Chainlink Data Streams Goes Live On Base, Major Trigger For LINK?

Oracle service provider Chainlink has continued to expand its ecosystem with a recent partnership with the Base Layer 2 protocol. As Chainlink revealed, the partnership involves integrating its data streams and VRF on the Coinbase incubated protocol.

Both Chainlink and Base hold a very strategic position in the Ethereum ecosystem. While the Oracle service protocol is the first in its niche, Base emerged to outpace existing Layer 2 rivals.

Notably, the Coinbase and Chainlink alignment has long been projected. As revealed, deploying the two solutions now makes the entire stack of the Chainlink product suite available on the Base network.

Why Does Base Need Chainlink for Explosive Growth?

Current data from DeFiLlama pegs the Total Value Locked (TVL) for Base at $1.542 billion. Since January, this figure grew from $451 million to its current level, underscoring the massive traction within the Base ecosystem.

This growth trend implies that the Layer 2 network needs reliable data from Oracle for proper aggregation of price feeds. Chainlink is committed to helping it achieve this goal. As described in its announcement, Oracle said its Data Streams solution offers bespoke data provision for the DeFi market.

This tool has proven exceptional in “combining low-latency market data and automated execution to unlock a new generation of ultra-fast and user-friendly high-throughput DeFi products.” Deploying this product will undoubtedly position Base to pursue similar user experiences as many centralized exchanges are known for.

In addition, the Chainlink VRF will help the Base developer in a use case that requires high-speed feedback. As a frequently upgraded Random Number Generator (RNG), the Chainlink VRF can help Base developers in the highly dynamic L2 ecosystem.

The push for market share is unending. Data from L2Beat shows that Base is leading Ethereum, Arbitrum One, and Optimism in the Transaction Per Second (TPS) count. While Base boasts an actual TPS of 46.98, Arbitrum and Ethereum TPS come in at 20.94 and 14.80, respectively.

To maintain this level, Base needed a significant partner, thus informing the partnership.

The Chainlink Benefit

Chainlink is committed to its mission to dominate the data infrastructure scene for the new Web3 world. Despite its extensive reach, Base represents a new world that can drive increased demand for LINK.

Only Chainlink has a native token that can benefit directly from the association in the partnership. To access some of its interoperability features, a LINK is needed. This automatically creates a major buying channel for the token, creating a basis for price growth in the long term.

At the time of writing, the price of LINK is $10.49, and the partnership news likely accounts for its 1.22% uptick. As described in earlier reports, Chainlink has what it takes to retest the $20 price mark in the long term.

Beyond the linkup with Base, the protocol has charted related integration partnerships with other partners, such as Arbitrum and DTCC. For the most optimistic Analysts, the jump in price to $50 in the long term due to this expansion cannot be ruled out.