Chainlink leads the market with a 61% weekly gain. Should we see an increase in the price of LINK? The price of LINK made a shocking double-digit gain last week, but what exactly is behind this move? To track the price of digital currencies, stay with Pooyan Music website.
LINK price is set to enter huge bullish market
Chainlink’s LINK token increased by a significant 61.3% from October 20th to October 25th. That is, it reached a peak of $11.78 and showed its highest point since May 2022. LINK price then stabilized around $10.50, prompting investors to question the sustainability of this new level.
It is worth noting that this increase coincided with the 23% growth of Bitcoin in the same period. However, LINK’s performance stands out compared to Ether’s 14% increase and SOL’s 28% increase. This indicates an increase in bullish sentiment towards decentralized computing solutions and Oracle Chainlink.
Chain partnerships and mergers are the backbone of the rally
Several recent improvements have helped LINK perform better than its peers. Notably, the announcement of Chainlink’s upcoming native stock upgrade, scheduled to be released in the next few months, attracted considerable attention. The initial pool was a resounding success, filling up in less than three hours.
In addition, Chainlink’s integration into various blockchain networks has created optimism among LINK investors. For example, on October 15, Chainlink offered its services to Advanced Crypto Strategies DAO, a multi-chain yield optimizer and automated liquidity manager, and Equilibria, a yield enhancer for Pendle Finance.
As of October 22, Chainlink services were integrated into Cobo Global, an enterprise-level digital custody solution, the StaFi protocol liquid staking solution for proof-of-stake chains, the on-chain Ethereum derivatives platform that provides Thales Market and Xena Finance.
On October 24, telecom giant Vodafone made an important announcement. Vodafone announced the participation of its digital asset arm in the Chainlink network as a node operator. This comes after completing a proof of concept with Japanese trading and investment company Sumitomo to exchange business documents between platforms.
Fears of FTX and Alameda Research bankruptcy liquidation disappear
The price of LINK came under pressure after the bankruptcy court approved the sale of FTX and Alameda Research cryptocurrencies on September 13. Initially, there were concerns about the potential liquidation of $3.4 billion worth of digital assets, including LINK, which fueled those concerns. Since the market crash, however, recent transfers from wallets linked to bankruptcy estates have been gradual and have had little impact on prices.
As concerns about FTX and the Alameda Research bankruptcy eased and interest in mid-cap altcoins increased as Bitcoin rose above $32,000 on October 23, investor interest in LINK increased. As a result, demand for leveraged buy positions on LINK reached a three-month high.
According to data from Messari and Coin Metrics, the number of active addresses in the Chainlink network has reached the highest level in the last 11 months. Interestingly, the previous peak occurred on November 7, 2022, when issues with FTX led to LINK’s 6-month high of $38.32. This coincides with FTX’s concerns about withdrawals and concerns about the impact of its native FTX token (FTT) following Changpeng “CZ” Zhao’s decision to liquidate Binance’s FTT holdings the previous day.
The next 30 days were very negative for the LINK price, with the token down 51.7% to $18.50. However, given the fundamental improvements in its ecosystem and promising developments in the native Chainlink stock solution, LINK enthusiasts need not worry this time.