Chainlink‘s (LINK) price today reached its highest level in the last 22 months. This surge allowed the leading decentralized oracle network’s native asset LINK to break out of the range it had been stuck in for the past three months.
Chainlink Breaks Out of the $13-$17 Range
LINK, the 13th largest cryptocurrency by market value, surpassed $18 during European trading hours, achieving a 15% gain in the last 24 hours, its highest level since April 3, 2022. According to current data, LINK’s price has risen nearly 30% over the past week, outperforming major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH). This rise marks an exit from the three-month range of $13 to $17, signaling a continuation of the recovery from the low levels of around $5 in June 2023.
Over the years, Chainlink has emerged as a critical component of the cryptocurrency world’s infrastructure, connecting blockchains to external world data through its oracles and various partnerships. Its blockchain-agnostic infrastructure allows compatibility with different blockchains and enables the seamless and secure transfer of funds from one blockchain to another.
Last week, Chainlink stated, “Traditional financial institutions require data, computation, and cross-chain capabilities for the widespread adoption of blockchains and tokenized Real World Assets (RWA). The Chainlink platform alone provides all three together.”
Analysts at K33 Research last month pointed out that LINK is the safest way to capitalize on the increasingly strong tokenization story in the RWA market. Tokenization allows assets like gold, stocks, and real estate to be traded as digital tokens on a blockchain. According to Boston Consulting Group, the total market value of tokenized RWAs could reach $16 trillion by 2030.
LINK’s Open Interest in Futures Rises to $490 Million
On the other hand, the US dollar value associated with LINK futures broke records according to CoinGlass data, rising to as much as $490 million, more than doubling. In other words, the altcoin’s open interest increased by 62%, reaching 27.51 million LINK units. An increase in open interest indicates an influx of new money into the market. A rise in price accompanied by an increase in open interest is said to confirm an uptrend.
Furthermore, LINK’s perpetual futures funding rate continues to remain positive, though it is still significantly below the peaks of December 2023. This suggests that the market has not yet reached an extreme point on the bullish side.
