Like every cryptocurrency, Chainlink has had its ups and downs. However, this well-managed project serves a real purpose in crypto and might have a solid chance of achieving mass adoption.
Now let’s get into the 3 reasons to be bullish on Chainlink and its native token: LINK.
1) Crypto needs an oracle Chainlink might just be one of the most important cryptocurrency projects in the world. For blockchain technology to reach its full potential, there has to be a way to bring data onchain. Sports scores, stock market prices, historical dates and everything in between. Crypto’s rapidly expanding ecosystem of smart contracts and metaverse applications demand data, and Chainlink can provide it. Chainlink already has 1,600 integrations with both crypto and non-crypto companies, and the project’s growth-rate is truly exciting. According to Chainlink’s blog, and I quote, “At the beginning of 2021, the Chainlink Network secured a total of $7B across the blockchain ecosystem. Twelve months later, Chainlink oracles secure over $75B in value—an order of magnitude increase in TVS.” Going 10x on total value stored in just twelve months is impressive, and has made Chainlink one of the largest protocols in DeFi.
2) Chainlink is the industry leader No other oracle comes close to matching the size and breadth of Chainlink’s ecosystem. The network effect is one of the best ways to measure how valuable a protocol is, and Chainlink already has a huge network effect. At this point, it would be very difficult for a new oracle to launch their service and overcome Chainlink’s massive first-mover advantage.
3) Interoperability is coming to Chainlink Sergey Nazarov, the creator of Chainlink, has a bold vision for the future of the project. Beyond just being an oracle, Sergey would like Chainlink to become an interoperability protocol that connects all of the largest blockchains to each other. With Chainlink as a hub, blockchains will be able to share data and reference each other’s smart contracts. Officially, the cross-chain bridge is referred to as the Cross-Chain Interoperability Protocol, or CCIP for short. In addition to sharing data, the protocol will also allow users to transfer tokens between chains. With its decentralized network of nodes, Chainlink already has all of the infrastructure in place to rapidly roll out the CCIP standard. If the new interoperability bridge gets adopted it could be incredibly bullish for Chainlink and the LINK token. Especially with LINK staking also coming up on the horizon!