Main navigation

Why Is Chainlink (LINK) Gaining Traction?

Thu, 02/16/2023 - 00:00
article image
Sabrina Martins Vieira
Partnerships and value proposition of Chainlink are contributing to its strong performance
Why Is Chainlink (LINK) Gaining Traction?
Cover image via

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

Read U.TODAY on
Google News

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.

article image
About the author

Sabrina has been creating content for the cryptocurrency market since 2018. Her career includes work for important news portals in Brazil, such as Cryptonizando and Guia do Bitcoin.
In addition, she is a partner of the portal and YouTube channel É Top Saber.
Her passion for blockchain news and education led her to create the news portal Bolhacrypto.
In order to help companies and projects in the cryptocurrency market to develop, Sabrina has been leading Varandacrypto, a company that offers content for blockchain projects.