Key Insights:
- Chainlink has partnered with 21X, an asset manager to launch RWA-based money market funds in Europe.
- Entry into the regulated RWA space in the EU could help Chainlink diversify and increase its revenue.
- Blockchain oracles in Chainlink are paid in LINK, and new adoption will increase demand.
- LINK enjoys being the only major player in the oracle space with others like Supra Oracles and QED being much smaller.
- LINK has formed super bullish charts with a complete rounding bottom pattern and two breakouts at $19.9 and $23.
- Near-term price targets are $33 (in Dec 2024), $53 by March 2025, and $100 by the end of 2025.
Chainlink Partners with 21X to Launch RWA-Based Money Market Funds in Europe
Chainlink, the leading blockchain oracle network, has announced a partnership with 21X, a European asset manager, to launch money market funds based on real-world assets (RWA). This marks a strategic entry into the regulated RWA space in the European Union, presenting significant opportunities for revenue diversification and adoption within a compliant framework.
Chainlink’s foray into regulated RWA-based products in Europe highlights the transformative potential of blockchain technology in traditional finance and underscores the strategic importance of reliable oracles in powering this shift. As institutional adoption accelerates, Chainlink stands to benefit significantly, both in terms of token demand and ecosystem expansion.
LINK’s Dominance in the Oracle Sector
Chainlink enjoys a near-monopoly in the blockchain oracle space, with smaller competitors such as Supra Oracles and QED yet to gain significant traction. Its robust ecosystem and first-mover advantage continue to solidify its position as the go-to solution for both DeFi and institutional use cases.
Bullish Technical Indicators for LINK
LINK’s technical charts signal strong bullish momentum. It has recently completed a rounding bottom pattern, followed by two significant breakout levels at $19.9 and $23. Analysts predict near-term price targets of $33 by December 2024, $53 by March 2025, and $100 by the end of 2025. These targets reflect growing confidence in LINK’s utility and adoption, particularly as Chainlink forges partnerships in high-value markets like RWA tokenization.
On top of this, RSI in LINK has also crossed the level of 70, showing a breakout. This could further strengthen LINK’s price and help it extend its rally to $33 in the next week or two.
The Role of Asset Tokenization in RWAs
Asset tokenization is revolutionizing traditional finance by converting real-world assets, such as equities, bonds, and real estate, into digital tokens on the blockchain.
These tokens are easier to trade, fractionally own, and settle, enabling increased liquidity and transparency in financial markets. Currently, tokenized money market funds are the largest application of RWA technology in the crypto markets.
By tapping into the RWA sector, Chainlink positions itself to leverage the growing interest from institutional investors seeking secure and efficient on-chain solutions.
How Blockchain Oracles Power RWA Tokenization?
A critical element in asset tokenization is the reliable integration of off-chain data with blockchain systems. Chainlink’s decentralized Oracle network excels in providing this bridge, ensuring accurate price feeds, compliance data, and real-time reporting for tokenized assets. Oracles like Chainlink are essential for the operation of RWA-based financial products, as they validate external data while maintaining trustlessness. Payments to Chainlink oracles are made in LINK, Chainlink’s native token, and increased adoption of RWA products will directly drive demand for LINK.
