Chainlink’s decentralized oracle network could further accelerate the adoption of decentralized finance, insurance, supply chain, gaming, and gambling projects.
Coindesk report Bank of America (BofA) experts believe Chainlink is one of the main drivers of the growth of the total volume of funds locked (TVL) in the DeFi sector.
The adoption and growth of DeFi last year was driven by the “ability for hybrid smart contracts, or self-executing and tamper-proof digital agreements, to verifiably and securely access real-world data through oracle nodes like market prices, time of day, weather and GPS location,” the report says.
According to DeFi Llama, despite the decline in the cryptocurrency market, the TVL of the DeFi sector at the time of writing is $207.97 billion, which is 18% less than the all-time high reached in December 2021. Chainlink is the largest oracle network, accounting for over 59% of the total TVL in the Defi segment ($53.59 billion). Over the past year, the TVL has grown by 188%.
More than 1,100 projects use the Chainlink network, according to BofA. Nearly 800 companies have launched nodes to monetize their data, including Associated Press, Swisscom, and AccuWeather.
According to CoinGecko, Chainlink native token (LINK) is trading near $16.64 at the time of writing, well below its May high of $52.7.