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Chainlink prioritizes Real World Asset Tokenization in 2024, LINK price eyes comeback to $16

  • Chainlink’s Q4 update unveils the project’s plan to support virtual tokenization of Real World Assets on the blockchain.
  • Chainlink started with an emphasis on meeting the growing demands of DeFi, the protocol is now focused on developing on-chain economies.
  • LINK price climbed nearly 2% in the past 24 hours, the altcoin is likely to make a comeback to $16.62 in December.

In its fourth-quarter 2023 update, Chainlink outlined its three priorities for the upcoming year. Chainlink’s plans are  the launch of its Cross-Chain Interoperability Protocol (CCIP), the introduction of a new data solution, and the launch of functions for developers on the blockchain.

Chainlink has shifted its focus from boosting cross-chain transaction speed to meeting the demands of projects that plan on virtual tokenization of Real World Assets (RWAs), making them liquid and more accessible for users.

Also read: Chainlink data feeds go live on Polygon zkEVM, MATIC price eyes likely recovery

Chainlink to lend momentum to Real World Asset Tokenization

  • Chainlink launched its CCIP technology to secure cross-chain transactions and activity on the blockchain. This was welcomed by banks and financial institutions that engaged Chainlink’s CCIP. 
  • The blockchain project presented a low-latency data solution, Data Streams, to unlock on-chain derivatives to power dApps. For developers, LINK launched Functions. 
  • Chainlink’s plan for 2024 is to shift its priority from CCIP technology used by banks and financial institutions to Real World Asset Tokenization. 
  • RWAs are fungible or non-fungible tokens representing traditional blockchain financial assets. 
  • LINK plans to aid the RWA revolution, wherein several projects are working on tokenizing assets in the real world and require Chainlink’s technology to power the transition. 
  • Chainlink’s technology supports DeFi’s value proposition, it boosts security and reliability through its infrastructure. 

LINK price eyes recovery

Crypto analyst behind the X handle @Mangyek0 predicts a 9% to 13% bounce in Chainlink price. The analyst is bullish on LINK, predicting an increase past the $15.5 level, as seen in the chart below. 

LINK

LINK/USDT 4-hour chart 

At the time of writing, LINK price is $14.36 on Binance. 

Author

Ekta Mourya

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.

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