The reason Chainlink (LINK) is growing exponentially

Jan 09, 2022

In the past year, the increasing use of Chainlink feeds combined with the introduction of new network-based services has led to a significant increase in overall integrations.

By supporting hybrid smart contracts, the blockchain-agnostic protocol uses the largest collection of decentralized services and supports over 700 Oracle networks.

Integrated on Layer-1 and Layer-2

The Chainlink ecosystem kicks off in 2022 with more than 1,000 projects, and half of those will happen in 2021, according to data report the last few years.

In the past year, Chainlink services were introduced on several Layer-1 and Layer-2, including Arbitrum, Avalanche, Binance Smart Chain (BSC), Ethereum, Fantom, Harmony, Heco, Moonriver, Optimism, Polygon, Starkware and xDai.

Chainlink integrates Layer-1 and Layer-2

Chainlink integrates Layer-1 and Layer-2

In order to meet the demand for inter-chain solutions, Chainlink is also actively developing a common cross-chain protocol for the blockchain industry, the Chain Interoperability Protocol (CCIP).

In early 2021, Chainlink secured a total of $ 7 billion in the blockchain ecosystem, and 12 months later, the Total Guaranteed Value (TVS) exceeded $ 75 billion

 

Main driver of Chainlink's exponential growth (LINK)

TVS on Chainlink

With over 700 decentralized Oracle networks publishing data on multiple independent blockchains, the most common records used by DeFi applications include financial market prices as price feeds.

Provides access to secure off-chain computing

Over the past year, Chainlink has launched many services that provide secure and reliable off-chain computing to various blockchains.

Chainlink’s Verifiable Random Function (VRF), first released on Ethereum in late 2020, expanded support for BSC and Polygon in 2021.

Chainlink VRF offers smart contracts with access to a secure on-chain random source – required by NFTs and on-chain gaming applications.

Chainlink VRF supports a multi-chain ecosystem and has grown exponentially with 2.5 million requests for dApps

Main driver of Chainlink's exponential growth (LINK)

Number of Chainlink VRF requests issued to the dApp

 

Chainlink Keeper was also added in 2021 – further expanding support for off-chain computations while allowing developers to outsource and simplify DevOp tasks.

In the meantime, the Chainlink price feed has been updated to the OCR protocol (off-chain reporting), which enables 10 times more real data distribution in the chain.

In the course of 2021, Oracle from Chainlink expanded the range of available on-chain data to include Proof of Reserves, Proof of Delivery, Ethereum gas prices, Total Capitalization Market, Total Value Locked (TVL) in DeFi applications, sports scores, election races , Identity data, compliance metrics and weather reports.

The network successfully and securely distributed over 1.1 billion data points in the chain.

Main driver of Chainlink's exponential growth (LINK)https://imagesofcmsprod.s3.ap-southeast-1.amazonaws.com/blog/1641735947505.png

Chainlink distributed data points

 

In 2021, global companies such as Associated Press, AccuWeather and Amazon Web Services will begin using Chainlink as the “gateway to the blockchain economy”.

As more on-chain data becomes available, new use cases for hybrid smart contracts will emerge that are expected to increase guaranteed value

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