Buy LINK Now? Chainlink Touted As ‘Safest Bet’ For This Mega Trend
12 October 2023 - 10:00PM
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Real-world assets (RWAs) are emerging as one of the next mega
trends in the crypto space, and according to a recent study by K33
Research, Chainlink could profit in a big way from this trend. In a
recent study, the research firm projected that LINK would be the
“safest bet” to capitalize on this impending boom. This sentiment
reflects the broader industry outlook, especially given BlackRock
CEO Larry Fink’s earlier comments in May where he noted the
potential of tokenization in securities. “The next generation for
markets, the next generation for securities, will be tokenization
of securities,” remarked Larry Fink during a New York Times
DealBook event. He further elucidated that tokenization, which is
the creation of a digital representation of an asset on a
blockchain, would facilitate “instantaneous settlement” and notably
reduce transactional fees. What Makes Chainlink The Go-To Choice?
The growing interest in the tokenization of RWAs, which includes
traditional financial instruments like private equity, credit, and
bonds, has paved the way for the increasing valuation of LINK.
Tokenization is no longer a buzzword but a mechanism to optimize
financial transactions by reducing costs, streamlining operations,
and enhancing transparency and accessibility. Related Reading:
Chainlink To Go “Parabolic” After Breaking 28-Month Downtrend?
David Zimmerman, an analyst at K33 Research, mentioned, “If we wish
to have exposure to the RWA narrative and avoid being sidelined
when it takes off, LINK is the safest bet.” Global financial
institutions and emerging cryptocurrency platforms are gearing up
to leverage this trend. A testament to this is JPMorgan’s recent
announcement about its first live blockchain-based collateral
settlement transaction, which involved industry giants BlackRock
and Barclays. Chainlink, as a project, has strategically positioned
itself in this domain, acting as a bridge between blockchains and
the external world. The project’s unique system of oracles and an
expansive list of partnerships emphasize its pivotal role.
“Chainlink, with its system of oracles and wide partnerships, is
well-positioned to connect blockchains with real-world data, making
it a strong player in the RWA narrative,” stated renowned crypto
analyst Scott Melker, echoing Zimmerman’s insights. Zimmerman
further opined that while Chainlink might not record the highest
gains in this RWA movement, its robust infrastructure and pivotal
role in the ecosystem make it one of the most well-placed projects
to harness the potential benefits. Related Reading: Chainlink
Creator Expects Mass Crypto Adoption To Send Market Cap To $10
Trillion Despite the undeniable potential and traction that RWAs
have gained, Zimmerman highlighted potential challenges in
realizing their full potential. Yet, the prevailing narrative’s
allure is so compelling that we might witness “an isolated RWA
crypto bubble” even before its tangible real-world impacts become
ubiquitous. Zimmerman’s advice to potential investors is to be
patient. The recommendation is to wait for the token to hit the
long-term support level of around $5.70 before diving into long
positions. LINK Price Remains Trapped In Trend Channel The
Chainlink price has been trading within a descending trend channel
since June last year. Even the recent hype around the partnership
with Swift and the SmartCon was not enough to push LINK out of the
trend channel. In total, LINK has been rejected at the upper
trendline six times, last on October 1. A bullish sign at the
moment is that Chainlink is holding above the 50% Fibonacci
retracement at $7.19 despite the sharp correction in the broader
crypto market. If this holds over the next few days, LINK could
attempt a retest towards the upper resistance line. If the support
breaks, K33 Research’s scenario could come true and Chainlink could
fall below the $6 price again. Thus, the support is instrumental in
determining whether Chainlink is currently a buy or sell. Featured
image from Shutterstock, chart from TradingView.com
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