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Why Is Chainlink (LINK) Gaining Traction?

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Thu, 16/02/2023 - 0:00
Why Is Chainlink (LINK) Gaining Traction?
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Chainlink (LINK) is one of the most widely adopted protocols on the cryptocurrency market. This is because it enables smart contracts to obtain real-world information from trusted external sources, which is crucial for the widespread acceptance of decentralized contracts.

Additionally, it has proven to be a secure network with accurate and tamper-proof information and has successfully integrated with other blockchains that are more scalable than Ethereum (ETH), providing more options for investors who wish to utilize the oracle by paying lower fees and making faster transactions.

Key partnerships of Chainlink

Chainlink has recognized over time that partnerships are essential for its development in the cryptocurrency market. For this reason, it is collaborating with various players in the blockchain industry, which strengthens it further and helps in the process of greater adoption.

An excellent recent partnership made by the decentralized oracle was with Avalanche. It aims to bring more transparency and security to the DeFi world through Chainlink's proof-of-reserves (PoR) model. With this collaboration, decentralized applications on the AVAX network can mitigate risks around chain explorations, ensuring greater security and transparency for users.

In addition, Chainlink Automation, a solution for decentralizing smart contract functions, was launched on Arbitrum One. As a result, developers can create highly scalable and low-cost smart contract applications with more features and lower costs.

Whales' interest in LINK

Large investors are also keeping an eye on Chainlink's token, choosing to hold LINK in their wallets instead of in exchanges. According to the WhaleStats' Twitter profile, LINK was added to the list of cryptos held by the top 100 Ethereum whales. The news was well received, as it reflects the confidence of large investors in LINK.

At the time of writing, LINK has become the eighth most accumulated token by whales who typically buy assets they believe have significant growth potential in the future, further strengthening Chainlink as an attractive option for those seeking more secure and reliable smart contracts.

What to expect now?

Despite all the excitement surrounding LINK, it is important to note that the cryptocurrency market is going through a challenging period, with investors waiting for the SEC's understanding of crypto staking, one of Chainlink's functionalities. Therefore, it is always essential to be cautious with your investments, especially during these uncertain times, even though LINK is a token of a significant project for DeFi.

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