- LINK price is up 10% on the back of a 160% surge in 24-hour trading volume.
- The uptick follows Chainlink network activating its Cross Chain Interoperability Protocol on Ethereum, Optimism, Polygon, and Avalanche blockchains.
- As the biggest oracle provider in crypto, Chainlink founder and CEO Sergey Nazarov says the move will link DeFi with TradFi.
- Multiple banks have signed in to leverage CCIP’s complete token transfer capabilities while DeFi leaders look to unlock cross-chain economy.
Chainlink (LINK) price is bullish, defying current bearishness in the crypto market as Bitcoin (BTC) fails to provide direction. The token’s stats are flashing green on CoinMarketCap, suggesting optimism in the LINK market. It comes amid a new network development poised to meet users where Decentralized Finance (DeFi) and Traditional Finance (TradFi) intersect.
Also Read: Whales are secretly accumulating these two DeFi coins: LINK, UNI
LINK market shows optimism as Chainlink activates CCIP
LINK, the ticker token for the Chainlink ecosystem, is enjoying the rewards of a bullish market, rising almost 10% in market value alongside a 160% increase in 24-hour trading volume.
The bullishness rides on the back of a new Chainlink network news involving the integration of decentralized finance (DeFi) with traditional finance (TradFi) for user convenience.
1/ The Chainlink Cross-Chain Interoperability Protocol (CCIP) has officially launched on Avalanche, Ethereum, Optimism, and Polygon mainnets.#LinkTheWorld pic.twitter.com/SdLVyaapg3
— Chainlink (@chainlink) July 17, 2023
In a July 17 blog announcement, Chainlink founder and CEO Sergey Nazarov revealed the network’s plans to activate its Cross Chain Interoperability Protocol (CCIP), which will be available to developers beginning July 20.
Chainlink’s CCIP leverages Oracle network for a competitive advantage
Based on the announcement, CCIP will leverage Chainlink’s expansive Oracle network as a competitive edge while capitalizing on TradFi associations. The feature will run on the Ethereum, Optimism, Polygon, and Avalanche blockchains to provide a communication bridge between networks, including the safe transfer of data and assets.
5/ On July 20, CCIP will become available to all developers across five testnets:
— Chainlink (@chainlink) July 17, 2023
• Arbitrum Goerli
• Avalanche Fuji
• Ethereum Sepolia
• Optimism Goerli
• Polygon Mumbai
Sign up here to get notified as soon as it’s available on testnet: https://t.co/gdE5wd7W8L
Nazarov told Blockworks that:
One oracle network is responsible for channeling messages and value. The other one is responsible for monitoring and determining if the properties of the transactions going through the first one are risky or not.
Besides serving as a bridge, CCIP can also facilitate the full token transfer, with the press release highlighting the presence of a distinct Active Risk Management (ARM) network. This network like banks, prevents malicious cross-chain activities by halting services upon the slightest suspicion, thus protecting user funds.
LINK’s CCIP meets users at the DeFi-TradFi intersection
Chainlink’s Cross Chain Interoperability Protocol can link DeFi with TradFi, with up to nine banks already signed up for CCIP’s token transfer capabilities. Citing a press release, these banks include “Australia and New Zealand Banking Group (ANZ), BNP Paribas, BNY Mellon, Citi, Clearstream, Euroclear, Lloyds Banking Group, SIX Digital Exchange (SDX), and The Depository Trust and Clearing Corporation (DTCC).
One use case for the CCIP, as used by the Society for Worldwide Interbank Financial Telecommunication (Swift), is for global banks to bring industry-grade valuable asset tokens into the DeFi space. According to Nazarov, this will ultimately expand the blockchain industry while providing diversified collateral.
Chainlink price rises 10% on the news
Chainlink (LINK) price is up almost10% on this news, extrapolating the bullishness that began around June 21. This is indicated by the Parabolic SAR indicator, which continues to track the asset’s price for a consecutive 30 days.
The Relative Strength Index (RSI) points north, suggesting rising momentum. This, coupled with the position of the Moving Average Convergence Divergence (MACD) indicator above the midline, shows that bulls are leading the market.
Accordingly, Chainlink price could extend north to tag the $7.7 resistance level or reclaim the April 18 highs around $8.5 in a highly bullish case. Such a move would constitute a 20% climb from the current levels.
LINK/USDT 1-Day Chart
Conversely, if profit-takers pull the trigger, Chainlink price could lose the support offered by the 200-, 50-, and 100-day Exponential Moving Averages (EMA) at $6.7, $6.4, and $6.2 levels, respectively, before a retest of the formidable support at $5.7.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Turn off Solana and win $400,000 - Solana Foundation executive announces offer
Solana has been touted as an Ethereum killer, but as with every blockchain in the crypto market, the network does not come without its fair share of issues. While many who get hacked or exploited deal with the issues after the fact, Solana intends to get a step ahead by making a very lucrative offer to white hat hackers.
Grayscale vs. SEC deadline: Commission faces a midnight Friday deadline to challenge August 29 loss
Grayscale Investments secured a resounding victory in its longstanding case against the US Securities and Exchange Commission in late August. The lawsuit started in October after the firm approached the D.C. Circuit Court pushing to have its Bitcoin Trust converted to an Exchange-traded fund.
Loom Network price hits strong weekly resistance after 32% surge as LOOM ranks high on Korea’s Upbit
Loom Network token is highly bullish, passing as a rather lucrative investment for scalping traders, buying and selling the asset within a short period to make small profits.
Voyager founder charged by CFTC for fraud and by FTC for misleading investors that lost $1 billion
Voyager was among the first crypto companies to collapse and file for bankruptcy in 2022. While the platform has been making efforts to return its customers' assets since then, it looks like the regulatory bodies are not willing to be patient.
Bitcoin: Can BTC bears challenge crypto’s 2023 bull rally?
Bitcoin (BTC) price is at a critical juncture in the weekly time frame, where bulls and bears are battling for control. However, a multi-time-frame analysis shows that BTC is bullish daily and is likely to rally higher.