Between November 2 and November 8, Chainlink’s LINK (LINK) token saw an astounding 26% increase, bringing it close to $14—a level not seen since April 2022. With stablecoins excluded, this cemented its ranking as the tenth-largest cryptocurrency by market valuation.
Although traders are pleased with the price activity, is Chainlink’s $8.1 billion present valuation reasonable? According to research by Cointelegraph, the remarkable price increase is being propelled by anticipations of tokenization of real-world assets (RWAs) and preliminary indications of institutional adoption. But let’s take a closer look to evaluate how long this surge can last.
Expectations for a spot Bitcoin ETF and the tokenization of real-world assets improve sentiment
Chainlink (LINK) Surges 26% in 6 Days – Further Upside Potential,Chainlink (LINK) Surges 26% in 6 Days – Further Upside Potential
The research note that James Seyffart and Eric Balhunas, strategists for exchange-traded funds (ETFs) at Bloomberg, released on November 8 has given cryptocurrency traders further optimism.
They clarify in their letter that as the US Securities and Exchange Commission wraps up its most recent series of postponements, the window for authorising a spot Bitcoin (BTC) exchange-traded fund is scheduled to open on November 9.
Seyffart continues to project a 90% chance of approval, but issues a warning that the regulator could not make a final judgement until mid-January.
In the last week, the prices of other cryptocurrencies have also increased significantly: Trust Wallet Token (TWT) has increased by 41%, Immutable X’s IMX (IMX) by 29%, and NEO by 28%. The rise in LINK’s value reflects the general optimism in altcoins, especially in the wake of Bitcoin’s seeming plateau around $35,500.
A number of encouraging advancements within Chainlink’s ecosystem have boosted the LINK’s performance recently.
On November 7, Vodafone, a significant telecom provider in Europe and North Africa, formally announced its collaboration with Sumitomo Corporation, a Japanese financial conglomerate.
Through the use of Chainlink oracles, the two companies will be able to facilitate transactions and provide a range of applications, such as toll roads and charging stations for electric vehicles.
In the developing Internet of Things (IoT) environment, this digital platform, called Pairpoint, permits autonomous interaction and trading between cars and objects. Pairpoint fully integrates with partners including Mastercard, HSBC, Deloitte, and IBM and makes use of Vodafone’s current digital assets platform.
The LINK token is in more demand among professional traders.
Though the future looks bright, traders are doubting if significant institutional inflows have entered Chainlink to sustain the 26% increase in just six days. Although there isn’t a perfect way to measure this, Grayscale’s Chainlink Trust (GLNK), with its comparatively small $3.9 million in assets under management, offers a positive outlook.
Asset managers that are unable to invest directly in cryptocurrencies can trade this over-the-counter product through standard stock market brokers. GLNK’s price is now trading at a premium of 320% above the fund’s proportionate holdings of LINK, which suggests strong demand for the stock.
Chainlink (LINK) Surges 26% in 6 Days – Further Upside Potential,Chainlink (LINK) Surges 26% in 6 Days – Further Upside Potential,Chainlink (LINK) Surges 26% in 6 Days – Further Upside Potential , Chainlink coin Crypto news, Chainlink coin News