Chainlink has been one of the golden surprises of the last few months. On September 21, Chainlink’s network address activity hit a 2-month high.
It recorded almost 4,000 unique addresses within that period. In this article, we’ll see how Chainlink is boosting its usage indicators.
What is Happening with Chainlink?
Network activities are not the only mirror of Chainlink’s crazy growth. There’s been an increase in TVL, holder accounts, and daily volume. Furthermore, whales have continued accumulating LINK over the past few weeks.
This leads to a conclusion that massive activity is being carried out in the ecosystem.
Here are my 3 top-tier catalysts from the #SmartCon 2023 talk.
Let’s go!👇 pic.twitter.com/YG7n6LXZQE
— The Tradeguru || TTG🧠 (@The_Tradeguru) October 5, 2023
Chainlink had an impressive 30% increase in September, beating some of the biggest names within the top 20 ranking. We recently wrote about whales’ continued accumulation of LINK. You can get that here.
However, our biggest question has been “What are the catalysts behind Chainlink’s growth”? We’ve narrowed our answers to three major reasons.
— Lookonchain (@lookonchain) October 10, 2023
1st Reason: Chainlink Data Stream
Earlier this month, Chainlink announced the launch of its one-stop data solution, known as Chainlink Data Streams. It specifically designed this new solution for the DeFi industry. The data stream solution seeks to improve the speed of high-frequency market data access for derivative apps.
It achieves this by combining low-latency data transmission and automated trading execution. The new solution is already in Arbitrum and integrated into GMX.
— Chainlink (@chainlink) October 2, 2023
On-chain finance is a real thing. And the global market has realized the value of Chainlink’s data stream. Chainlink provides one of the fastest decentralized Oracle solutions. We can safely trace the increase in activity in Chainlink to its data streams. Some of the leading protocols rely on this solution to access high-frequency market data.
2nd Reason: CCIP Integration
Chainlink Cross-Chain Interoperability Protocol (CCIP) is another growth catalyst for the network. Top DeFi protocols such as Avalanche, Polygon, Optimism, and Ethereum have welcomed this feature. Similarly, DeFi protocols in derivatives and lending, such as Synthetix, have integrated CCIP. Furthermore, CCIP is also live on Base.
@Chainlink CCIP is now live on Base
We're looking forward to seeing how developers use this to build cross-chain applications even faster and unlock new use cases 🔵 pic.twitter.com/zvrmdMFjwr
— Base 🛡️ (@BuildOnBase) September 27, 2023
Chainlink believes that cross-chain integration will help actualize its securitization 2.0 plans. Here’s why this is important. This could lead to accurate cash flow reporting and improve transparency in transactions.
CCIP has huge potential to be great as it addresses security concerns. It has a unique risk management component, N-version programming. The N-version is built with RUST programming.
Chainlink CCIP's unparalleled security model is ushering in a new cross-chain era.
— Chainlink (@chainlink) October 3, 2023
Notably, the N-version uses several independent system implementations. This entails running them concurrently and comparing the results to ensure agreement. The system will pause to make any necessary corrections if there is a disparity in both. This is huge for the security of Chainlink’s network. It can result in reduced vulnerabilities to attack.
Furthermore, Chainlink’s CCIP will help secure the network by increasing interoperability between capital markets and blockchains via smaller software components.
3rd Reason: Chainlink staking V0.2
The V0.2 is the latest upgrade to Chainlink staking. Here, node operators and members have enough flexibility to stake while earning dynamic rewards. The V0.2 access begins with a 7-day migration phase. During this time, V0.1 stakers can move their rewards and staked LINK.
Chainlink published staking eligibility and other details in a blog post. The v0.2 has created a new buzz within the network.
v0.1 stakers are automatically eligible for v0.2 but non-v0.1 stakers can check their eligibility here.https://t.co/Icxcj3R1Co
The following criteria must be met for non-v0.1 stakers such as:
…to qualify for Early Access. pic.twitter.com/o02LALhYm2
— The Tradeguru || TTG🧠 (@The_Tradeguru) October 5, 2023
In conclusion, Chainlink is building a notable platform. It recently completed a successful partnership with the payment platform Swift. Chainlink has a mainstream appeal. Lots of financial institutions believe in Chainlink’s potential to bridge the gap between Web2 and Web3.
"Working with more than a dozen major financial institutions and market infrastructures and Chainlink, a leading Web3 services platform, Swift has successfully demonstrated that it can provide a single point of access to multiple networks using existing, secure infrastructure,… pic.twitter.com/Z7qplaMLXg
— Chainlink (@chainlink) September 2, 2023
At the time of publishing this article, LINK trades at $7.33.
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