Will Chainlink’s new updates turn the spotlight back on LINK?

• Chainlink has announced the mainnet launch of its Cross-Chain Interoperability Protocol (CCIP).
• LINK’s price has posted double-digit gains in the last 24 hours.

Leading oracle network Chainlink [LINK] announced the early access mainnet launch of its Cross-Chain Interoperability Protocol (CCIP) on 17 July. This phase of the product’s launch was deployed on Avalanche [AVAX], Ethereum [ETH], Optimism [OP], and Polygon [MATIC] networks. It has also been adopted by leading decentralized finance (DeFi) projects Aave [AAVE] and Synthetix [SNX].

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According to CCIP documentation, the product was launched to address the connectivity challenges between blockchain networks. Per Chainlink, while the web3 ecosystem “has become multi-chain, with the rise of layer-1 blockchains and layer-2 scaling solutions,” these networks operate in isolation and face limitations in communicating with traditional systems and other blockchains.

Chainlink CCIP has been designed to bridge this gap and facilitate asset transfers and information exchange between multiple blockchains.

The aforementioned blog also noted that CCIP was built to primarily enable arbitrary messaging, token transfers, and programmable token transfers.

With arbitrary messaging, developers can send custom data to trigger actions on receiving smart contracts, while token transfers enable the movement of tokens across different blockchains. Programmable token transfers allow simultaneous token transfers and instructions within a single transaction, empowering users to control how tokens are utilized upon transfer.

TradFi now stands a chance

In addition to aiding cross-chain connections between crypto networks, Chainlink’s Chief Product Officer Kemal El Moujahid noted that the CCIP would serve as a blockchain abstraction layer for participants in the traditional finance vertical.

This will allow enterprises to interact with and integrate across multiple blockchain environments directly from their existing backend systems.

According to El Moujahid, Swift, in collaboration with over a dozen financial institutions and financial market infrastructure providers, has begun exploring the potential of CCIP to facilitate token transfers across different chains using the existing Swift messaging infrastructure.

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LINK excels in the past 24 hours

Following the mainnet launch of Chainlink’s CCIP, LINK’s price rallied by double digits in the last 24 hours. Exchanging hands at $7.08 at press time, the alt’s value grew by 14% during that period, data from CoinMarketCap showed.

Apart from the price rally, the increased interest in LINK in the past 24 hours could be gleaned from the jump in its social activity. Data from Santiment revealed a surge in LINK’s Social Dominance and Social Volume metrics following CCIP’s launch announcement.

Source: Santiment

On the daily chart, LINK accumulation climbed steadily. At press time, the Relative Strength Index (RSI) and Money Flow Index (MFI) accumulators were positioned above their respective venter lines at 62.09 and 68.66, signaling the growth in LINK purchases.

Per the alt’s Directional Movement Index (DMI) indicator, LINK buyers had control of the market. The positive directional index (green) at 30.28 rested above the negative directional index (red) at 13.77.

Source: LINK/USDT on TradingView