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Chainlink, a leading web3 oracle network and cross-chain transfer protocol, is gaining traction among traditional financial institutions (tradfi) for its role in bringing assets on-chain.

Sygnum and Chainlink Collaboration

On July 3, Sygnum, a digital asset bank, announced its collaboration with Chainlink and Fidelity International, an investment management firm and Bitcoin ETF issuer. This partnership aims to bring Net Asset Value (NAV) data — the calculation of an investment fund’s value — on-chain.

Powering Fidelity’s Institutional Liquidity Fund

The NAV data will support Sygnum’s tokenized offering of Fidelity International’s Institutional Liquidity Fund. This fund invests in AAA-rated assets, boasting $6.9 billion in assets. In March, Matter Labs, the company behind ZKsync, allocated $50 million of its treasury reserves to the fund via Sygnum.

Bridging Traditional Finance and Blockchain

Fatmire Bekiri, head of tokenization at Sygnum, emphasized the importance of setting standards to foster collaboration across blockchain companies, regulated financial institutions, and asset managers. “NAV data is a critical building block that underpins the traditional fund industry today,” Chainlink stated. The company developed a chain-agnostic method for broadcasting NAV data, allowing it to propagate across any blockchain.

Growing Adoption Among Tradfi Institutions

The price of Chainlink’s LINK token is down 2.4% in the past 24 hours, according to CoinGecko. Despite this, the adoption of Chainlink among tradfi institutions continues to grow. In May, the Depository Trust & Clearing Corporation (DTCC) published findings from a pilot distributing NAV data for mutual funds across blockchains. This pilot was conducted in partnership with Chainlink and 10 major financial institutions.

Chainlink’s Role in Tokenization Pilots

Chainlink’s cross-chain interoperability protocol (CCIP) plays a key role in tokenization pilots launched by major financial institutions, including BNY Mellon, Citi, BNP Paribas, ANZ Bank, Lloyds Banking Group, and SIX Digital Exchange.

The Future of Fund Tokenization

“Fund tokenization is likely the largest digital asset trend happening today,” said Sergey Nazarov, Co-founder of Chainlink. He believes that tokenized funds offer global reach and efficiency benefits far greater than traditional methods. Over time, this approach is expected to transform the asset management industry.

Rapid Growth in Tokenized Assets

According to Rwa.xyz, the value of tokenized U.S. treasuries, bonds, and cash equivalents has surged in 2024. The sector currently boasts a $1.77 billion market cap, reflecting more than 120% growth since the start of the year.

Conclusion: Chainlink’s Impact on the Financial Industry

Chainlink’s role in providing NAV data and enabling cross-chain interoperability is driving the tokenization trend among tradfi institutions. As more mainstream institutions explore tokenization, Chainlink’s technology is set to play a pivotal role in the future of asset management.

Bitcoin declines below $61K, triggering a ripple effect across the cryptocurrency market. This downturn also influenced altcoins, leading to significant selling activity among whales.

Corporate Whales Switch to Sales Mode

Prominent whales have entered a selling mode. According to on-chain analyst The Data Nerd, Galaxy Digital deposited $14.72 million worth of Avalanche (AVAX) to Binance. Specifically, a Galaxy Digital address moved 520,000 AVAX, valued at $14.72 million, to the exchange.

Institutional Investors and Market Makers

Institutional investors’ selling activity continues with market maker GSR Markets also participating. GSR Markets deposited 300,000 Chainlink (LINK) to Binance. As reported by The Data Nerd, an address suspected to belong to GSR Markets, starting with 0x4E2, received 300,000 LINK, worth $4.37 million, from a multi-signature wallet. This address then deposited all of these LINK to Binance.

Whales Selling at a Loss

Large whales are selling significant amounts of altcoins, often at a loss. According to Lookonchain, whales sold altcoins including LDO, AAVE, UNI, and FXS. These whale wallets collectively sold $13.42 million worth of altcoins to Binance.

Conclusion

As Bitcoin declines below $61K, the market witnesses a substantial sell-off among whales, affecting altcoins and overall market sentiment. With major players like Galaxy Digital and GSR Markets leading the selling trend, the cryptocurrency landscape remains volatile.

Toncoin (TON) is currently just 2.5% away from reaching its all-time high (ATH) after surpassing Dogecoin to claim the 8th position in market capitalization. This significant achievement raises the question: Will Toncoin surge to a new ATH?

Surge Despite Market Conditions

Toncoin has experienced remarkable gains this year, starting at $2.3 and reaching $8.03, only 2.58% shy of its ATH of $8.24 set two weeks ago. This surge is notable as it comes during a period of neutral investor sentiment, as indicated by the Fear and Greed index.

Overtaking Dogecoin

Previously ranked 9th on Coinmarketcap, Toncoin has now overtaken Dogecoin, which has struggled at $0.1238 with a market cap of $17.94 billion. Toncoin’s market cap has surged to $19.75 billion, largely due to a 5% gain in the last 24 hours, propelling it past Dogecoin.

Reasons Behind Toncoin’s Rise

Several factors have contributed to Toncoin’s rise. The decline in Bitcoin dominance from 54.4% to 53.4% has allowed altcoins, including Toncoin, to gain traction. Additionally, the Kazakhstan Exchanges began trading Toncoin following approval from the Astana Financial Services Authority (AFSA). This approval is linked to recent interactions between Telegram co-founder Pavel Durov and Kazakhstan’s Minister of Digital Development and Innovation, Ahaslan Madiev.

Moreover, venture capital firm Pantera Capital has increased its investment in Toncoin, further boosting demand. The ongoing investment round for Toncoin requires a minimum stake of $250,000 per participant.

Will Toncoin Hit a New ATH?

Technical indicators and moving averages suggest a strong buying zone for Toncoin. The daily chart’s moving averages (5, 10, 20, 50, 100, 200) show buyer dominance. Technical indicators such as MACD, STOCH(9,6), Bull/Bear Power(13), and Highs/Lows(14) support this trend. However, STOCHRSI(14) and Williams %R indicate overbuying, which could limit further gains.

The Relative Strength Index (RSI) at 63.285 signals buyer dominance but is close to the overbuying zone, potentially leading to a trend reversal. If the price crosses the support at 7.9772, a decline may follow. For now, the bullish trend favors Toncoin, and it might achieve a new ATH.