Cryptocurrency Chainlink Surpasses Previous Record in Total Value Secured (TVS), Locking Down $100 Billion in Decentralized Finance (DeFi)
In a significant development for the world of decentralized finance (DeFi), Chainlink has achieved a milestone by securing a total value of $100 billion. This milestone underscores the growing dependency on decentralized oracle networks like Chainlink as the crypto markets recover and institutional adoption rises.
Chainlink's strategic partnerships with major players in traditional finance have been instrumental in this growth. The Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange (NYSE), has integrated Chainlink's high-quality FX and precious metals data for its Data Streams. Institutional entities such as Mastercard, DTCC, and SWIFT have also partnered with Chainlink, enhancing the connection between DeFi and TradFi.
One such partnership is with Solowin Holdings, which has integrated Chainlink's Proof of Reserve and NAVLink services into its tokenized money market fund. This collaboration enables real-time on-chain verification, bridging the gap between traditional finance (TradFi) and DeFi.
Moreover, Chainlink's infrastructure serves as the basis for thousands of smart contracts in various applications, including lending protocols, prediction markets, tokenized assets, and synthetic products. For instance, Polymarket, a prediction market, is using Chainlink for more accurate predictions.
Aave v3 holds more than 70% of the Chainlink Total Value Secured (TVS), making it the largest securitor with an amount of over 70.9 billion. This underscores the confidence in Chainlink's services within the DeFi ecosystem.
Chainlink's vision extends beyond $100 billion, aiming towards trillions. With the potential to tokenize trillions of real estate, bonds, and commodities due to RWA tokenization, this ambitious goal seems within reach.
The LINK token, used to pay for Chainlink's oracle services and staked by node operators to secure the network, has benefited from this growth. The token reached a high of $24.95 due to the growth in DeFi and involvement of major institutional investors. As of now, the LINK token has a price of $24.95, a market cap of $16.82 billion, and a 24h volume of over $1.15 billion.
The success of Chainlink's milestones often leads to increased investor confidence and demand for the LINK token. The increase in TVS from approximately $38 billion in 2021 to a projected $100 billion by 2025 signifies a two-fold growth.
Despite competition from networks like Band Protocol and Pyth Network, Chainlink maintains a first-mover advantage and institutional validity. Its well-developed infrastructure and partnerships with governments, banks, and corporations for modernizing data transparency and automating financial systems further solidify its position in the DeFi landscape.
In conclusion, Chainlink's achievement of $100 billion in Total Value Secured marks a significant step forward in the integration of decentralized finance with traditional finance. As the demand for secure, reliable, and transparent data solutions continues to grow, Chainlink is well-positioned to lead the way.
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