Altcoin Outlook: Chainlink, 3 Others in Focus

Chainlink ($LINK) and three other altcoins are poised for potential gains, fueled by encouraging on-chain data, when Bitcoin’s ($BTC) price is trading within a narrow range of $26,000 to $27,000.

According to the well-known on-chain analytics firm Santiment, the decentralized oracle network Chainlink is experiencing a growth spurt, with the number of distinct address interactions recently reaching a two-month high near 4,000.

The analyst firm observed that Chainlink’s price may continue to rise, notably if the broader market disregards its trajectory.

The native token of the decentralized Oracle network is trading at $7.3 at the time of writing, up more than 9% over the past week and 23% over the past 30 days.

Notably, the decentralized Oracle network introduced its Cross-Chain Interoperability Protocol (CCIP) for early access users last month to strengthen cross-chain applications and services.

The protocol is now functional for these users on the Avalanche, Ethereum, Optimism, and Polygon blockchains after at least 25 participants transitioning to the mainnet have tested it.

The primary decentralized financial protocol Aave and the decentralized liquidity platform Synthetix are among these participants.

According to the Chainlink team, the protocol will soon be adopted by other prominent decentralized financial protocols.

The interoperability protocol has been essential to Chainlink’s partnership with SWIFT, the predominant international payment and messaging system institutions use.

However, Chainlink is not the only cryptocurrency that Santiment is interested in.

In addition, the company is keeping an eye on Loom Network ($LOOM), Frontier ($FRONT)—a decentralized finance aggregation stratum—and the layer-2 blockchain ImmutableX ($IMX).

According to the company, as adoption for these altcoins increases, the three altcoins have outperformed, as reported by Daily Hodl.

If these networks continue to expand and new addresses continue to be created, they may be able to sustain their rallies into the future and continue to outperform the market.