Is Chainlink a good investment? Not for 5 reasons

chain link is a major blockchain project widely used by most developers of decentralized finance (DeFi) and non-fungible token (NFT). It’s a somewhat different platform from other blockchain networks like Cardano and Ripple. In this article, we will explain five reasons why we think Chainlink is a good investment for short and long term investments.

What is Chainlink?

Before identifying the five reasons why Chainlink is a good investment, let’s explain what a network is and how it works. Chainlink is a smart oracle network that helps deliver off-chain data to on-chain ecosystems such as DeFi and non-fungible tokens (NFTs).

For example, a developer building a decentralized stock trading platform needs to feed the market on publicly traded stocks. Therefore, instead of directly processing trades, they partner with Chainlink, which has all this data and tools to integrate it into their ecosystems.

The same is true for other industries. A good example of these industries is sports betting, which is also disrupted by blockchain projects. For a decentralized betting platform to work properly, it must have access to reliable gaming data. Chainlink can provide these numbers.

Over the past few months, Chainlink has added more ecosystem solutions. For example, it recently launched Keepers, which is an automation platform for smart contracts. It also introduced proof of reserves, cross-chain communication tools and VRF platforms.

LINK is the management token of the Chainlink ecosystem. It is a leading cryptocurrency with a market capitalization of over $ 5.4 billion, making it the 26th largest cryptocurrency in the world.

Learn more about buying Chainlink .

Chainlink has a dominant market share

One of the reasons why Chainlink is a good investment is that it has a dominant market share in the oracle industry. As oracles proliferate in the industry, Chainlink is the most popular. It has been adopted by some of DeFi’s major players such as Aave, Uniswap, Anchor Protocol, and Curve Finance.

According to DeFi Llama, Chainlink has a Total Secured Value (TVS) of more than $ 53 billion, giving it 54% market dominance. The second largest players in the industry are Internal, which has a TVS of over $ 17 billion, and Maker, which has just 2 projects with a TVS of over $ 13 billion.

Therefore, the fact that it has a good market share and good brand reputation is a positive catalyst for Chainlink.

Large market size

Chainlink is a leading player in an industry with huge potential. For example, the decentralized financial sector has a total locked-in value (TVL) of over $ 200 billion. This is noticeable growth considering that the sector did not exist a few years ago.

While the industry is highly volatile, analysts believe it represents the future of finance. A future where people embrace the concept of smart contracts in all aspects of their financial well-being, such as saving and investing.

Analysts expect the industry Challenge more than 100 times larger than today. Therefore, if this prediction comes true, Chainlink will likely play a role in this matter.

The same goes for other industries that need to be tokenized. For example, the decentralized betting industry is expected to be efficient due to existing industry regulations. If this happens, Chainlink will play a role.

There are other industries that benefit from decentralization. For example, Chainlink has a partnership with the Weather Channel, which means people can use this data to build their apps.

Chainlink is undervalued

One of the most important things about investing is to always buy a relatively undervalued asset. In my opinion, I think Chainlink is one of the most undervalued cryptocurrencies in the world.

At the time of writing, the coin is trading at its lowest level since January 2021. It has also fallen more than 78% from its highest level in 2021. Its market capitalization has also fallen to just 5 billion dollars.

Therefore, I think Chainlink is a very undervalued cryptocurrency. For one, while his market value was at $ 5 billion, he helped secure more than $ 54 billion in assets. This is a sign that there is more room for his growth.

The reason for underrating is because many people don’t know much detail about the platform and what it does.

Relationship to other assets

Another reason why you should invest in Chainlink is because it has a high correlation with other assets such as stocks and cryptocurrencies. A closer look at the blockchain industry shows that most cryptocurrencies have fallen sharply over the past few months.

For example, Bitcoin fell from approximately $ 68,000 in November 2021 to $ 38,000 currently. Similarly, Ethereum went from approximately $ 5,000 to $ 2,800. In total, the market capitalization of all digital coins has grown from over $ 3 trillion to approximately $ 1 trillion.

Other assets such as stocks also collapsed. This means that Chainlink’s current vulnerability is not an isolated case. This means that the coin will bounce when others do the same.

Eric Schmidt is a strategic advisor

Finally, Chainlink is a good investment due to the fact that Eric Schmidt, former CEO and President of Google is a strategic advisor. This is a remarkable thing because of the wealth of experience he brings to the network and the fact he has a lot of connections in the right places. As you may recall, Schmidt was the man who helped make Google one of the most important companies in the world. On a note, the founder of Chainlink has declared :

“Eric’s experience and knowledge in building global software platforms for the next generation of innovation will be invaluable as we help developers and institutions usher in a new era of economic fairness and transparency. »

Leave a Comment