Chainlink’s token LINK is ripping hard. It is moving against most of the market and is up 36% in the last 30 days. You might argue with me. That is why this pump is no different. Such pumps are pretty normal for the crypto market.
I agree. This is normal. But for a project like Chainlink, something extraordinary must be brewing up to lead to this pump in the current sideways market. Me and my research team set out to find out what is happening and we uncovered 3 strong reasons for this pump. You might be aware of 2 reasons but I am sure the 3rd one might take you by surprise.
Reason #1: Chainlink’s Whale Accumulation
Some mysterious entity has accumulated a staggering amount of LINK tokens. In the past 2 days LINK worth $42 million has been accumulated by this single entity reported by LookOnChain. This is still unclear whether this is a single crypto whale or an institution accumulation.
A mysterious whale/institution is accumulating $LINK!
We noticed that a total of 47 fresh wallets withdrew 2,237,504 $LINK ($42.38M) from #Binance in the past 2 days!
Address list: https://t.co/cYgH52rHzxhttps://t.co/SgFeI8cRKV pic.twitter.com/g7Mh66k9l0
— Lookonchain (@lookonchain) February 6, 2024
This intriguing activity suggests a strategic move by an entity with considerable financial backing and confidence in the future of Chainlink. Notably, this accumulation spree is not an isolated incident.
In January crypto whales accumulated more than 57 Million Link tokens worth over $855 Million. Why this sudden surge? Do these whales know something that we are unaware of?
Reason #2: CCIP
You must be aware that in July 2023, Chainlink brought out a major upgrade. Yes, I am talking about CCIP – Cross Chain Interoperability Protocol.
As is evident from the name, it is an interoperability solution that will connect blockchains. Synthetix was one of the first projects to get access to CCIP. And now when we look at its supported network list, it has expanded to Ethereum, Polygon, Optimism, Arbitrum, BNB Chain, and Coinbase’s BASE too.
Programmable token transfers—enabling value and data to move together across markets and between institutions—are a major step forward for the global financial system.
With Chainlink CCIP securely enabling both token transfers and arbitrary messaging within a single transaction,… pic.twitter.com/771VYZOdS8
— Chainlink (@chainlink) February 7, 2024
But, there is a twist. Before I reveal that, you must know that one of the most exciting aspects of introducing CCIP is its potential to link up DeFi with traditional financial institutions.
The good news is that SWIFT, Society for Worldwide Interbank Financial Telecommunication, announced a trial collaboration between major banks and Chainlink’s CCIP for capital flow. But this happened in June 2023. Then why are whales accumulating now? Ok so let me come to that.
Look at this. Chainlink’s CCIP Mainnet is still not open to everyone. If a network wants to access CCIP, they need to Apply for it. But, very soon, CCIP General Access on the mainnet will be rolled out. How do you know this? We went detective mode! Take a look at this – Chainlink Product Update Q4-2023.
Here it states – “Expand access to CCIP by transitioning to Mainnet General Availability (GA), making cross-chain messaging and transfers of supported tokens on CCIP permissionlessly available to all developers, which we anticipate will launch early next year, subject to final testing.”
Now what does this mean? Almost 100 projects are running on the CCIP testnet at present. As soon as General Availability is rolled out, all of these will go live simultaneously with maximum impact. This scale of adoption leads to massive price pumps especially when a bullrun is just around the corner.
.@OriginProtocol is integrating #Chainlink CCIP as its exclusive solution to take Origin Ether (OETH) cross-chain with maximum security.
Read the full thread ⬇️ https://t.co/AqGR9PQFJu
— Chainlink (@chainlink) February 6, 2024
But that’s not it. There is a high possibility that Chainlink might be coming out with another massive update. An update that even BlackRock CEO Larry Fink is also looking forward to
Reason #3: Tokenized Identity
Larry Fink mentions that TradFi badly needs a tokenized identity system. And that reminds me of DECO by Chainlink which has a patent with a statement of U.S. government support.
But what is DECO? Why could this bring in a Trillion dollars to Chainlink? And is DECO ready to be released? To begin with, DECO is a privacy-preserving oracle protocol. What does that mean to you?
$LINK aside from tokenization of assets, Larry Fink also mentions a tokenized identity which everyone will have. kind of reminds me of #DECO made by #chainlink which has a patent with a statement of U.S government support. if only you knew… 😳 keep fading $LINK tho. pic.twitter.com/wWc7Qm91gZ
— nicu (@nicucrypto) January 13, 2024
Well, in simple words lets say you can prove it to an oracle that you are over 18, according to your online U.S. State Department account…without revealing your account password or birthdate (or even your name!) to the oracle.
Now this kind of privacy in the current web communication is much required and this is possible only with a tokenized identity which Blackrock CEO Larry Fink emphasizes. And Chainlink offers it. But is DECO ready? Well DECO went from being a concept to Proof of Concept in 2022. It’s been 1.5 years since Chainlink has the DECO code ready.
And now see this Jan 30 tweet from chainlink. Let me read it out loud for you Looking to get up to speed with how Chainlink is leading the charge on RWAs. And when I took a look at what architecture is supporting the RWAs on Chainlink, DECO is a major supporting block of it.
Looking to get up to speed with how Chainlink is leading the charge on #RWAs?
Here’s a starter pack👇…
— Chainlink (@chainlink) January 30, 2024
Even in this tweet, Chainlink talks about 7 that are important to power tokenized RWAs at scale and DECO is one of them. That means DECO is ready or near ready to be released and this will bring in major institutions to Chainlink. Whatever it is, Chainlink seems to be primed for a massive breakout.
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