A crypto analyst believes the smart contract oracle network Chainlink is set to “shock the crypto world” next year.
In a recent YouTube video, popular crypto analyst Lark Davis presented an optimistic forecast for the blockchain oracle network Chainlink (LINK) in 2024. While acknowledging the inherent risks of investing in cryptocurrencies, Davis — who discloses owning a significant amount of LINK — believes the project remains undervalued relative to its technology and partnerships.
Chainlink is going to shock the crypto world in 2024. […] How more people have not woken up to what has happened with Chainlink boggles the mind.
– Lark Davis
The analyst cited growing interest in Chainlink from institutional investors, evidenced by the Grayscale Chainlink Trust trading at premiums over 200% to the spot LINK price. He believes such interest stems from recognizing that Chainlink provides essential infrastructure across blockchains and crypto applications.
Specifically, Davis highlighted Chainlink’s new cross-chain interoperability protocol (CCIP) as a major development. He explained that by enabling seamless transactions between public blockchains and private networks, CCIP could unlock trillions in real-world asset value.
To that end, Davis noted nascent CCIP integrations by financial services giants DTCC, Euroclear, and SWIFT, which clear quadrillions in trades annually.
“These are the biggest and most important financial services companies in the freaking world,” he remarked.
While acknowledging potential competitors, Davis believes Chainlink’s first-mover advantage and expansive capabilities make it difficult to displace. He predicted continuing CCIP rollouts and major announcements in 2024.
Chainlink is far more than just Oracles.
– Lark Davis
What are oracles?
An oracle in the blockchain context refers to a third-party information source that provides external data to blockchains. Since blockchains cannot access external data independently, oracles are critical bridges between off-chain data and on-chain smart contracts.
For example, a decentralized finance lending platform may need real-time price feeds of crypto assets to determine loan-to-value ratios. An oracle would provide these continually updated prices to the defi platform from external crypto exchanges. The lending protocol relies on the oracle to supply accurate and timely asset price data to function properly.
Source: https://crypto.news/analyst-predicts-shocking-gains-for-chainlink-in-2024/