Research firm K33 claims that Chainlink’s LINK cryptocurrency is the “safest bet” for investors looking to gain exposure to the growing story in a recent analysis. According to analyst David Zimmerman, tokenization aims to put conventional assets like bonds and private equity on blockchains, cutting costs and friction.
Real-world asset (RWA) adoption is progressing across major banks and crypto platforms, but there are still barriers. However, Zimmerman noted on Wednesday that the enticing narrative might cause a “isolated RWA crypto bubble” before having a significant effect.
He emphasized Chainlink’s oracle network, which enables blockchains to communicate with outside data and systems. Additionally enabling it to profit from RWA hype are its numerous collaborations. According to Zimmerman, “Chainlink has established itself as a key piece of infrastructure to bring off-chain data onto blockchains.” Few projects are better positioned to benefit from the story, but it won’t likely be the largest gainer.
As proof of the expanding bank adoption, JPMorgan on Wednesday revealed its first actual live blockchain collateral settlement transaction with BlackRock and Barclays. Despite the hoopla, Zimmerman noted that RWA still has limited capabilities.
K33 urged long-term investors to hold off on making a purchase until LINK prices were about $5.70. Although it is presently trading at $7.30, LINK is up 32% in 2022 from its previous high of $53. Chainlink appears to be positioned to play a crucial part in potential RWA advances as big companies push toward adoption.
“LINK is the safest way to avoid being left behind when the real-world assets hype takes off,” Zimmerman said. Given its strong position, Chainlink is prepared to ride any escalating RWA wave as the crypto narrative gains momentum.
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