Chainlink’s (LINK) token has experienced a remarkable 26% surge between Nov. 2 and Nov. 8, approaching $14, a level not seen since April 2022. This solidified its position as the 10th largest cryptocurrency (excluding stablecoins) by market capitalization.
While the price action is a welcome sight for traders, is Chainlink’s current valuation of $8.1 billion justified? Cointelegraph research shows that the impressive price surge is driven by expectations of real-world asset (RWA) tokenization and initial signs of institutional adoption. However, let’s delve deeper to assess the sustainability of the current rally.
Spot Bitcoin ETF expectations and real world asset tokenization boost sentiment
Bloomberg’s ETF strategists, James Seyffart and Eric Balhunas, issued a research note on Nov. 8, which has boosted the confidence of cryptocurrency traders.
New Research note from me today. We still believe 90% chance by Jan 10 for spot #Bitcoin ETF approvals. But if it comes earlier we are entering a window where a wave of approval orders for all the current applicants *COULD* occur pic.twitter.com/u6dBva1ytD
— James Seyffart (@JSeyff) November 8, 2023
In their note, they explain that the window for approving a Bitcoin spot exchange-traded fund is set to open on Nov. 9, as the U.S. Securities and Exchange Commission concludes its latest round of postponements.
Seyffart maintains a 90% likelihood of approval, but cautions that the regulator’s final decision may be delayed until mid-January.
Altcoins have also seen notable price increases in the past seven days, with Trust Wallet Token (TWT) surging by 41%, Immutable X (IMX) by 29%, and NEO by 28%. LINK’s appreciation is indicative of the positive sentiment towards altcoins, particularly following Bitcoin’s (BTC) apparent stagnation around the $35,500 mark.
Within the Chainlink’s ecosystem several positive developments have contributed to the LINK’s recent performance.
On Nov. 7, Vodafone, a major European and North Africa-based telecom company, officially launched its partnership with the Japanese financial conglomerate Sumitomo Corporation, utilizing Chainlink oracles to facilitate transactions and offer diverse applications, including electric vehicle charging stations and toll roads.
This digital platform, known as Pairpoint, enables vehicles and devices to autonomously interact and trade in the emerging Internet of Things (IoT) landscape. Pairpoint leverages Vodafone’s existing digital assets platform and has…