A recent surge in Chainlink’s cryptocurrency, LINK, is grabbing attention as it outpaces other digital assets in the market. Analysis from Santiment, an on-chain analysis provider, suggests the uptick may be linked to previously inactive wallets resuming activity within the network.
Renewed Activity Fuels Market Momentum
Santiment’s data from February 2nd highlighted a significant spike in the metric known as Age Consumed, reflecting LINK moving after a period of dormancy. This uptick in circulation is thought to be a contributing factor to LINK’s price rise. Additionally, Santiment has noted that smaller wallets within the Chainlink ecosystem have been offloading their holdings, a sign often interpreted as fear, uncertainty, and doubt (FUD), which paradoxically could lead to further price increases.
LINK Price Hits 22-Month High
The LINK token experienced a notable price increase, reaching an intra-day peak of $18.13, the highest since April of the previous year, following market openings in Asia. Current trends suggest that $28 could be the next significant resistance point for the cryptocurrency. This rally has pushed Chainlink’s profitability to 30% over a seven-day period and pushed the network’s market capitalization above $10 billion, surpassing Tron and moving into the twelfth rank by market value.
Chainlink’s price movements and the ensuing market excitement are tied to its role in tokenizing real-world assets. The network has recently emphasized its capabilities to traditional financial institutions, highlighting the need for data, computation, and cross-chain functionalities. Chainlink’s infrastructure is uniquely positioned to provide these services. Additionally, on-chain influencer “Satoshi Flipper” highlighted Chainlink’s involvement in the Xswap protocol, which leverages the Cross-Chain Interoperability Protocol (CCIP) introduced in July to ease cross-chain transactions.
The price movement in Chainlink and the resulting FOMO are largely associated with the momentum created by real-world asset tokenization. On February 2nd, the network’s X account reminded its followers that it is the industry leader in this sector.