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LINK gains 7% as Chainlink begins tokenization

  • Chainlink has seen a significant increase in price as hype surrounding its tokenization capabilities grows.
  • CCIP, Data Feeds and Proof-of-Reserves are some of the solutions Chainlink is using to drive the tokenization revolution.

Decentralized oracle network provider Chainlink recently saw a 7% increase in the price of its native token LINK amid its tokenization journey. LINK’s rise also follows hype surrounding the launch of eight spot Ethereum exchange-traded funds (ETFs) in the United States.

Chainlink’s role in the tokenization of financial markets

In a recent blog entryColin Cunningham, Head of Tokenization and Alliances at Chainlink Labs, highlights Chainlink’s role in tokenizing financial markets. Cunningham began by noting that financial markets are gradually moving toward tokenization due to its numerous benefits.

According to Cunningham, the magic behind tokenization lies in converting real-world assets into digital tokens. The World Economic Forum (WEF) even predicts that tokenization has the potential to destroy $867 trillion worth of assets.

Tokenization opens up a world where transactions are instantaneous, reducing costs and streamlining cross-border payments using blockchain technology. Notably, this revolution is not limited to financial institutions. Individuals and organizations of all kinds can benefit from it.

Asset managers, pension funds and even retail investors can access a global marketplace for fractionalized assets that previously seemed out of reach. Real estate, art and other traditionally illiquid assets become easily tradable, opening a new era of financial inclusion.

At the heart of this transformation is Chainlink, a platform that provides the critical infrastructure and ecosystem for a thriving tokenized asset economy. According to Cunningham, Chainlink acts as DNA, providing services such as CCIPData feeds and proof of reserves to ensure the integrity and reliability of tokenized assets.

Beyond technology, Chainlink bridges the gap between traditional finance (TradFi) and decentralized finance (DeFi). For example, Chainlink has activated transactions worth over $10 trillion in collaboration with organizations such as Swift, DTCC and ANZ Bank.

The impact of tokenization is already visible, with 21Shares, a leading issuer of crypto-backed ETFs, using Chainlink to verify its reserves. Matrixport, a leading digital asset custodian, also uses Chainlink to secure the minting and movement of tokenized U.S. Treasury bills. These are just a few examples of the transformative power that Chainlink unleashes.

LINK shows bullish signal

Amid Chainlink’s revolution in the tokenization industry, LINK price remains on a positive trajectory. At press time, LINK is trading at $17.42on a 7% Increase in the last 24 hours. Trading volume also increased by 97.4% to over 1 billion dollars, while the market capitalization increased by 7% to 10.2 billion dollars.

According to on-chain analysis, 11 Chainlink transactions recorded profits for every transaction that recorded a loss. This ratio represents the highest level since December 8, 2022, and indicates a bullish outlook for the protocol’s recent price movements.

Notably, support at $14.62 could signal an 18% rally for Chainlink to retest the $17.5 resistance level. In a bullish scenario, a successful breakout of this level could push LINK to $22. This represents a total gain of 50% amid Chainlink whale accumulation, per Previous announcement from Crypto News Flash.

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