Chainlink Rallies as TradFi Giants Integrate LINK and Supply Shock Builds on Exchanges

Chainlink has stood out in the crypto market with its recent resilience, as major institutions adopt its technology and traders expect reduced supply on exchanges. The token has continued its upward movement while most cryptocurrencies face pressure, leading to renewed focus on its potential role in traditional and decentralized finance.

Traders Eye Supply Shock as Institutions Turn to Chainlink

Rekt Fencer, founder of X DAO, stated that “$LINK IS GOING TO $300 THIS CYCLE,” pointing to integrations with SWIFT, Visa, and Mastercard. He argued that Chainlink is becoming a key bridge to decentralized finance and real-world asset tokenization, while also warning that supply on exchanges is drying up.

Source: https://x.com/rektfencer/status/1957462190383898914X

This view reflects a growing narrative that Chainlink could face a supply shock, as more tokens move into long-term holdings or institutional use. Analysts believe that such a trend may support price stability and potential growth, especially as adoption expands beyond the crypto-native ecosystem.

Technical Outlook and Market Performance

EmperorBTC, a crypto market analyst, noted that Chainlink had been “the strongest coin from all the majors” in recent sessions. He highlighted a 13% daily gain followed by continued strength, suggesting the next resistance zone lies around the $29 mark. However, he also said that if Bitcoin weakens, Chainlink may retest the $20 level before attempting another rally.

Despite market volatility, Chainlink’s performance has been reinforced by its ability to maintain price levels while the broader market declined. Data from CoinGecko showed the token gaining 1.5% on a day when the total crypto market cap fell 3.5%. Technical indicators, including the relative strength index and MACD, also suggest strong buying activity in recent days.

Partnerships, Whale Activity, and Real-World Asset Expansion

Recent reports have drawn attention to Chainlink’s strategic partnerships and its expanding role in tokenization. Last week, the network announced a deal with Intercontinental Exchange (ICE), adding to its existing work with global financial players. Industry estimates suggest that demand for tokenized real-world assets could reach $30.1 trillion by 2034, with Chainlink seeking to provide data and infrastructure support.

On-chain data also shows increasing whale activity. Santiment reported that large holders accumulated more than 2M LINK coins within a week, reducing the available supply on exchanges. This aligns with growing daily trading volumes, which reached more than $3 billion, the highest since December. 

Chainlink now secures over $92B in value across 60 blockchains through more than 2,000 oracles, supporting over 450 applications. By comparison, the XRP Ledger hosts a much smaller DeFi ecosystem, securing about $100 million. With rising institutional engagement and continued ecosystem growth, Chainlink’s position as a key infrastructure provider appears increasingly established.

Source: https://www.livebitcoinnews.com/chainlink-rallies-as-tradfi-giants-integrate-link-and-supply-shock-builds-on-exchanges/