Chainlink is riding the bull market wave, leading altcoin gains in what top analysts in the ecosystem are tagging a rare surge
Chainlink’s native token, LINK, has recently jumped in price by 29%, catching the attention of the cryptocurrency community. Many supporters, including Zach Rynes, called ChainLinkGod on X, claimed that LINK was the true “bank coin.” He compared it to XRP, which has a long history with financial institutions. This price increase shows LINK’s growing importance.
LINK: The Diverse Utility Token
According to CoinMarketCap, the token rose to $26.00, almost a 30% increase in 24 hours. The token also gained 53% over the last seven days. One possible reason for LINK’s rise is the overall market rally due to XRP’s recent price recovery.
Chainlink’s blockchain oracle network is also crucial to its growth. Recent updates in the ecosystem, such as new partnerships, integrations, and improvements, have increased investor confidence in LINK’s long-term potential. Likewise, community support is a key factor in LINK’s rise. Per Rynes, the usefulness of Chainlink and growing popularity make it a better candidate for the title of “bank coin” than XRP.
Seeing a narrative that $LINK is “just an oracle” while $XRP is the bank coin
This couldn’t be further from the truth@Chainlink is verifiably working with the largest financial institutions in the world on connecting banks to blockchains
This includes:
– Working with… pic.twitter.com/fBrJq81suG
— Zach Rynes | CLG (@ChainLinkGod) December 2, 2024
While XRP mainly focuses on cross-border payments and getting financial institutions to adopt it, LINK offers a wider range of applications. It provides dependable data feeds for automated systems across different sectors. This broader use could position LINK as an essential asset in the digital economy.
Chainlink: Solving Cross-Chain Privacy Challenges
In October, Chainlink introduced a privacy feature on its flagship CCIP interoperability protocol, fueling the ongoing LINK rally. The Chainlink Cross Chain Interoperability Protocol (CCIP) is now privacy-centric. Notably, the technology enables discreet transfer across several privacy chain networks. As such, financial institutions interested in utilizing blockchain applications can ensure complete end-to-end privacy.
Furthermore, the Chainlink Blockchain Privacy Manager guarantees data integrity and confidentiality for financial institutions transacting across blockchains. Before now, the lack of a secure cross-chain privacy guarantee has posed a challenge that discouraged financial institutions from adopting it.
However, with the launch, Australia and New Zealand Banking Group (ANZ) will be among the first to utilize this security solution. ANZ Bank will incorporate the technology in the settlement of tokenized real-world assets (RWA) in compliance with the Monetary Authority of Singapore (MAS) initiative Project Guardian.
Intriguingly, the privacy boost to CCIP triggered a mild rally in the price of LINK. With the new update and the potential for CCIP adoption, LINK might see more embrace in the long term. In particular, institutional investors might drive this rally across the board.
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