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Here's Why Chainlink Surged 11% Today and 50% Over the Past Week

Motley Fool - Wed Oct 25, 2023

It's easy for many investors who aren't all that connected to the world of crypto to focus in on only the large-cap tokens (you know, the ones that most would argue are the only projects that matter). However, over the past week, specific altcoins have really outperformed, with Chainlink (CRYPTO: LINK) seeing incredible price appreciation of roughly 50%.

Over the past 24 hours, as of 12:45 p.m. ET, Chainlink has soared 11%, leading this token to soar all the way up the crypto rankings to take the 12th spot, above some other coveted names in the space. So, what gives? After all, Chainlink's moves have rivaled some of the crypto world's most speculative altcoins over the past week.

While most investor attention is focused on Bitcoin and Ethereum, let's dive into why Chainlink may be one overlooked project worth diving into right now.

Industry validation leading to price appreciation

One of the more intriguing reports to highlight real-world utility generated by blockchain technology outlines a unique partnership with European telecom giant Vodafone and Chainlink, among others. This proof of concept reportedly "enabled devices to act autonomously and produce accurate information to support trade document exchange."

In plain English, one of the actual use cases highlighted in this report was a fire on a cargo vessel. Once a fire was identified, a vessel could "autonomously relay data to smart contracts via DAB's platform and CCIP, potentially triggering a marine cargo insurance process."

If this sounds good to the layperson, it certainly has stoked interest from crypto investors. For those interested in how this news affects Chainlink, Chainlink Labs (the group behind the project) was a partner on this proof of concept, with its cross-chain interoperability protocol (CCIP) used to provide security and interoperability across various blockchains.

Can Chainlink continue to climb from here?

Chainlink has some of the most impressive momentum among the altcoins on my watch list. This interoperability-focused oracle network is one I've been generally bullish on in the past relative to other projects for precisely the reason that Chainlink enables things actually to happen using blockchain technology. Accordingly, for those with the view that crypto only matters if it can actually do something, Chainlink is one of the projects to keep an eye on.

Simply put, this partnership and the details released today only further this thesis. It's my view that Chainlink is a token to consider owning for those who believe there's something to this whole blockchain technology thing.

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Chris MacDonald has positions in Ethereum. The Motley Fool has positions in and recommends Bitcoin, Chainlink, and Ethereum. The Motley Fool recommends Vodafone Group Public. The Motley Fool has a disclosure policy.

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