• 15 June, 2024
News

Upcoming Chainlink Staking Turns Analysts Bullish on LINK

With the launch of Chainlink staking v0.1 on the mainnet scheduled for December 6th, the price of LINK has been performing well recently. The staking function is a component of “Chainlink Economics 2.0,” which aims to provide LINK holders with more ways to earn rewards for “helping to increase the crypto economic security” of Chainlink’s oracle services.

Technical’s in LINK’s favor

In the past, Chainlink users who wanted to earn LINK tokens had to create their own nodes. The staking functionality essentially gives customers more ways to earn LINK rewards, which may theoretically increase demand for the currency.

Industry analysts have predicted a rise in interest for Chainlink, LINK’s parent platform, in its capacity as an oracle service provider. The rising price of LINK over the past several days can be attributed partly to these speculations surrounding the project. Notably, the price of Chainlink jumped 35.50% in eight days, passing $7.50 on November 29 after having bottomed out locally at about $5.50.

At the time of writing, LINK is trading at $7.44, down 2.1% over the past 24 hours, however, according to popular crypto analyst Michael Van De Poppe, that could soon change. According to the analyst, LINK is currently undergoing an accumulation phase, and the token is looking to break out of this zone on the upside.

Poppe adds that if LINK breaks past the resistance at $9.25, the price will continue moving upwards toward the $12.50 range to as high as $25. However, the analyst did note that ultimately it all depends on Bitcoin, as the markets usually tend to follow the flagship cryptocurrency.

Additionally, the demise of FTX may increase demand for LINK, as stated by David Gokhshtein, founder of blockchain-focused media business Gokhshtein Media. The analyst pointed out that following the FTX debacle, traders have been looking for more transparency regarding exchange reserves, which could increase demand for oracle services like Chainlink and lead to a price increase for LINK.

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