Chainlink (LINK) has been expressing moderate volatility. The LINK token has moderate price swings and it is protected from price manipulation.
Chainlink has been providing real-world data to Dapps and smart contracts. The total value secured (TVS) on its platform increasing to $58 billion from $7 billion in early 2021, this is an increase of more than 800%. The market cap of LINK, which is the Oracle’s utility token has been up only by 30% to $6.1 billion at the same point in time.
The disconnect between the Total value secured by ChainLink Vs. Link’s growth is due to market saturation, which is also expected to limit the future growth prospects, changes in Dapps demand, node operator fees and operating costs and dilution of Links circulating supply.
However, with the coming of Chainlink 2.0 some of these issues might get addressed. Further new use cases and efficient off-chain computations can improve adoption.
Chainlink Labs is focused on support startups to “help create a lasting Web3 ecosystem.” There is a program called Startup with ChainLink which will help early-stage founders with free information resources, community and access to mentors of different business expertise.
Startups will be provided access to scaling information, operations best practices, webinars, events and community groups. Leading start up projects will be able to gain access to mentors and venture capitalists. Thus, startups with Chainlink will be able to get things right straight from the beginning.
Chainlink are bridging that gap between traditional technology software and blockchain. Chainlink’s verifiable random function, ensures functions which are to be executed randomly are done so. The project is only getting better with time with improved oracles. There is a Chainlink integration happening every other day.
For instance, in the case of verifying if a mint of BAYC was done randomly – from the outside it can look like all happened well, but Chainlink’s verifiable random function if everything was truly random. The mess ups and manipulation with random value allocations can be overcome with Chainlink’s verifiable random function.
LINK, an ERC-20 token is the native digital token on ChainLink. It has the ERC-223 functionality and therefore permits LINK to work as a value transfer asset across the Chainlink ecosystem. LINK serves several utility purposes. LINK is used to pay for operator node fees. Link is also used on staking.
The staking concept in the Chainlink network is different it allows node operators to have their skin in the game and therefore is used to incentivize good behaviour. To be a node operated in Chainlink ecosystem users should buy LINK for staking.
Developers whose smart contracts need access to offline data through the Chainlink DONs will pay for the DON services using LINK. The token is also used for speculation buying and selling for profits.
LINK can be purchased from CEX and DEX.
A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5
Get the latest Crypto & Blockchain News in your inbox.
