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Chainlink grows 15% when the Chinese blockchain network is launched

July 8, 2020

Chainlink (LINK) hit a record high of $ 5.60 and rose 15% that day. This is amidst the news that China’s Blockchain Service Network (BSN) was launched last weekend.

LINK price in the last 12 months

The price of the links in the last 12 months. Source: Nomics.

Chainlink grows 15% when the Chinese blockchain network is launchedChainlink grows 15% when the Chinese blockchain network is launched

BSN recently integrated Chainlink’s price oracle into its ecosystem. The founding members of the BSN consortium were local tech Leviathans like the China Mobile Communication Corporation and China Union Pay. The stated goal is to advance blockchain technology in China.

135 nodes are started in China

A source familiar with the BSN launch told Cointelegraph that the 135 node nodes in the Zhejiang District had been activated:

“Many of the public BSN city nodes are already active, but this is very different from the news about the public blockchains, which are integrated into these nodes and which I believe will only be activated at the end of the month.”

The source doesn’t know if Chainlink’s oracles are currently alive. In any case, this version should have enabled the Oracle company to massively publicize the local media.

Michael Anderson, co-founder of Framework Ventures, Anyone who made a bullish forecast about LINK in April also believes that Chainlink integration with BSN was a factor in the increase:

“Chainlink’s short-term price hike is likely due to increased use of the DeFi project. The size of the entire DeFi market has grown rapidly in the past month, and a significant portion of it. The industry is now using Chainlink to create intelligent on-chain -Connect contracts with off-chain data sources such as raw materials and crypto price data. I would also say that the Chinese government’s decision to integrate Chainlink oracles into their national blockchain service also plays a role. We believe that the value of Chainlink, which plays a role in the recent cycle of the hype term, will continue to increase, especially when staking is introduced. “

Growth budget of $ 55 million

Chainlink is expected to spend $ 55 million this year on ecosystem growth. Thanks to aggressive spending, the company was able to integrate with key players in the industry such as Tezos (XTZ) and Huobi. A few months ago, Chainlink also introduced verifiable chain randomness into the Ethereum (ETH) ecosystem..

At this point we can only describe a few factors You may have been affected by LINK’s recent price hike, but we have no way to verify these assumptions.