Finance

Chainlink’s CCIP Protocol Goes Live on Arbitrum as LINK Price Sees +9% Weekly Gains

09/22/2023
Bitcoin Ethereum News
Chainlink's CCIP Protocol Goes Live on Arbitrum as LINK Price Sees +9% Weekly Gains

 Key takeaways

  • CCIP integrated with Arbitrum, marking another major milestone for Chainlink (LINK)
  • LINK sees positive price action on the weekly chart, climbing more than 9% in the wake of recent project developments
  • Algorithm predicts key breakout for LINK in the next 3 months, signalling a multi-year trend reversal

CCIP integrated with Arbitrum to enable secure interoperability with different blockchain networks

After first launching on Ethereum mainnet in July, Chainlink’s CCIP is now live on Arbitrum — a leading layer-2 solution that brings Ethereum to scale. CCIP’s integration with Arbitrum will unlock new possibilities for dApps that are built on the network, providing a plug-and-play solution for minting multichain assets.

CCIP, which stands for cross-chain interoperability protocol, uses Chainlink’s oracle network to send messages between isolated blockchain ecosystems. dApps within the Arbitrum network can now use Chainlink’s CCIP to reliably send and receive digital assets between different blockchain ecosystems by securely communicating with other distributed ledgers.

Typically, blockchains operate as closed-loop systems. The nodes that make up the distributed computer network are not designed to interact with nodes from other networks. Interoperability is, therefore, a key hurdle for the blockchain economy to overcome — unreliable bridging processes harm the user experience, but bridges are also the source of security problems.

Total value locked for all blockchains, via DeFi Llama

Chainlink’s CCIP is thought to provide a reliable and trustworthy method of sending digital assets across multiple blockchain networks. Chainlink has designed the solution to be easily accessible for developers, which helps to boost the accessibility of multichain asset minting and solve the problem of interoperability over time.

The inclusion of Arbitrum in CCIP will mean that Ethereum’s largest layer-2 by total value locked is now available for cross-chain messaging. Several Arbitrum-based dApps have  already begun to use CCIP, including BetSwirl, Galaxis, and Polychain Monsters. AJ Warner, Chief Strategy Officer at Offchain Labs, stated, “We are excited to see the benefits CCIP brings to those already building, or seeking to build on Arbitrum One.”

LINK price 9% up this week, algorithm predicts further upside

Chainlink (LINK) has been in the $5.50 to $9.60 range since May 2022 — since then, LINK has spent just one full week outside of the range when it fell below in June 2023. Demand for LINK has remained relatively stable within this range after the token lost 89% of its value from its 2021 all-time high to the monthly low in May 2022.

Continued project developments, including the launch of CCIP on Ethereum mainnet and now Arbitrum, have sparked fresh bullish sentiment around LINK. The token has climbed 9.66% in the past seven days, and the CoinCodex algorithm expects the upward momentum to continue over the coming weeks.

The 3-month price prediction includes a 278% move to the upside, targeting a $18.82 market price for LINK before a significant retrace takes place. This would be the first instance of LINK breaking above the $9.60 resistance since it fell below in May 2022, indicating that a long-term trend reversal could be a possibility for LINK in the near future.

3-Month price prediction for LINK, via CoinCodex

Bottom line: Chainlink’s CCIP delivers broader utility for developers in the Arbitrum ecosystem

Arbitrum’s layer-2 scalability solution delivers a high-speed, low-cost method of transacting in the Ethereum ecosystem. It has quickly become one of the most-used blockchains in Web3, and the addition of Chainlink’s CCIP to its tech stack could help it to attract a growing number of developers for Arbitrum-native dApps.

CCIP itself provides a novel solution to blockchain’s interoperability problem, making use of Chainlink’s battle-tested oracle solutions to provide a secure cross-chain messaging system. The LINK token may now be entering a pivotal phase in terms of its price action, with the CoinCodex algorithm anticipating a breakout from a multi-year resistance level in the near future.

All-time LINK price chart, via CoinCodex

Source: https://coincodex.com/article/32632/chainlinks-ccip-protocol-goes-live-on-arbitrum-as-link-price-sees-9-weekly-gains/