“If we wish to have exposure to the RWA narrative and avoid being sidelined when it takes off, LINK is the safest bet,” said K33 analyst David Zimmerman.
Tokenization is the term for placing traditional financial assets such as private equity, credit and bonds – often referred to as RWAs – on blockchains. The process is touted as a way to reduce cost and operational friction and improve accessibility and transparency.
There are still many hurdles before RWA’s can reach their full potential, said Zimmerman in his report. Still, the “narrative will be compelling” enough to potentially kickstart “an isolated RWA crypto bubble before there is widespread substantial impact from RWA on the real world.”
Zimmerman explained that Chainlink positioned itself as a key piece of infrastructure to connect blockchains with the outside world via its system of oracles and wide range of partnerships. “It will certainly not be the biggest gainer, but few projects are better positioned to benefit from the narrative,” he added.
Zimmerman advised investors to wait for lower prices to go long, pointing to the long-term support level at around $5.70 to take long positions.
LINK was recently changing hands at $7.30, significantly down from its all-time high of $53 but up 32% this year, CoinDesk data shows.
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