DeFi
Chainlink’s Sergey Nazarov Predicts TradFi and DeFi Integration
- Chainlink creator Sergey Nazarov highlighted that the Chainlink Digital Assets Sandbox (DAS) is an essential tool for financial institutions to develop and launch innovative products like bond tokenization.
- LINK supply on exchanges decreased from 23.0% to 21.4% over the past month, a trend similar to a previous period that led to a 123% increase in LINK’s price.
Sergey Nazarov, the creator of the Chainlink ecosystem, said that they are working to connect the traditional finance (tradfi) ecosystem with decentralized finance (DeFi) using its native cryptocurrency LINK. In his recent post on social media platform X, Nazarov said that TradFi is preparing to take the next big step in the adoption of digital assets as well as smart contracts. He wrote:
Accelerating the adoption of digital assets/smart contracts in DeFi is just the beginning. Once the world’s largest asset managers and banks are on-chain, the next step will be to connect them to the DeFi protocols already powered by Chainlink. Once there is a single standard for transactions to work smoothly across multiple chains and across both DeFi and DeFi worlds, we will enter a global Internet of Contracts, the true promise of what our industry has been working towards.
Nazarov highlights the recent launch of the Chainlink Digital Assets Sandbox (DAS), powered by Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and built by Chainlink Labs, as reported by Crypto News Flash.
The Chainlink DAS provides a secure and efficient way to explore and create cutting-edge digital asset solutions. The DAS will enable financial institutions to quickly implement and launch innovative products such as bond tokenization. This process transforms traditional bonds into tokens, improving time-to-market and overall efficiency. In addition to the DAS, Nazarov also bet on using the Chainlink blockchain for the tokenization of real-world assets, reported CNF.
Chainlink (LINK) Price Evolution
Along with the general market correction, Chainlink (LINK) price has also been facing a slight selling pressure. At press time, LINK price is trading down 1.5% at $14.06 with a market cap of $8.5 billion and daily trading volume down 36% at $275 million.
However, the downward trend in LINK price will not be sustained for long as the supply of Chainlink on the exchange has been decreasing since last month. On-chain data provider SantimentSantiment observed a notable decrease in the supply of Chainlink (LINK) on exchanges.
Over the past 30 days, the supply has decreased from 23.0% to 21.4%. Santiment pointed out that a similar drop in LINK’s supply occurred from September 15 to October 14, during which time the coin ranked 15th by market cap surged by 123% over the next four weeks.
Let’s take a look at the technical chart pattern to determine the LINK price action going forward. Chainlink price is facing potential downward pressure without strong market support and could soon approach the $14 support level. If the selling intensifies, LINK could fall further to the $13 support mark, with a significant decline that could take it back to $12.
Conversely, a break above the $15 resistance could signal a bullish turn, potentially pushing LINK towards the crucial $20 resistance level. If this uptrend gains momentum, the coin’s value could surge to $30 in an anticipated rally.
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