Chainlink's Costs Soar to Levels Not Seen Since October 2021's Peak
Chainlink's Costs Soar to Levels Not Seen Since October 2021's Peak
Chainlink's LINK token has seen a significant surge lately, reaching its highest value in over three years on December 13. This occurred when the decentralized network was enjoying increased visibility and rising adoption.
The digital currency touched $30.94, as per data from Binance on TradingView.
The cryptocurrency experienced considerable growth in the months leading up to this peak. It had been trading below $10.00 as recently as September, according to further data provided by Binance and reported by TradingView.
Jacob Joseph, senior research analyst for CCData, explained this impressive uptrend.
"The Chainlink token has witnessed an extraordinary increase over the past month, rising by 286% since the US elections, reaching a multi-year high of $30.94 today," he commented via email.
"The token's recent price surge seems to be driven by a shift in sentiment, triggered by Donald Trump's DeFi project, World Liberty Financial, amassing nearly 80,000 LINK tokens and incorporating the Chainlink standard into their platform," Joseph elaborated.
"Moreover, Chainlink's fundamentals remain stronger than ever, with this cycle characterized by the increasing adoption of blockchain technology and digital assets by institutional players," he pointed out.
"Chainlink oracles have been utilized by central banks, financial institutions, and payment networks like SWIFT in their blockchain experiments. As the leading provider of oracle solutions, Chainlink is in the best position to capitalize on the era of tokenization, which Larry Fink has praised as the future of financial markets," Joseph added.
TikTok influencer Wendy O also shared her insights on the key events that have coincided with the LINK token's recent strength.
"Chainlink has been making long-term utility moves while meme coins have taken center stage," she stated via email.
"On 11/14/2024, World Liberty Finance, the Web3 platform that President Elect Trump is advising for, announced it would be adopting the Chainlink model, utilizing their oracles to fuel and secure DeFi," the prominent crypto analyst noted.
"On 12/12/2024, Look On Chain posted via X, that World Liberty Finance had bought 41,335 LINK tokens at $24.20. Shortly afterwards, we saw LINK reach a high of $31. However, on 12/2/2024, LINK broke out of the $21.58 (weekly close and high of 2024) area to a high of $26.86, before experiencing some volatility," she said.
The chart below illustrates these events:
Patrick Liou, principal of institutional sales for Gemini, also provided his perspective.
"Chainlink's outperformance has coincided with futures open interest for LINK reaching an all-time high of $770M, according to Glassnode data," he stated via email, highlighting some essential data for the derivatives market for the token.
Like other analysts offering their insights for this specific article, Liou emphasized the recent headlines surrounding World Liberty Financial's use of Chainlink.
"In addition, World Liberty Financial, the DeFi project launched by the Trump Family, used LINK for its on-chain data to empower its borrowing and lending services it plans to offer. World Liberty Finance wallets show it has added 37,052 (worth ~$1M) to its holdings," said Liou.
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, EOS and SOL.
The surge in Chainlink's digital currency, LINK, can be linked to its highest price in over three years on December 13, which was significantly influenced by World Liberty Financial's amassing of nearly 80,000 LINK tokens and integrating the Chainlink standard into their platform. Recent price increases in Chainlink's cryptocurrency have also been fueled by its strong fundamentals, as institutional players continue to adopt blockchain technology and digital assets.
The price of Chainlink's digital asset, LINK, continued to climb, reaching a new high of $31.00 on December 13, 20XX, according to data from Binance on TradingView. This price increase was partly driven by World Liberty Financial's adoption of Chainlink and the growing interest in digital currencies from institutional investors.