What role does Chainlink play in the parabolic rally of these altcoins?
What role does Chainlink play in the parabolic rally of these altcoins?
2021 is the year that decentralized finance really takes the crypto industry by storm as several new protocols and trading platforms like Ethereum emerge at Layer 1. Another trend emerging in the smart contract platforms these applications are built on is integration with Chainlink’s decentralized oracle network.
Chainlink provides real data and intelligence for on-chain smart contracts by using Oracle. The service includes other payment methods, price feeds, and events that are not derived from the underlying blockchain.
Thanks to the partnerships, Chainlink is gradually becoming one of the most integrated networks in the space. Not only Layer 1 protocols, but also exchanges like BitYard, Kucoin and traditional wealth managers like Gemini use this network functionality. In November last year, the network announced that its total value secured by smart contracts exceeded $75 billion Bitcoin Magazine reported.
While Chainlink’s viability for blockchains is unquestionable as the network grows in popularity, will it increase the value of native tokens?
Cryptocurrency enthusiast Alpha believes this is happening, as has been the case recently To mark Correlation between Oracle Chainlink’s integration with blockchains and increasing demand for their native tokens.
“Chainlink makes blockchains more useful. I wanted to show you what happens to Layer 1 token demand when Chainlink oracles are integrated. Anyone who recognizes this trend will make a significant amount of money in 2020 and 2021…
Once developers have access to a secure, decentralized oracle, they can build dApps faster. In many cases, the dApp can only be released after integration because they can trust the security of the Chainlink network.”
If you look at the leading smart contract platform Ethereum, which hosts the largest amount of available decentralized applications (dApps) and was the first to integrate Chainlink oracles, no direct connection can be made. However, they still play an important role in how the major markets on Ethereum work.
Source: Twitter
While MakerDAO relies on its price feed to determine the value of the underlying collateral backing the asset, stablecoin issuers like Paxos and BitGo use a proof-of-reserve network to prove their assets.
However, there is a more pronounced trend among Ethereum’s competing blockchains, whose DeFi ecosystem is still relatively in its infancy. A good example is Avalanche, whose native token AVAX went parabolic shortly after its integration with Chainlink oracles last July.
Source: Twitter
Even then-founder Jihan Wu noted that hundreds of projects building on top of the ecosystem were waiting for Oracle functionality to be integrated before launching their products.
Avalanche has since become one of Ethereum’s fiercest competitors, with Bank of America even recently claiming that it could one day surpass the largest smart contract blockchain.
A similar trend has occurred with Fantom’s native FTM token since the network’s integration with Chainlink last August.
“What about Fantom? Same result. FTM price is increasing in a parabolic pattern.”
Source: Twitter
Other leading smart contract platforms following a similar path are Solana and Terra, both of which have already implemented integrations on their testnets. Alpha expects similar results for these layers 1 as long as “there are active developers and dApps deploying on their respective chains”.
Chainlink itself is successively expanding the ecosystem with features such as staking and Cross-Chain Interaction Protocol (CCIP) to be implemented in 2022.
However, these developments have not boded well for LINK’s price action as it has remained in limbo since the crypto crash last May.
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What role does Chainlink play in the parabolic rally of these altcoins?
What role does Chainlink play in the parabolic rally of these altcoins?
2021 is the year that decentralized finance really takes the crypto industry by storm as several new protocols and trading platforms like Ethereum emerge at Layer 1. Another trend emerging in the smart contract platforms these applications are built on is integration with Chainlink’s decentralized oracle network.
Chainlink provides real data and intelligence for on-chain smart contracts by using Oracle. The service includes other payment methods, price feeds, and events that are not derived from the underlying blockchain.
Thanks to the partnerships, Chainlink is gradually becoming one of the most integrated networks in the space. Not only Layer 1 protocols, but also exchanges like BitYard, Kucoin and traditional wealth managers like Gemini use this network functionality. In November last year, the network announced that its total value secured by smart contracts exceeded $75 billion Bitcoin Magazine reported.
While Chainlink’s viability for blockchains is unquestionable as the network grows in popularity, will it increase the value of native tokens?
Cryptocurrency enthusiast Alpha believes this is happening, as has been the case recently To mark Correlation between Oracle Chainlink’s integration with blockchains and increasing demand for their native tokens.
“Chainlink makes blockchains more useful. I wanted to show you what happens to Layer 1 token demand when Chainlink oracles are integrated. Anyone who recognizes this trend will make a significant amount of money in 2020 and 2021…
Once developers have access to a secure, decentralized oracle, they can build dApps faster. In many cases, the dApp can only be released after integration because they can trust the security of the Chainlink network.”
If you look at the leading smart contract platform Ethereum, which hosts the largest amount of available decentralized applications (dApps) and was the first to integrate Chainlink oracles, no direct connection can be made. However, they still play an important role in how the major markets on Ethereum work.
Source: Twitter
While MakerDAO relies on its price feed to determine the value of the underlying collateral backing the asset, stablecoin issuers like Paxos and BitGo use a proof-of-reserve network to prove their assets.
However, there is a more pronounced trend among Ethereum’s competing blockchains, whose DeFi ecosystem is still relatively in its infancy. A good example is Avalanche, whose native token AVAX went parabolic shortly after its integration with Chainlink oracles last July.
Source: Twitter
Even then-founder Jihan Wu noted that hundreds of projects building on top of the ecosystem were waiting for Oracle functionality to be integrated before launching their products.
Avalanche has since become one of Ethereum’s fiercest competitors, with Bank of America even recently claiming that it could one day surpass the largest smart contract blockchain.
A similar trend has occurred with Fantom’s native FTM token since the network’s integration with Chainlink last August.
“What about Fantom? Same result. FTM price is increasing in a parabolic pattern.”
Source: Twitter
Other leading smart contract platforms following a similar path are Solana and Terra, both of which have already implemented integrations on their testnets. Alpha expects similar results for these layers 1 as long as “there are active developers and dApps deploying on their respective chains”.
Chainlink itself is successively expanding the ecosystem with features such as staking and Cross-Chain Interaction Protocol (CCIP) to be implemented in 2022.
However, these developments have not boded well for LINK’s price action as it has remained in limbo since the crypto crash last May.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
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