From time to time we find cryptocurrencies that perform well despite depressed market conditions. However, some of these strong performances last for very short periods like one day or week. The major cryptocurrencies like bitcoin, ETH, Solana and LINK often experience such breakouts and at times breakdowns. In this analysis, we focus on the recent Chainlink’s LINK price surge.
LINK’s Recent Price Surged Linked to Dormant Wallets Activity
A recent surge in the value of Chainlink’s LINK that has outperformed many leading cryptocurrencies has grabbed the attention of the crypto market. Link price rose on 2 February to hit a daily high of $18.68 as the following graph shows.
As you note on The Graph, since 2 February the Link price has been fluctuating between $17.60 and $19.70. As a result, the coin gained by over 30% within a 7-day period, leading to a 22-month high of $18.13. LINK last surpassed $18 in April 2022. That was a few months after it reached $28 in January of the same year. Incidentally, at the moment $28 is the next key resistance level.
Factors behind LINK’s Surge
There are several reasons why LINK is pumping. However, the resumption of activity of many recent dormant wallets is probably the biggest cause of its current soaring price. On 2 February Santiment, a crypto market intelligence platform, reported that the LINK price surge has been linked to some dormant wallets’ renewed activity.
Furthermore, Santiment used the following graph to illustrate the renewed dormant LINK wallet activity increase.
As observed on the diagram, Santiment commented, “Large coin amounts were moved by previously stagnant wallets, making the average LINK Investment Age go from 544 to 532.” It was this influx of LINK into circulation that has contributed to its bullish momentum.
Apart from some minor liquidations of LINK positions several smaller wallets offloaded their holdings, a clear sign of fear, uncertainty, and doubt (FUD) which might have led to a short-term price spike.
According to Lookonchain, Link is within an accumulation phase and several whales are on a spree to buy LINK. However, during the past weeks some Chainlink holders withdrew more than 119,583 LINK tokens valued at over $2.15 million from Binance exchange.
After that large withdrawal a whale wallet purchased over 2.7 million LINK tokens, worth around $49.9 million, as the following screenshot denotes.
Looking at these few examples, it is clear that there has been much activity on the chainlink ecosystem since 2 February which have contributed to the prevailing altcoins market conditions. Apart from Link, there are other crypto gainers like SOL and Matic whose prices increased by large margins.
Effect of Asset Tokenization Announcement on Price of Chainlink
The announcement that chainlink is a leader in asset tokenization created much hype and FOMO that resulted in the recent LINK price surge. Specifically, on 2 February the network reminded its users that it is the industry leader in real-world tokenized assets (RWAs).
Posting on X Chainlink stated, “Traditional financial institutions need data, compute, and cross-chain capabilities to adopt blockchains and tokenized RWAs at scale. Only the chainlink platform provides all three.” After that announcement LINK price started rising.
There is no question that asset tokenization, especially real-world tokenized assets (RWAs), is one of the leading narratives in the crypto market for 2024. This is because there are many large traditional institutions such as JPMorgan and SWIFT that are interested in investing in Real World Assets (RWAs) and other asset tokenization.
As a leading cross-chain swaps protocol, chainlink is at the intersection of TradFi and DeFi as it brings offline price feeds and data points on-chain. Therefore, it supports both the crypto industry and the real-world asset sector.
Other Trending Altcoins
As of 2 February, the time when LINK gained by a large margin, many crypto assets were also in green. For example, the price of SOL increased by 5.3% to close above $100 again.
Also, MATIC, the utility token of Polygon – a layer-2 platform – rose by around 4.9% to end the day at $0.80. The other crypto gainers were Internet Computer (ICP) and Immutable (IMX) that spiked by 9.2% and 15%, respectively.
Nonetheless, investors who buy LINK now may gain in the near future as we approach the 2024 bitcoin halving event.
Chainlink Price Prediction
At the time of writing, chainlink market indicators are showing a bullish outlook . Some pessimistic analysts anticipate that the value of the cryptocurrency may reach $29.14 by the end of 2024.
Nevertheless, the Price Prediction like Gate.io forecast the price of LINK to reach $60 by the end of 2030. Another on-chain crypto analytic platform, Gate.io, says that the highest possible value for LINK in 2024 is likely to be $40.20 as the next table indicates.
With these predictions, we anticipate the price of LINK to fluctuate between $29.14 and $60.
How to buy LINK on Gate.io
To buy LINK on Gate.io you need to follow several simple steps. First, create and verify your account on the exchange. If you already have an account, login and select the payment method you want to use.
You can use a credit/debit card, wire transfer or P2P trading to buy cryptocurrency at Gate.io. If you hold any major cryptocurrencies like bitcoin, ETH and USDT you can simply convert any of them to LINK. Now, to start the buying process you hover your cursor on Buy Crypto and select your preferred payment method, as the following picture indicates.
Once you click on your preferred payment method, follow the instructions you get.
Conclusion
On 2 February the value of LINK surpassed $18 to attain a 22-month high of $18.13. The hype around RWAs, dormant wallet activity and whale accumulation are the key factors driving its current value up. Crypto analysts anticipate the price of chainlink token to fluctuate between $2914 and $60 by the end of 2024.
