Chainlink – the decentralized blockchain oracle network built on Ethereum – was trading up by 11% on Wednesday afternoon, changing hands at around $8.60. 

Although the capitalisation of the wider cryptocurrency market only rose by 2.2% in the past 24 hours, Chainlink (LINK) enjoyed its breakout momentum at around 15:30 BST (UTC +1) thanks to a newly-announced network update. 

Chainlink Economics 2.0

On Tuesday, the Chainlink network published a roadmap that outlined a plan to introduce staking. This process gives LINK holders the opportunity to support the Chainlink blockchain and receive passive income in return.

Hailing what it referred to as ​​Chainlink Economics 2.0, the announcement stated: “The overarching mission of Chainlink staking is to give ecosystem participants, including node operators and community members, the ability to increase the security guarantees and user assurances of oracle services by backing them with staked LINK tokens. 

“The staking of LINK in turn enhances the ability for nodes to receive jobs and earn corresponding fees within the Chainlink Network.”

The network maintained that the shift would help improve Chainlink’s security while improving decentralised participation and developing sustainable rewards for long-term use. 

Price rise suggests positive response to staking plan

The reaction to Chainlink’s announcement seems to have been overwhelmingly positive. The cryptocurrency has risen by 17% in the past seven days, reaching as high as $8.8625 earlier today at 12:49 BST (UTC +1).

Chainlink’s market capitalisation rose as high as $4.1bn, having fallen as low as $2.7bn in mid-May.

Further reading

105 nations researching and developing CBDCs

Survey: Over 71% of Salvadorans say bitcoin law has not benefited them