Chainlink (LINK) reaches new heights: what's behind its rise?

Chainlink (LINK) reaches new heights: what's behind its rise?

On Friday during Asian trading, Chainlink's native token, LINK, saw a significant surge and approached the $31 mark, its highest price since early 2021. This remarkable growth was not only fueled by increased investor interest, but also by strategic investments by World Liberty Financial, which significantly expanded its holdings in LINK.

Global interests and the increase in open interest

The price of LINK has risen at a time when open interest in futures for the token has reached $860 million, indicating growing investor enthusiasm and confidence in the cryptocurrency. LINK's rally came after the news that World Liberty Financial, a cryptocurrency platform backed by the Trump family, purchased LINK for $1 million. The move boosted its total LINK holdings to $2 million for the second day in a row.

In addition to LINK, the company also invested in $246,000 worth of Aave tokens, increasing its total holdings of these tokens to $1.2 million. Currently, LINK has become the fourth largest asset in World Liberty Financial's portfolio, just behind Ether (ETH), Bitcoin (BTC) and Tether (USDT).

Why invest in LINK?

World Liberty Financial is using Chainlink's oracle services to develop its platform focused on cryptocurrency lending and stablecoin transactions. Chainlink provides the platform with key real-time price data and infrastructure for interoperability across multiple blockchains. These services are essential for decentralized financial platforms (DeFi), which have become very popular in recent years.

LINK tokens play a vital role in rewarding Chainlink node operators, making their usefulness directly linked to platform adoption.

Positive market reaction

The market has reacted very positively to World Liberty Financial's investment. LINK's price has risen 22% in the last week and is up more than 130% since the company began using Chainlink's services. As LINK has regained its 2021 highs and is increasingly used in the DeFi ecosystem, it looks like this token will maintain sustained momentum in the future.

*This is not investment advice.

Coingarage team