On December 3rd, after Grayscale successfully launched the #LINK spot ETF, #Chainlink also officially joined the U.S. spot ETF camp. The first-day trading volume was $13 million, although it was significantly lower than Solana ($56 million) and XRP ($33 million), the ETF attracted $42 million in capital inflow during its period, and Bloomberg ETF analyst Eric Balchunas exclaimed: "Another rapidly popular ETF!"💸
Another analyst, James Seyffart, also stated that the first-day trading volume was "strong and impressive," indicating that even "long-tail assets" can find their stage in the ETF world. Grayscale CEO Peter Mintzberg also believes this means the market demand for LINK is expanding.
LINK market response: considerable short-term rise 📈
After the launch of the LINK ETF, the open contracts rose from $194 million to nearly $240 million, indicating a surge in speculative enthusiasm in the futures market.
In terms of price, LINK surged directly from around $12 to $15, with a weekly increase of over 20%. Although it later fell back to $14.4, the short-term market sentiment remains optimistic.
From a technical perspective, the first hurdles for the bulls are at $15 and $16. If they can hold these resistance levels, the chances of hitting $20 will greatly increase, especially with continuous inflow of ETF funds, making this target not a fantasy.
LINK's 'true product-market fit' 🛠️
Chainlink has steadily built its reputation over the years, having become a top decentralized oracle since its launch in 2019, providing real-world data for numerous blockchain projects. The recently launched Cross-Chain Interoperability Protocol (CCIP) allows it to support data flow between more chains, and its partners have expanded from the crypto circle to institutions like SWIFT.
Many friends in the crypto community lament that LINK truly reflects the 'product-market fit', as it not only has technical barriers but also real-world applications. However, near $16 in the short term, 53 million LINK have been bought at high prices. If holders choose to take profits, there may be some pressure here.
Summary 📌
The impressive performance of the LINK ETF in the US spot market is clearly a signal of institutional demand for altcoins. Whether it can continue to rise in the short term depends on whether it can hold the $16 level. If it breaks through, the bulls may aim for the $20 mark.
Investors can pay attention to capital inflows and price behavior; the support of ETFs may just be the catalyst for LINK to return to a bull market rhythm.
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