DEEP DIVE CHAINLINK
$LINK
Large Cap
Bullish catalysts:
• Industry standard oracle
• Chainlink Staking
• Chainlink economics 2.0
Risks/ Bearish:
• Tokenomics & revenue capture
• Sell pressure from team
Chainlink has the potential to become the Google of Crypto.
1. Overview
2. Use Case
3. Adoption
4. Revenue
5. Tokenomics
6. Treasury
7. Governance
8. Team & Investors
9. Competitors
10. Risks & Audits
11. Summary
Overview
1. Chainlink is a decentralised oracle network that connects smart contracts to the real world.
It's infrastructure is widely adopted and used for:
• Price feeds
• Data feeds
• Proof of reserves
• Smart contract automation
• Veri able on-chain randomness (VRF)
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Use case
2. Chainlink is widely utilized across various industries, including:
• Financial services
• DeFi
• Gaming
• NFT collectibles
• Climate markets
• Enterprise
• Insurance
It is among a handful of crypto projects that are critical for a robust and decentralized future.
The launch of CCIP has been a game-changer for Chainlink, enabling seamless transfer of data
and value between existing systems and both public and private blockchains.
The adoption of CCIP continues to surge:
• Base chain
• ANZ/ SWIFT
• Vodafone
• DTCC
• A ne Pass NFTs
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Adoption
The current Total Value Secured (TVS) using Chainlink oracles stands at $11.3b (across 348
protocols).
Chainlink is the dominant and most widely used oracle, capturing over 46% of the market share.
Other notable oracles in the space include WINkLink, Chronical, Pyth, and TWAP.
Revenue
Chainlink accrues fees and rewards through several methods:
• CCIP
• Keepers
• Requests
• VRF V1
• VRF V2
In the past 30d, Chainlink has generated:
• $180k in fees
• $111k in revenue
This places it at the top among other oracles and 71st overall according to DeFiLlama.
Tokenomics
The $LINK token is used within the network for the following components:
• Node operator fees
• Implicit staking
• Explicit staking
The recently released Chainlink 2.0 aims to create a new era of growth through:
• Chainlink Staking
• BUILD Program
• SCALE Program
These are the current supply stats:
• Circulating supply = 556.8m
• Max supply = 1b
• Market cap = $6.1b
• FDV = $10.9b
• Market cap/ FDV = 0.56
Treasury
Chainlink has allocated team tokens, which make up 30% of the total supply, to fund
development.
Based on current prices:
• $72m $LINK
• $800m USD
According to De Llama, this would position it as the fth largest in terms of Treasury value.
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A substantial war chest.
Governance
Governance is facilitated through validation, which monitors on-chain Oracle behavior and helps
users choose oracles.
Chainlink products are also widely used by other DeFi projects to assist in their own decentralised
governance.
Team & Investors
The project was founded in 2014 by
@SergeyNazarov and Steve Ellis.
Chainlink Labs has since expanded to employ over 400 individuals.
To date, the project has successfully raised $32M in funding through four rounds.
Competitors
Chainlink is the market-leading oracle solution, enjoying a signi cant rst-mover advantage and
dominant market share (46% of TVS).
Considering the team's continuous growth and ecosystem development, I don't anticipate this
changing anytime soon.
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Risks & Audit
The codebase and smart contracts have undergone multiple audits throughout the years.
As per the CRC, Chainlink has been assigned a 2/5 rating in its securities framework.
A score of 1/5 indicates that it is least likely to be considered a security under the Howey test.
Summary
Upcoming bullish catalysts:
• CCIP
• Chainlink staking
• Economics 2.0
• Institutional adoption
• Ecosystem expanding
• Market conditions improving
Overall weighted score = 8.78
