If you’ve been on Crypto Twitter over the past few hours, you likely would’ve noticed incessant mentions of Chainlink (LINK).
This is for good reason. Over the past few days, the community-favorite altcoin has been exploding in value, surging from $1.60 at the turn of the month to $2.40, peaking at $2.50 earlier on Monday. LINK is now the 15th largest cryptocurrency by market capitalization — a seeming record for the project.
So, why is this taking place? And more importantly, can this momentum be sustained?
Chainlink Booms After Intel Mention
While Bitcoin has been floundering over the past week, Chainlink has surged, having embarked on a 50% seven-day rally as aforementioned. Much of this hype seems to be attributed to the growing underlying demand for LINK and positive developments for Chainlink.
Case in point, on Monday, the project made a massive announcement: Chainlink, alongside massive partners in computing giant Intel, Hyperledger, and others, have presented a new Trusted Computation Framework that leverages public blockchain and Chainlink oracles to “drive enterprise blockchain adoption.”
Along with @Intel, @Hyperledger, @EntEthAlliance & others, we’re excited to present a new Trusted Computation Framework that leverages public blockchains, Chainlink oracles & trusted computing to drive enterprise blockchain adoption. https://t.co/BSGGZJJfwu
— Chainlink – Official Channel (@chainlink) October 7, 2019
According to an Intel blog post on the solution, which has been dubbed “Hyperledger Avalon,” it will become that much easier for “blockchain developers to deliver the next wave of confidential computing applications”, as it will allow them to “access off-chain transaction resources and deliver confidential loan systems, trusted tokens, attested oracles, and more.”
Other recent fundamental developments include the release of papers for so-called “Mixicles”, which are slated to be privacy-centric oracles for Ethereum-based decentralized finance (DeFi). While still in their early stages, this technological solution can provide a large boost to the value proposition of Chainlink.
On-chain metrics support LINK’s recent rally. Industry data provider Glassnode, advised by crypto trader Josh Rager, recently published the below data, showing that demand for Chainlink oracles — the project’s flagship technological solution — has begun to grow at a steady pace. Glassnode notes that 80% of all daily LINK transfers are for an ETH/USD reference data contract, accentuating that oracles are actually being used.
#Chainlink oracle usage is on the rise.
Since May, an ETH/USD reference data contract has sent 330,000+ transactions of 0.333 $LINK to various oracle addresses.
At around 5k a day, this represents over 80% of daily transfers.https://t.co/bI55ycrgar pic.twitter.com/qiDdbxOa5n
— glassnode (@glassnode) October 7, 2019
Title Image Courtesy of Marco Verch Via Flickr