Chainlink and Other Altcoins Poised for Gains Based on On-Chain Data
Chainlink (LINK) and three other altcoins are showing potential for gains, supported by positive on-chain data. This comes at a time when the price of Bitcoin (BTC) is trading within a narrow range of $26,000 to $27,000.
According to Santiment, a popular on-chain analytics firm, Chainlink is experiencing a surge in activity, particularly in terms of unique address interactions. Recently, these interactions reached a two-month high of around 4,000.
The analysts at Santiment believe that Chainlink’s price may continue to rise, especially if the broader market underestimates its potential. Currently, the native token of the decentralized oracle network is trading at $7.3, with an increase of over 9% in the past week and over 23.5% in the last 30 days.
Notably, Chainlink recently launched its Cross-Chain Interoperability Protocol (CCIP) for early access users. The protocol aims to enhance cross-chain applications and services and is now functional on the Avalanche, Ethereum, Optimism, and Polygon blockchains. It has been tested by 25 partners who are now transitioning to the mainnet.
Partnerships and Adoption
Aave, a major decentralized finance (DeFi) protocol, and Synthetix, a decentralized liquidity platform, are among the partners using Chainlink’s interoperability protocol. Additionally, SWIFT, the international payment and messaging system used by banks worldwide, has partnered with Chainlink due to the protocol’s key role in enabling interoperability.
Aside from Chainlink, Santiment is also keeping an eye on Loom Network (LOOM), Frontier (FRONT), and ImmutableX (IMX). These altcoins have been outperforming the market as their adoption grows.
Santiment suggests that if these networks continue to grow and attract new users, they have the potential to sustain their rallies and outperform the overall market.
Hot Take: Potential Gains for Chainlink and Other Altcoins
Chainlink and several other altcoins are showing promising signs of potential gains based on on-chain data. Santiment’s analysis highlights the surge in activity for Chainlink, driven by increased unique address interactions. This positive trend, coupled with the recent launch of Chainlink’s Cross-Chain Interoperability Protocol, positions the altcoin for further growth.
Moreover, Santiment is also monitoring Loom Network, Frontier, and ImmutableX, as these altcoins demonstrate strong performance amid growing adoption. If these networks continue to expand and attract new users, they have the potential to sustain their rallies and outperform the broader market.
Overall, this analysis emphasizes the importance of on-chain data in identifying potential opportunities in the cryptocurrency market. By staying informed about network activity and partnerships, crypto investors can make more informed decisions to maximize their gains.
Featured image via Unsplash.
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