Chainlink price begins recovery with successful completion of SWIFT experiment across multiple blockchains
- Swift and Chainlink announce successful completion of experiment to transfer value for institutions by connecting blockchains.
- The success of the interbank messaging giant’s experiment is likely acting as a bullish catalyst for LINK price.
- LINK price recovers, yielding nearly 2% gain onday.
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Swift, the interbank messaging giant, announced a collaboration with Chainlink back in June. As of August 31, Swift released a report and said that the experiment to transfer value across multiple blockchains was successfully completed.
The success of the experiment and bullish on-chain metrics are the two catalysts likely driving LINK price recovery.
Also read: Ethereum Cancun upgrade development is on track, testing phase comes next
These catalysts are likely fueling LINK price recovery
Swift released the results from a series of its experiments that show how infrastructure can be used to facilitate tokenized value transfer across multiple blockchains in the ecosystem. According to the protocol’s press release, the findings have the potential to remove friction that is currently slowing the growth of asset tokenization in the global market.
Swift says in its report that 97% of institutional investors believe this development and successful experiment can boost asset management in the industry and reduce costs. This also implies that Swift’s experiment opens the door to more investors to transfer value across multiple blockchains using Chainlink as a partner.
A key on-chain metric, supply of the token on exchanges is hinting at a bullish divergence. Based on data from crypto intelligence tracker Santiment, Chainlink has hit a key level, with nearly a 15.5% drop in its exchange supply. The on-chain metric is bullish and supports the likelihood of a price recovery in the altcoin.
Chainlink supply on exchanges as seen on Santiment
At the time of writing, LINK price has started its recovery on Binance. LINK is exchanging hands at $5.970 and yielded nearly a 2% gain on the day.
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
