In an in-depth investigation report by Jake Pahor, 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 adoptionand shaping the decentralized future. Let’s dive into the key findings of Pahor’s report to understand why Chainlink is compared to tech giant Google.
Discovering the impact of Chainlink on the industry
Chainlink works as a decentralized oracle network that connects smart contracts with real-world data. Its “highly adopted infrastructure” is widely used for various purposes, including pricing, data, 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 use across multiple industries. It has found applications in financial services, decentralized finance (DeFi), gaming, non-fungible token (nft) collectibles, weather 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 public and private blockchains. Its adoption continues to increase with notable entities such as Basechain, ANZ/SWIFT, Vodafone, DTCC and Affine Pass nft.
Furthermore, the protocol also stands as the dominant and most used oracle, capturing more than 46% of the market share. Notable competitors in the space include WINkLink, Chronical, Pyth, and TWAP. The total value assured (TVS) using Chainlink oracles currently stands at $11.3 billion across 348 protocols, further establishing its position.
Chainlink Emerges as Top Oracle Provider
Chainlink accumulates fees and rewards through various methods, including CCIP, guardians, requests, and VRF V1 and V2. In the last 30 days, the platform has generated $180,000 in fee and $111,000 in revenue, ranking him first among oracles and 71st overall, according to DeFiLlama.
Furthermore, the LINK token plays a crucial role within the network to node operator fees and implicit and explicit bets.
According to Pahor’s report, the recently launched Chainlink 2.0 aims to usher in a new era of growth through its staking program, the BUILD program, and the SCALE program. These initiatives are expected to drive further development and expansion.
Additionally, Pahor believes 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 across four rounds.
Project governance is facilitated through validation, ensuring monitoring of on-chain oracle behavior and helping users select oracles.
Breaking down Chainlink market capitalization
In addition to Pahor’s on-chain analysis research, according to DefiLlama dataChainlink has a market capitalization of $6.163 billion and a token price of $11.11, indicating investor confidence and potential for future growth.
The platform’s fully diluted valuation amounts to $11,067 million. 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 claims that Chainlink has the potential to become the “crypto Google.” With its decentralized Oracle network, wide adoption across industries, dominant market share, foundations and revenue generation, the crypto technology platform shows similarities to Google’s impact on the Internet, according to Pahor.
Featured image from Shutterstock, chart from TradingView.com
