• Why should Chainlink investors be aware of this before rushing to sell?

  • The hype surrounding several altcoins has shifted in the last few months. Polygon and Solana, for example, have maintained high levels of traffic, while Cardano has recently risen to prominence as a major altcoin. In 2020, Chainlink had a similar story, but by 2021, the asset had evolved into more of a journeyman.

    Individual surges have been fewer, and at press time, LINK was still consolidating beneath $20, its 2020 high. However, Chainlink is more than just a price comparison site. This could have a bigger impact on the alt’s market performance in the future.

    Smart Contracts and Oracles?

    The primary goal of Oracles is to develop strong security measures for a blockchain. Because the huge external data required to maintain connectivity is exceedingly rigid, it is a serious concern in light of the introduction of smart contracts. As a result, adding an oracle retrieves data from off-chain sources. The information is subsequently delivered to a blockchain, where smart contract apps can consume it.

    A centralized oracle, on the other hand, is a potential point of failure because it can be corrupted or go offline. To ensure network security, the oracle mechanism must be decentralized. Furthermore, Chainlink provides the ecosystem’s best oracle solution.

    With aspirations to provide access to many more blockchains and layer 2 solutions such as Arbitrum, Optimism, Solana, and beyond, the industry presently facilitates approximately 450 Chainlink Price Feeds operating across a number of blockchain networks, including Ethereum, Polygon, BSC, Avalanche, xDai, and Heco.

    As a result, Chainlink’s oracle services will have a significant impact in the future, given that the entire DeFi area is based on hybrid smart contracts. The increased interest in DeFi will indirectly increase the demand for oracles across many networks. This will eventually allow the price of LINK to scale based on its capabilities.

    What’s the status of network development?

    In terms of development activity, Chainlink has consistently facilitated a greater rate of development activity. The ecosystem’s Github repositories have consistently surpassed 1000, and the number of development contributors has remained high.

    It’s worth noting that development activity isn’t necessarily correlated with active price performance. It does, however, provide critical clarity as to whether or not a project is outmoded.

    But, where does Chainlink stand right now?

    Because the trend is still bearish, it’s tough to draw out a narrative in the short run. If the trend shifts back to positive, additional DeFi projects may see more traffic, and the demand for Oracles may increase even more.

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