Chainlink rises 50% - what's behind the price hike?

After more than two years of accumulation, Chainlink (LINK) is up more than 50 percent in just one month - is a mega-run about to begin?

Chainlink provides a bridge between data from the "real" world and the blockchain. It enables smart contracts in blockchain networks to access trusted data sources inside and outside the crypto universe. The project is thus a core component of the crypto infrastructure and benefits significantly from the general adoption of the crypto sector. It is precisely this key position in the crypto ecosystem that makes Chainlink particularly attractive to many investors right now.

In the past 30 days alone, Chainlink has posted an impressive share price increase of more than 50 percent seen. Interestingly, such a rise in the last cryptocurrency cycle was the sign of an upcoming bull run. So are we in for a repeat of history? Does Chainlink have what it takes for a mega-run? And if so, why right now?

A look back at the last cryptocurrency cycle

A look back at Chainlink's last major price rally in 2020 gives us hope. A flight to the top (blue circle) was followed by a consolidation phase in 2021 and a recovery in 2023. The last time such a price trend was observed, LINK's price broke out sharply upwards.

But not only LINK saw its share price rise rapidly during this period. Chainlink seemed to foreshadow the beginning of a new bull phase in the crypto market.

"History doesn't repeat itself, it rhymes." Looking at LINK's current price performance, this quote seems almost tailor-made. And while the price action brings back memories, Chainlink is currently buzzing with both historical price action and fundamental news. So the perfect storm for a further rally could have strengthened.

The driving forces behind the recent LINK rally

Strategic partnerships: Chainlink not only works with technology giants such as Google and Microsoft, but also recently partnered with SWIFT - the heart of global financial communications. Chainlink could thus play an important role in tomorrow's financial system and be the key partner of many large banks and companies looking to dive into the crypto sector in the future and need a reliable data source.

Tokenization of real assets (RWAs): The vision of tokenizing physical assets in the digital world on blockchains is increasingly becoming a reality. This is where Chainlink comes in, at the forefront of bringing these real assets into the crypto ecosystem. LINK helps ensure that these assets can interact with DeFi applications and that all relevant data is correctly passed to smart contracts. The growing trend of tokenization could therefore give Chainlink a further boost in the coming years and help the Oracle protocol gain even more adoption.

Further adoption in DeFi: Chainlink's use cases go beyond RWAs, however. Numerous DeFi projects already rely on the protocol. They are receiving more and more data from Chainlink. So with increasing network effects, Chainlink seems to have great growth potential in this area as well.

Trust of whales and developers: In addition, data from Santiment That whales have accumulated LINK in significant quantities in recent weeks. This is a strong signal of confidence to the market. But not only do whales seem to have high confidence in Chainlink, Chainlink's development activity on GitHub has also been above average in recent months.

Bron: Santiment

Conclusion

So behind the rise in Chainlink's share price is strategic partnerships, increasing adoption and a big boost in confidence from both institutional investors and the developer community. Therefore, there currently seem to be indications that Chainlink could continue to grow in the coming years.