- A renowned analyst has stated that the 40% non-circulating supply of Chainlink (LINK) and its relative valuation pose a huge hindrance to its potential price surge.
- The analyst also outlined the incredible institutional adoption of Chainlink and its consistent expansion as major bullish catalysts.
A Decentralized Finance (DeFi) creator and analyst, Jake Pahor, has subjected Chainlink (LINK) to a comprehensive analysis that covers its general overview, its extreme dominance in the ecosystem, its bullish and bearish catalysts, and its value proposition.
The Google of Crypto
According to Pahor, Chainlnk is on course to become the Google of Crypto due to their shared similarities.
Chainlink: More than an Oracle, it’s the Google of crypto. With a robust suite of products, it’s poised for dominance. Can LINK soar in the upcoming bull run? Explore my bull and bear analysis. pic.twitter.com/coDGYrF7Ws— Jake Pahor (@jake_pahor) October 23, 2024
Explaining his point, the analyst stated that Google’s initial operation was centered on the internet search engine. Following the significant growth of its popularity, it expanded into other products including Gmail, Google Meet, Android, YouTube, Ads, Google Cloud, Sheet and Document, etc.
Similarly, Chainlink broke into the scene through its Oracle services but expanded its use cases through the development of several products including price “feeds, data feeds, Proof of Reserve, Cross-Chain Interoperability Protocol (CCIP), Decentralized Oracle Confidentiality (DECO), Fair Sequencing Services (FSS), VRF Subscription Service, Verifiable Random Function (VRF), Automation”, etc.
Of course, Chainlink has a long way to go before achieving the widespread adoption of Google. However, it is one of the most widely used protocols in crypto and is building a strong ecosystem of products
Bullish Indicators
According to Pahor, institutional adoption is the first bullish indicator of Chainlink. Over the past few years, the network has collaborated with several top financial institutions and technological giants including SWIFT, Google Cloud, Vodafone, AWS, Intel, etc.
Pahor also highlighted that the DTCC Smart NAV Pilot could be another bullish indicator. It is important to note that DTCC has collaborated with Chainlink to leverage its CCIP for seamless interoperability. In addition to that, SWIFT and Chainlink have collaborated with Clearstream, Euroclear, BNY Mellon, BNP Paribas, and Citi to explore ways of linking multiple blockchains. According to him, these could increase the bullish momentum of the asset to set a new all-time-high price.
Bearish Catalysts
As part of the factors that could weigh down its price, Pahor pointed out the 40% non-circulating total supply of Chainlink. Secondly, he mentioned that Chainlink faces stiff competition from the likes of Python Network, Band protocol, etc. On top of that, Chainlink’s open-source nature exposes it to vulnerabilities and potential forks.
Adding to this, Pahor outlined that LINK’s underperformance compared to its peers, despite its incredible initiatives, could push investors to find alternatives.
Meanwhile, an analyst identified as Michaël van de Poppe believes that LINK is an opportunity of a lifetime. As we reported, Michael believes that the asset could breach the $152 all-time high and proceed to a new height.
#Chainlink is still consolidating above the crucial resistance and flipping that for support. I think anything between $9-11 is an interesting one to buy into. I mentioned it a few times, but it remains to be an opportunity of a lifetime. pic.twitter.com/3vCTTiYsAe— Michaël van de Poppe (@CryptoMichNL) October 4, 2024
At press time, LINK was trading at $11.35 after declining by 2% in the last 24 hours.
