ChainLink Leads the Market with 61% Weekly Gains — What’s Driving LINK’s Price?
The Chainlink LINK (LINK) token rose by a whopping 61.3% from October 20 to October 25, reaching a high of $11.78 and marking the highest point since May 2022. LINK's price has since stabilized around $10.50, leading investors to question its sustainability. A new level.
It's worth noting that this increase coincided with Bitcoin (BTC)'s 23% gain over the same period. However, LINK's performance stands out compared to Ether's (ETH) 14% rise and SOL's (SOL) 28% rally, suggesting higher sentiment for ChainLink's leading Oracle and decentralized computing solutions.
Chainlink's partnerships and integrations support the parade
A number of recent developments have contributed to LINK outperforming its peers. In particular, the announcement of Chainlink's native staking upgrade, which will be released in the next two months, has received a lot of attention. The first pool was a resounding success, filling up in less than three hours, and the planned expansion promises more flexibility with staking withdrawals, improved security guarantees and dynamic rewards.
In addition, Chainlink's entry into various blockchain networks has created optimism among LINK investors. For example, on October 15, ChainLink unveiled its advanced Crypto Strategies DAO, multi-chain product facilitator and automated liquidity manager and equity leveraged service for Pendle Financial.
On October 22, Chainlink services were integrated into Kobo Global, an institutional-grade digital custody solution, Staffy Protocol's liquid staking solution for proof-of-stake chains, Ethereum on-chain derivatives platform Thales Market, and Xena Finance. 50x permanent futures on Coinbase's Base chain.
On October 24, telecom giant Vodafone made a landmark announcement of its digital asset involvement as a node operator in the Chainlink network. This comes after it completed certification with Japanese trading and investment company Sumitomo to exchange business documents across platforms.
FTX and Alameda research dispelled the fear of bankruptcy
On September 13, the Delaware Bankruptcy Court approved the sale of FTX and Alameda Research's cryptocurrencies, LINK price came under pressure. First, there were concerns that it could destroy $3.4 billion worth of digital assets, including LINK. Market failure. However, in recent times, transfers through wallets associated with bankruptcy proceedings have been slow and have had little impact on prices.
As concerns related to FTX and Alameda Research's losses receded and renewed interest in mid-cap altcoins pushed Bitcoin above $32,000 on October 23, investor interest in LINK grew. Therefore, the demand for long positions used in LINK has reached a three-month high as indicated by the financial frequency.
A positive funding rate indicates that longs (buyers) are looking for more leverage, while the opposite is the case when shorts (sellers) are looking for more leverage, leading to a negative funding rate.
It is worth noting that the current eight-hour rate of 0.014% translates into a seven-day rate of 0.3%, which is not useful for traders who build futures positions. Typically, when volatility is driven by excessive optimism, the rate can easily exceed 1.0% per week.
Related: Sam Bankman-Fried denies cheating FTX users during trial
Additionally, according to data from Mesari and Coin Metrics, the number of active addresses in the Chainlink network has reached an 11-month high.
Interestingly, the previous peak occurred on November 7, 2022, when FTX-related issues drove LINK's price to a six-month high of $38.32. This coincides with concerns over FTX's recovery and the impact of the native FTX Token (FTT) following Changpeng “CZ” Zhao's decision to liquidate Binance's FTT holdings the previous day.
The following 30 days turned out to be very negative for the price of LINK, with the token falling by 51.7% to $18.50. However, LINK fans needn't worry at this point given the tangible developments in the ecosystem and the promising developments in ChainLink's native stadium solution.
This article is not intended for general information purposes and should not be construed as legal or investment advice. The views, ideas and opinions expressed herein are solely those of the author and do not necessarily represent the views and opinions of Cointelegraph.
