In an in-depth research report by Jake Pahor, a Web3 researcher and analyst, Chainlink (LINK) is compared to Google in the cryptocurrency space.
This analysis sheds light on how Chainlink is “revolutionizing” the industry, driving institutional adoption, and shaping the decentralized future. Let’s delve into the key findings of Pahor’s report to understand why Chainlink is being likened to the tech giant Google.
Discovering Chainlink’s Impact On The Industry
Chainlink operates as a decentralized oracle network that connects smart contracts to real-world data. Its “highly adopted infrastructure” is widely utilized for various purposes, including price feeds, data feeds, proof of reserves, smart contract automation, and verifiable on-chain randomness (VRF).
According to Pahor’s analysis, the platform’s “versatility” has led to widespread utilization across multiple industries. It has found applications in financial services, decentralized finance (DeFi), gaming, non-fungible token (NFT) collectibles, climate markets, enterprise solutions, and insurance sectors.
Furthermore, Pahor believes that the launch of the Chainlink Community Improvement Proposal (CCIP) has been a “game-changer” for the platform.
CCIP enables seamless transfer of data and value between existing systems and both public and private blockchains. Its adoption continues to surge with notable entities such as base chain, ANZ/SWIFT, Vodafone, DTCC, and Affine Pass NFTs.
Moreover, the protocol also stands as the dominant and most widely used oracle, capturing over 46% of the market share. Notable competitors in the space include WINkLink, Chronical, Pyth, and TWAP. The Total Value Secured (TVS) using Chainlink oracles currently amounts to $11.3 billion across 348 protocols, further establishing its position.
Chainlink Emerges As Top Oracle Provider
Chainlink accrues fees and rewards through various methods, including CCIP, keepers, requests, and VRF V1 and V2. In the past 30 days, the platform has generated $180,000 in fees and $111,000 in revenue, placing it at the top among oracles and 71st overall, according to DeFiLlama.
Moreover, the LINK token plays a crucial role within the network for node operator fees and implicit and explicit staking.
According to Pahor’s report, the recently released Chainlink 2.0 aims to usher in a new era of growth through its staking program, BUILD Program, and SCALE Program. These initiatives are expected to fuel further development and expansion.
In addition, Pahor believes that the platform has a solid foundation, backed by multiple audits and a “strong team” led by Sergey Nazarov and Steve Ellis. With over 400 employees, the protocol has raised $32 million in funding through four rounds.
The project’s governance is facilitated through validation, ensuring on-chain Oracle behavior monitoring, and assisting users in selecting oracles.
Breaking Down Chainlink’s Market Cap
In addition to Pahor’s on-chain analysis research, according to DefiLlama data, Chainlink has a market cap of $6.163 billion and a token price of $11.11, indicating investor confidence and future growth potential.
The platform’s fully diluted valuation stands at $11.067 billion. With a 24-hour token volume of $915.62 million and token liquidity of $45.87 million, Chainlink exhibits high trading activity and ample market liquidity.
In summary, Jake Pahor asserts that Chainlink holds the potential to become the “Google of Crypto.” With its decentralized oracle network, wide adoption across industries, dominant market share, foundations, and revenue generation, the crypto technology platform exhibits similarities to Google’s impact on the internet, according to Pahor.
Featured image from Shutterstock, chart from TradingView.com