- Chainlink has a substantial market share in the crypto industry.
- It has multiple use cases and total addressable market (TAM).
- Chainlink has transitioned into a decentralized oracle network.
Chainlink price has been in a tight range in the past few days as the crypto industry remains under pressure. LINK was trading at $6 on Friday, higher than the year-to-date low of $5.67. This price is close to its highest level this month. Here are some of the top reasons to invest in LINK.
Chainlink has a leading market share
Chainlink is a blockchain project that makes it possible for developers to integrate off-chain data to the blockchain dApps. Therefore, as the industry grows, the need for external data to blockchains will continue growing.
Its biggest use-cas for now is in decentralized finance (DeFi), where it powers some of the best platforms like AAVE and Uniswap. These products use its price feeds and other products. Therefore, investing in a platform with a big market share makes sense.
Data compiled by DeFi Llama shows that Chainlink has helped to secure 232 DeFi protocols. These protocols, excluding those in centralized finance (CeFi) have a combined value of over $21 billion. This means that it has a market share of over 62%. The other top players in the sector are Maker, WINKLink, TWAP, and Band Protocol.
Find out how to buy Chainlink.
Chainlink has more use cases
Another reason why LINK price will do well in the long-term is that it has more use cases. A few months ago, Chainlink inked a deal with SWIFT Society that will see it power its blockchain projects. This is an important thing since SWIFT handles trillions of dollars every day.
Chainlink has a significantly big total addressable market than what most people know. For example, developers building decentralized finance products in insurance can collect external data and move it to the blockchain. Some of these numbers could be on temperature and rainfall. Some of the companies using its service for insurance are Arbol and Acre Africa.
Chainlink can also be used in industries like sports betting, NFTs and gaming, and climate markets among others. Further, it recently introduced features like proof of reserves that will be used by exchanges to verify their crypto holdings.
In addition to oracle networks, Chainlink has introduced more features and products like cross-chain communications, verifiable random number generator, and Keepers.
LINK staking is now enabled
Finally, another reason for investing in Chainlink’s LINK is that it has moved from a centralized oracle network (CON) into a decentralized oracle network. As part of this transition, it means that people can now take part in its governance.
Therefore, it has become possible for people to stake and generate returns in the network. The current staking yield for Chainlink staking is about 7%.
