LINK, the decentralized blockchain oracle solution, outperformed most cryptocurrencies in September with a 25% gain. However, a recent correction has raised concerns about the sustainability of its bullish momentum. The project currently ranks 15th in terms of market capitalization, excluding stablecoins. In October, LINK faced a 10% correction, and breaking the $7.20 support level could lead to further downward pressure. Despite reaching its highest point in over 10 weeks in September, Chainlink’s price still remains 86% below its all-time high in May 2021. The LINK bull run began after SWIFT released a report suggesting that linking existing systems to blockchains is more feasible than unifying different central bank digital currencies. Chainlink’s successful testing of their Australian dollar stablecoin and the mainnet launch of their Cross-Chain Interoperability Protocol (CCIP) also contributed to the surge in value. However, concerns were raised when Chainlink quietly reduced the number of approvals required on its multi-signature wallet, leading to questions about security. Additionally, Chainlink’s protocol revenue generated by its price feeds has been declining for the past four months. This, combined with the decline in Ethereum’s total value locked, raises doubts about the sustainability of Chainlink’s revenue model. Investors are now questioning whether LINK can maintain its support level and market capitalization.
