Chainlink's 5.62% Price Drop to $6.88: All Key Takeaways for July 15, 2023
Chainlink, with a 5.62% price drop in the last 24 hours, is currently trading at $6.88. Despite this recent decline, the cryptocurrency has seen an 11.61% price increase in the past 7 days. With a circulating supply of 520 million LINK, Chainlink's market cap stands at $3,558,915,605.
Chainlink's Purpose and Function
Chainlink is a framework for building Decentralized Oracle Networks (DONs) that bring real-world data onto blockchain networks. This enables the creation of hybrid smart contracts. These DONs provide decentralized services such as Price Feeds, Proof of Reserve, Verifiable Randomness, Keepers, and the ability to connect to any web API.
Chainlink's oracle networks are blockchain-agnostic and are incentivized through the native LINK token, used for node payments and network collateral.
A Brief History of Chainlink
Chainlink is an open-source protocol developed by Chainlink Labs, founded in 2014 by Sergey Nazarov and Steve Ellis. The Chainlink Network went live on the Ethereum mainnet on June 1st, 2019 and has since expanded to support additional blockchains and layer 2 networks such as Polygon, BSC, Avalanche, Arbitrum, and more.
Opinion Prediction
Despite the recent price drop, Chainlink's 7-day price increase indicates a potential for recovery. The expansion of Chainlink to support additional blockchains and layer 2 networks also suggests a growing ecosystem that could positively impact its market value in the long run. However, as with all cryptocurrencies, price movements can be unpredictable and are subject to various market factors.
How Does Chainlink Impact Decentralized Finance?
Chainlink plays a crucial role in the Decentralized Finance (DeFi) sector. It provides real-world data to smart contract applications, which is essential for their operation. The most common use case includes securing DeFi protocols which require financial market data. Chainlink offers a variety of on-chain data feeds that are used to secure tens of billions of dollars. Integrated applications include Aave, Compound, Synthetix, and more.
What is the Role of the LINK Token in the Chainlink Network?
LINK is an ERC-677 token that incentivizes the proper operation of Chainlink DONs. It is used to pay Chainlink nodes for access to real-world data and other oracle services. In the future, Chainlink nodes may be required to lock up LINK tokens as collateral to back their oracle services, which can be slashed for malicious behavior. The token has also been bridged across multiple blockchains to enable native Chainlink oracle integrations.
