“Bitcoin’s Competitor Sees 20% Surge in 2024 – Could it Be the Next Big Thing?”

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The crypto market has been mostly flat or down this year, despite the excitement surrounding Bitcoin (CRYPTO: BTC) and the launch of new spot Bitcoin ETFs. Out of the top 20 cryptocurrencies by market cap, only one has seen a gain of more than 20% in 2021. Surprisingly, that cryptocurrency is Chainlink (CRYPTO: LINK), which is now up 21% for the year and has become the #10 cryptocurrency by market cap, surpassing Dogecoin (CRYPTO: DOGE).

Recently, Chainlink has been performing well and is close to reaching a two-year high with a price of just under $20 per token. This raises the question: is this undervalued cryptocurrency worth adding to your portfolio?

One possible catalyst for Chainlink’s recent success is the trend of real-world asset tokenization, or RWA tokenization. This involves transforming traditional assets like stocks and bonds into digital assets that are stored on the blockchain. This is a growing trend on Wall Street and has been championed by influential figures like BlackRock (NYSE: BLK) CEO Larry Fink. Even Coinbase Global (NASDAQ: COIN) is exploring the possibility of adding tokenized assets to its crypto trading platform. According to experts, this market could be worth $16 trillion by 2030.

Chainlink is well-positioned to benefit from this trend as it is a blockchain oracle network that supplies real-world data to smart contracts. As more assets become tokenized, the demand for real-world data will increase, making Chainlink a valuable asset.

However, it’s worth noting that Chainlink has been at the center of a similar trend before. During the last crypto bull market, it was a key player in the decentralized finance (DeFi) trend. Its price soared from $5 to over $50 in just over a year, but eventually crashed below $10. While it has seen a resurgence since October, investors should be cautious about expecting a repeat of its previous performance.

Considering its volatility, Chainlink may not be suitable as a core holding in a portfolio. However, it could serve as a diversification tool for investors looking to add some risk to their portfolio. It has shown the ability to move independently from the rest of the crypto market, which could make it a valuable asset in the long run.

In conclusion, Chainlink may be too risky for most investors at the moment, but it is certainly worth keeping an eye on. If the asset tokenization trend continues to gain momentum, Chainlink could see significant growth in the future. As always, it’s important to approach any investment with caution and maintain a long-term outlook.

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