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Analyst Bullish on Chainlink as Whales Increase LINK Holdings

Analyst Ali Martinez recently shared his thoughts about the price trajectory of LINK, the native cryptocurrency of oracle network Chainlink. He wrote on ‘X’ (formerly Twitter) that Chainlink maintained support between $6.63 and $6.88, highlighting that 29,000 addresses bought 295 million LINK worth over $2 billion. Whales eager to stock up on LINK seem to have recognized Chainlink’s strength by acquiring over $90 million worth of the asset.

In his view, the outlook for LINK remains strong as long as it can keep above those levels, as very little in terms of barriers is in its path. He added that traders might not be as happy as long-term holders as “On-chain data shows a decrease in network activity in the past three weeks, with the number of large transactions going from 527 to 118. Still, a spike in this metric might indicate a breakout.”

Data analytics platform Santiment echoes the positive attitude, stating, “Chainlink’s GitHub development activity has been notably higher this summer, leading to the asset cracking the top five most frequently developed assets,” further highlighting the bullish outlook. 

CCIP Gaining Momentum

Chainlink, of course, has some promising developments, for example, the partnership with SWIFT, the bank transfer network currently testing the eagerly anticipated Cross-Chain Interoperability Protocol (CCIP). This collaboration aims to connect financial institutions to blockchains using CCIP, which Chainlink’s co-founder Sergey Nazarov sees as a bridge between various chains, much like TCP/IP for finance.

CCIP’s security model is rooted in Chainlink’s reliable pricing oracles, known for thwarting risks like flash-loan attacks. CCIP’s availability on testnets like Ethereum and Polygon reflects Chainlink paving the way for CCIP’s wider adoption on the mainnet. Chainlink received validation from Coinbase when it became clear that its layer 2 BASE would use Chainlink as a price feed.

“Chainlink Price Feeds are one of the leading price data solutions for developers when it comes to security, reliability, and usability,” said Coinbase Head of Protocols Jesse Pollak, who also holds responsible for creating BASE.

Chainlink Price Feeds will allow developers to transition their current application to BASE, based on Ethereum but with much lower gas fees and in a highly scalable environment. This will provide developers with opportunities to enhance the capabilities of BASE by offering reliable price data and expanding the potential applications that can be built on its advanced infrastructure.

Additionally, a project by Lendvest aims to integrate CCIP for its decentralized credit scoring system. CCIP allows secure communication between blockchains, letting Lendvest aggregate borrowing and lending data from Ethereum and Avalanche. This integration will offer accurate credit scores through a secure and decentralized blockchain protocol, improving transparency and lending mechanisms in DeFi.

In a statement, Lendvest said: “Currently, there is no established credit score framework that provides material benefits to crypto users. Lendvest aggregates on-chain data to create decentralized data feeds to form a verifiable credit score for DeFi protocols.”

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