Chainlink (LINK) has been on a roll this past week! It surged 42%, becoming the top gainer among the top 50 cryptocurrencies, with a daily increase of over 10%. On the news front, Chainlink Reserve has formed a significant partnership with the Intercontinental Exchange (ICE) to provide data services for traditional financial institutions.
First, let’s clarify, the Intercontinental Exchange is not just any company; the New York Stock Exchange is under its umbrella. The fact that such a traditional financial giant chooses to partner with Chainlink is of great significance. This marks the official entry of decentralized oracles into the core area of traditional finance.
What exactly does Chainlink do? Simply put, it is the 'data mover' of the blockchain world. DeFi protocols need price data, NFT games require random numbers; how can this external data be input into the blockchain securely and reliably? Chainlink is the solution to this problem.
Currently, Chainlink has provided services for hundreds of DeFi protocols, protecting assets valued at over hundreds of billions of dollars. This large-scale practical application proves the reliability of the technology and provides solid value support for the LINK token.
From an investment logic standpoint, Chainlink has a deep moat. In the oracle field, it not only has a first-mover advantage but has also established a strong network effect. The more projects that use Chainlink, the higher the network value, creating a typical winner-takes-all pattern.
From a technical perspective, LINK broke through a long-term resistance level, and the trading volume significantly expanded, confirming the validity of the breakout. According to wave theory, it is very likely that we are currently in the early stages of a primary upward wave, characterized by large gains and a long duration.