for LINK Token
Despite promising future prospects, traders are questioning whether there have been substantial institutional inflows into Chainlink to support the 26% rally in just six days. Grayscale’s Chainlink Trust (GLNK) presents an optimistic perspective, despite its relatively modest $3.9 million in assets under management. Further fueling Chainlink’s impressive gains is the listing of LINK on the HashKey exchange in Hong Kong.
Increased Network Activity Supports Price Surge
From an on-chain metrics perspective, Chainlink’s price surge is supported by increased network activity. The most recent peak occurred on Nov. 7, coinciding with issues at the now-defunct FTX exchange. While some valid criticisms have been raised regarding Chainlink’s excessive centralization, its oracle dominance remains unchallenged.
Hot Take: Positive Future Prospects for Chainlink
The recent surge in LINK’s price reflects positive sentiment toward altcoins and the potential approval of a Bitcoin spot ETF. Institutional inflows through Grayscale and listing on HashKey exchange further contribute to this optimism while increased network activity supports continued price hikes above $14.
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