- Chainlink rose among the projects with the highest development activity this month.
- LINK is changing hands near $12.30 – a high that acted as crucial support earlier this year.
Chain link [LINK] has been one of the trending crypto projects this year, propelled by the hype around tokenizing real-world assets. Tokenization allows physical assets to be mapped, stored and traded on a blockchain.
This conversion allows illiquid assets such as real estate to gain liquidity.
Chainlink’s oracle services play a crucial role in RWA tokenization by providing reliable data feeds between the underlying assets and decentralized applications. This prevailing tokenization narrative has gained even more momentum in recent months, strengthening LINK’s value proposition.
RWA tokenization as a bullish driver
In a recent post on X, Chainlink co-founder Sergey Nazarov said reaffirmed his belief that asset tokenization will transform the Web3 industry.
Nazarov doubled down on his expectations that the value of RWAs will likely exceed that of cryptocurrencies in the coming years, reflecting the value flowing in from the traditional financial world.
Nazarov’s bold projection was echoed by Chainlink, which envisions rapid growth of tokenized assets, accelerated by adoption from the institutional side and favorable regulatory developments.
In one report Chainlink provided an overview of the global market for tokenized assets and predicted that the market for tokenized assets would reach $10 trillion by 2030.
Chainlink is well positioned to leverage this potential shift thanks to its cross-chain interoperability protocol (CCIP), which general availability introduced in April 2024.
The open-source communications standard allows builders to develop secure applications that can transfer tokens, messages, or both across different chains.
Robust development activity
Notably, Chainlink has seen the second highest development activity among blockchain projects in the past month facts van Santiment, rose from fourth place according to the foregoing update.
Development activity is broadly seen as a measure of a network’s growth, providing an optimistic view of the project’s long-term potential.
Last week, Chainlink’s non-circulating supply wallet unlocked 18.125 million LINK deposited in Binance.
The transaction marked the ninth unlock with the onchain monitoring tool Lookonchain and noted that 7 of these occasions were accompanied by a price increase approximately a month after the unlock.
LINK/USD technical analysis
Chainlink (LINK) is changing hands at a critical level of $12.30, down 18% this year and more than 76% below its May 2021 high.
On the daily time frame, LINK has been trading above a long-term descending channel for the past seven days following the breakout on September 18. The LINK/USD pair has short- and long-term support levels at $8.09 and $5.68, respectively.
Source: TradingView
The Moving Average Convergence Divergence indicator on the daily chart crossed the signal line on September 10, indicating bullish momentum. Consistent green histograms since the crossover further confirm the growing upside traction.
Outside of the spot market, Chainlink’s open interest in futures markets is trending upward this month, indicating increasing interest from traders in the asset.
Source: Coinglass
CoinGlass data shows that the dollar value captured in open futures contracts linked to LINK rose 10.55% over the past 24 hours to 15.46 million LINK at the time of writing.
Open interest in futures contracts often correlates with changes in speculative activity and the expectation of a price movement.