Chainlink does not stop growing its influence as a data source, connecting even more blockchains and projects. In high-speed trading environments, Chainlink is the top choice for reliable oracle data, especially for pricing information.
In the past weeks, Chainlink added new connections for services and projects on six major blockchains.
The new batch of projects onboarded by Chainlink includes mostly DeFi and FinTech hubs, but also two new tokenized Web3 games. Chainlink also communicates directly with developers, offering testing and implementation tools. Unfortunately, the space has drawn scammers with fake platforms
Chainlink Focuses on Tokenization Infrastructure
Chainlink offers scalable solutions for new tokenization, especially following the trend of real-world assets (RWA). A growing list of projects is already using Chainlink to generate valuable tokens connected to real-world assets or economic activity.
The RWA trend expands ChainLink integrations, which are now more than 2,500, linked to 140 prominent projects in crypto space.
Chainlink Labs, the development company that is expanding its influence, is also expanding its team with new hires, showing a bullish trend for crypto builders. Based on GitHub commits, Chainlink is among the top 10 most active projects.
Chainlink automates decisions in the expanding crypto infrastructure, eliminating the need for human involvement. Chainlink solves the problem of gas fees by selecting optimal conditions for transactions. Using oracles, projects can handle transaction traffic based on optimal gas fees at any given time.
Chainlink is also an ambassador for the growth of blockchain projects and favors more lenient regulation. The project’s supporters also note that Chainlink has a real application and is not the source of limited price feeds, as previously accused.
Demand for reliable data services is also high, with many projects trying to copy the Chainlink model. Its annual network fees, which reach $2, reveal Chainlink’s usage of $39M. The protocol itself has annual revenues above $630K.
Chainlink still has a first-mover advantage when it comes to facilitating inter-chain connections. One of the trends for 2024 is to build more bridges, asset swaps, and cross-chain smart contracts. Chainlink has positioned itself to provide reliable data for all of those operations.
Additionally, Chainlink has built its CCIP protocol, now open to developers for multi-chain tasks and projects. Chainlink easily connects some of the most widely used blockchains and offers tools and guidance to builders.
One of the driving narratives for Chainlink will be its promise to connect mainstream and crypto-based finance. It is possible to test Chainlink connectivity to the existing SWIFT banking system. Tokenization drives from mainstream financial firms may increase the need for Chainlink services.
Is Chainlink an Undervalued Project?
Project growth for Chainlink has previously translated into a series of price booms. Currently, LINK trades around $13.60, while the community awaits a more significant breakout. After a successful bull market in the first quarter of 2024, Chainlink is now awaiting a new direction. Current market conditions are seen as a crossroads, either leading to a correction, or to a new altcoin bull market.
LINK peaked at around $47 during the 2021 bull market, and only recovered to a peak of $20.70 in 2024. Currently, around 58% of the LINK supply is unlocked and in circulation, though only a small part of the free unlocked coins are traded each day.
Around 7.23% of the supply is also locked for staking, valued at around $577M. Some of the tokens are needed for node operations, but all LINK is movable and not locked in a smart contract. Chainlink only distributed 35% of all tokens during its public sale, leaving a generous allocation for the team and future development.
Despite this, LINK supporters see the asset as somewhat undervalued and poised for more accumulation.
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