Is Chainlink a good investment? No for 5 reasons

chain link is a major blockchain project widely used by most decentralized finance (DeFi) and non-fungible token (NFT) developers. It is a relatively different platform from other blockchain networks like Cardano and Ripple. In this article, we will explain the 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 the network is and how it works. Chainlink is an intelligent oracle network that helps deliver off-chain data to on-chain ecosystems like those of DeFi and non-fungible tokens (NFTs).

For example, a developer building a decentralized stock trading platform needs market feed on publicly traded stocks. Therefore, instead of processing trades directly, 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 being disrupted by blockchain projects. For a decentralized betting platform to work well, it must have access to credible gaming data. Chainlink can provide these numbers.

Over the past few months, Chainlink has added more solutions to the ecosystem. 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 governance token of the Chainlink ecosystem. It is a top cryptocurrency that has a market capitalization of over $5.4 billion, making it the 26th largest cryptocurrency in the world.

Learn more about buying Chainlink .

Chainlink holds 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 the number of oracles in the industry increases, Chainlink is the most popular. It has been adopted by some of the major DeFi players like Aave, Uniswap, Anchor Protocol, and Curve Finance.

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

Therefore, the fact that it has a good market share and a 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 finance sector has a total value locked (TVL) of over $200 billion. This is remarkable 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 areas of their financial well-being, such as savings and investments.

Analysts expect the industry Challenge more than 100 times larger than it is today. Therefore, if this prediction comes true, it is likely that Chainlink will have a role to play in this regard.

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

There are other industries that stand to benefit from decentralization. For example, Chainlink has a partnership with Weather Channel, which means people can use this data to develop 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 the lowest level since January 2021. It has also fallen by more than 78% from its highest level in 2021. Its market capitalization has also fallen to just 5 billions of dollars.

Therefore, I think Chainlink is a very undervalued cryptocurrency. For one, while his market value stands at $5 billion, he has helped secure over $54 billion in assets. This is a sign that there is more room for him to grow.

The reason for the underrating is that many people don’t know many details about the platform and what it does.

Correlation with other assets

Another reason why you should invest in Chainlink is that it has a high correlation with other assets like 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 has fallen from around $68,000 in November 2021 to $38,000 currently. Similarly, Ethereum has gone from around $5,000 to $2,800. In total, the market capitalization of all digital coins has grown from over $3 trillion to around $1 trillion.

Other assets like stocks also fell. This means that Chainlink’s current weakness 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, the 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 that he has a lot of connections in the right places. As you remember, Schmidt was the person who helped turn Google into one of the most important companies in the world. In a note, the founder of Chainlink has declared :

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

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Is Chainlink a good investment? No for 5 reasons

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