, 2 years ago
It is impossible to imagine the DeFi sector without Chainlink (LINK), which represented a guarantor of the digital infrastructure of decentralized finance. Over the past two weeks, the whole DeFi market surged, promising investors fantastic price gains.
Among the winners were Polkadot, Perpetual Protocol, 1Inch, Uniswap, Sushi and finally Chainlink. But what is LINK's role in this context and why should 2021 continue to offer attractive prospects for Chainlink?
Chainlink contributes a significant part to the infrastructure of the other DeFi protocols. Through its Oracles, primarily on-chain data is reliably retrievable for the other protocols. In this way, for example, Chainlink provides rate data and thus enables the correct calculation of rates in the area of borrowing or lending.
In principle, Chainlink also has the capacity to fetch data from one blockchain to another, or even data that is not part of a blockchain at all. Here, supply chain management would be a use case that is outside of DeFi and can definitely benefit extremely from blockchain technologies like Chainlink.
Thus, Chainlink not only has a unique selling point technologically, but also a special position in the market. With each additional project that relies on Chainlink, the network effect strengthens.
One of the biggest milestones in the long list of partnerships was achieved just last week. The partnership with Paxos ensures that decentralized services from the US company will also be built on Chainlink in the future.
Paxos offers stablecoins, which the company hopes will be increasingly integrated into the global DeFi ecosystem in the future. These include PAX, which represents the equivalent value in U.S. dollars, and PAXG, a stablecoin whose equivalent value is backed by gold. Unlike many other stablecoins circulating in the market, Paxos has appropriate approvals to operate its own business in the US.
This combines regulatory compliance in the US market with availability in the DeFi ecosystem. Paxos is one of the most important players in the USA. The company is a strategic partner of PayPal and operates the PayPal-affiliated exchange itBit.
While many DeFi products that use Chainlink are considered experimental, Paxos is a partner of distinction and holds an international leadership position. Chainlink will ensure, through its technology and reconciliation, that users of stablecoins can be sure that they are backed by the equivalent amount of gold or U.S. dollars. The fact that Chainlink has become an important part of Paxo's plans has made investors bullish in recent weeks.
May 22, 2023
On Saturday, Tornado Cash's DAO was taken over by an attacker, or group of attackers. It's another backlash for the plagued coin mixer which makes privacy for Ethereum holders possible. In an interesting turn of events, a day later the attacker proposed to undo his attack. Never a boring day in crypto!
May 18, 2023
Stablecoin issuer Tether (USDT) in its recent reserves report reveals that the company holds approximately 52 thousand BTC, worth a respectable $1.5 billion. This is only a fraction of its total assets but signals an interesting potential trend of institutions allocating a piece of their capital to Bitcoin.
May 17, 2023
Ripple has been fighting against the SEC in court since December 2020. Some analysts believe that the case could conclude this year, while others argue that each party could try to appeal the court’s decision. Whether the subject is finally settled, all believe the first verdict will provide essential guidance in the US judicial system. Should the SEC lose, then many other crypto projects could be strengthened. Winning the case could mean the SEC could go after many other cryptos.
May 16, 2023
Apple's WWDC 2023 event will kick off on June 5. Rumors that Apple will present a first look at its AR/VR headset are doing the rounds. Supposedly looking like a pair of ski goggles, the headset will only arrive on the market at the end of this year. Being crypto investors, let's talk a bit about the potential implications of this for metaverse coins.
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