Chainlink He succeeded in the face of difficulties. On a monthly basis, Bitcoin increased by 1.7%, while Ethereum fell by 1.6%. Other altcoins such as Solana, Cardano MATIC and XRP lost 3%-8% of their value. However, LINK attracted attention by rising by 33% in the same time period. In this process, it has already canceled out the 22% loss recorded last month. Looking back, LINK was up 24% in Q3.
In the process, LINK even moved up one step on the ranking list. Its market capitalization surpassed SHIB for a while, ranking 17th. As shown below, the market cap change occurred just a few hours ago.
On the weekly time frame, Chainlink recorded an uptrend from the downtrend line that started in 2021. As a result, analysts such as ‘Rekt Capital’ have begun to question whether the macro downtrend is completely over. In fact, others such as Michaël van de Poppe have also noted LINK “rolling” towards its higher range. So, does this make it possible for the altcoin to finish 2023 with a good performance?
All macro indicators show that Chainlink is at a critical point. In 2021, the asset gathered liquidity in the $6.8 to $11.2 range for several months before launching its 370% rally. For the last few months, LINK has probably been doing the same thing, but buyers’ faith is lacking. However, with this narrative shift in Q3, things may improve going forward. Currently, LINK is only 12.3% below its high of $8.7 recorded in 2023. If the same momentum continues, it is only a matter of time before the asset reaches a new annual high.
From a long-term perspective, it is crucial that LINK turns its three-month resistance into support within the next few weeks. This will allow market momentum to carry the asset above the elusive $10 range in 2023.
On the core and network improvements front, LINK has been steadily making progress. Just a day ago, it expanded its cross-chain capabilities to Coinbase’s Base. Just before that, gaming platform BetSwirl integrated Chainlink’s CCIP into the Arbitrum, Avalanche, Ethereum and Polygon mainnets. In fact, Sergey Nazarov recently brought to light that CCIP is the “only” cross-chain infrastructure that provides level 5 cross-chain security. Even community members are optimistic about Chianlink’s benefit prospects. Maple Finance Business Operations Manager recently tweeted:
I expect something similar for CCIP. Much more value will flow from interbank transfers alone. It unlocks a wider range of uses than we can currently imagine.
Such developments will give the project long-term credibility and will likely reflect positively on LINK’s valuation going forward.
Digital businesses typically create 10-100x more value than their analog peers.
This is because margins are better due to network effects and because it unlocks tail end use cases that aren’t possible in the real world.
I expect something similar for $CCIP. Much more value will…
— Fundamentals & Tokenomics (@Fundonomics) September 26, 2023