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Chainlink Plunges After Morning Surge on Coinbase News
16 Dec
Summary
- Chainlink surged 3.3% earlier today before reversing losses.
- Coinbase will use Chainlink's CCIP for a $7 billion crypto bridge.
- Bank of Japan rate hike caused broader market concerns.
Chainlink experienced a sharp reversal today, with an early morning surge of 3.3% giving way to significant losses by the afternoon. This volatility followed a positive announcement that Coinbase intends to leverage Chainlink's Cross-Chain Interoperability Protocol (CCIP).
The integration with Coinbase is set to support a substantial $7 billion crypto bridge, designed to enable the listing of wrapped and staked assets, thereby allowing investors to earn yield on tokens previously lacking this functionality. This move highlights the growing importance of interoperability within the cryptocurrency sector.
Despite the promising partnership, broader macroeconomic anxieties significantly impacted Chainlink's price action. Concerns arose following the Bank of Japan's decision to hike its benchmark interest rate, sparking fears of a Yen carry trade unwind. This potential capital reduction in the crypto sector could decrease transaction volumes and, consequently, revenue for Chainlink and similar platforms.
