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Sunday, June 23, 2024

The Cardano-Chainlink partnership: what does it mean for alts?

The news broke during the Cardano Summit last weekend. Input Output , the company behind the Cardano blockchain has claimed to have entered into a partnership with the Oracle Chainlink network . This collaboration promises significant support to programmers who develop smart contracts on the Cardano blockchain . The DeFi space will therefore derive tangible and intangible benefits from it. The point in this article!

A contract that benefits both parties

According to the official announcement, developers who use blockchain will be able to integrate real-time data from Chainlink into their smart contracts. The functions of these contracts would then be more intuitive and more interesting . Basically, they only work with data present on the blockchain.

Chainlink’s oracles will make it possible to work, this time, with external data , which will be much more advantageous. So think about data on sports for prediction matches, on weather conditions for parametric insurance products or on random data for games that can now be exploited! (Also Check: Cosmos (ATOM) vs Solana (SOL): which has more potential?)

Chainlink has established itself as one of the best reference oracle solution providers in the space. A host of smart contract developers have already built their DeFi products with the updated data from this network. Cardano (ADA) therefore joins the elite. However, are these collaborations beneficial?

What is the situation of the HODLers?

The HODLers’ situation is hardly encouraging as of this writing. ITB data showed that only about half of them were in profit. During this time, the other half suffered losses or was in a neutral position, that is, without gain or loss.

However, the HODLers did not surrender; their tenacity paid off, as the price and profitability eventually increased over the following months. This situation is similar, in many ways, to what happened last year. The chances that the same result will occur are therefore very high.

Incidentally, it should be noted that the average size of LNK transactions is experiencing a remarkable increase. The last day saw the price hike by 5% . Conversely, the trade balance was down right now, indicating the movement of tokens to private wallets and cold storage. (Also Read: “I don’t care about Bitcoin” say CEO of J P Morgan Jamie Dimon)

Currently, the relationship between network value and Chainlink transactions appears to be healthy. However, this ratio is quite far from the rally period of November-December of last year. This generally means that there is still room for improvement . This margin will increase with the evolution of the activity of the Chainlink network .

All prospects tend to improve the current situation. If it were to occur, the behavior of market participants, the state of the network and the partnership would have a positive impact on the price of LINK.

Cardano-Chainlink is a new partnership that will revolutionize the world of cryptocurrencies in many ways. It remains to be seen whether this project will go far and what the real implications will be in the lives of clients of both companies.

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