Chainlink experienced substantial increases in value, instilling a feeling of hope among its holders. This positive sentiment was evident in rising whale activity.
In fact, whales have been actively accumulating the token even as several top crypto assets in the broader market flatlined and have raked in more than $50 million of LINK in just two weeks alone.
According to the data compiled by prominent crypto analyst Ali Martinez, this cohort of investors has purchased more than 7.5 million LINK tokens in the last two weeks, worth around $53 million.
Such an accumulation trend depicted a positive sentiment among LINK whales as these entities potentially believe the token to be undervalued at the current price and expect it to climb higher in the future.
The accumulation of whale entities coincided with LINK’s price appreciation seen over the past several weeks. LINK’s climb has been steady, notching over 32% monthly, which catapulted the asset to $7.8. This upward price action subsequently pushed LINK’s year-to-date gains to approximately 40%.
However, LINK is currently attempting to reclaim its 2023 peak near $8.5. This level has proved to be a strong resistance area as the asset faced several rejections since April. A continued buying activity, on the other hand, could flip this long-running trend to favor bulls.
CCIP Adoption
The development side of things, especially Chainlink’s CCIP protocol, could potentially be another driver contributing to the newfound interest in the asset.
The Web3 oracle service provider recently announced a successful experiment proving that its Cross-Chain Interoperability Protocol (CCIP) can be used to facilitate cross-chain settlement using tokenized assets. According to the report, the experiment in question showcased ANZ Bank, which happens to be one of the largest banks in the world.
The study purportedly showcased how financial institutions can offer access to tokenized assets via blockchain technology. Most notably, it highlights a seamless route for banks to execute cross-border settlements more swiftly and efficiently.
As reported earlier, the Chainlink ecosystem aims to position CCIP as the “new gold standard” for interoperability. Aligning with the goal, the protocol has been launched across six networks – Ethereum, Polygon, Avalanche, Polygon, Optimism, Arbitrum, and Base.