Chainlink price rallies by 20% after founder’s ambitious words generate a bullish response
- Chainlink price is trading above $8 and has nearly recovered all the losses witnessed in the last three months.
- Chainlink recently launched a cross-chain interoperability protocol (CCIP), which co-founder Sergey Nazarov thinks would propel the blockchain industry and bring trillions of dollars from banks.
- The network noted a surge in bullishness, noting $1.3 billion in transactions, a majority of which were in profits.
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Chainlink price rise led the crypto market gains on Thursday as the altcoin found sudden optimism from its investors. The reason behind this was a speech from the project’s founder that highlighted the potential impact of their new service on the blockchain industry.
Chainlink price rallies to a three-month high
Chainlink price could be seen trading at $8.2 after noting a near 20% rally in the span of 24 hours, up from $6.9. The green candlestick marked the largest single-day growth for the altcoin this year, bringing the cryptocurrency to a three-month high and near the year-to-date high of $8.5.
LINK/USD 1-day chart
Chainlink price shot up on Thursday following the comments from its co-founder, Sergey Nazarov, during an interview at the EthCC event. Nazarov was discussing the company’s newly launched cross-chain interoperability protocol (CCIP), which would ease the transfer of funds between blockchains.
Nazarov stated that he believed this technology would serve as a huge advantage for banks and other major financial institutions if and when they roll out their own blockchains. This way, if they connect to a public blockchain, it would bring significant growth to the crypto market as well.
In an interview with The Block, Nazarov stated,
“...when that happens, beyond the efficiencies and the gains for each of these groups, then you will see the blockchain industry as a whole, I think grow very, very rapidly by trillions of dollars.
LINK investors seemed to have taken a liking to this potential as soon after the altcoin began rallying and hit the aforementioned highs. This was reflected in their behavior on-chain as well since they conducted more than $1.3 billion worth of transactions in the span of 24 hours.
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Chainlink transaction volume
Most of these transactions ended up generating profits for the LINK holders, which makes the market susceptible to potential profit-taking. If such selling was to take place, the cryptocurrency is bound to absorb some selling pressure.
However, up until the time of writing, the supply of exchanges has only observed a decline and not incline. This translates to optimism from investors of a further increase in price, which is why they have been mostly accumulating for the past month, ramping it up in the last week.
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Chainlink supply on exchanges
Nearly 5 million LINK tokens worth $40 million were bought by investors this past week, bringing the total accumulation over the month to $112 million. LINK holders should be wary of potential profit-taking as that would result in a sustained decline in Chainlink price.
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Author
Aaryamann Shrivastava
FXStreet
Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.
