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RECAP: CHAINLINK - SHOULD I BUY?

RECAP: CHAINLINK - SHOULD I BUY?

CHAINLINK: Should I Buy? The Ultimate Deep Dive

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InvestAnswers
Oct 06, 2023
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NUGGETS OF ALPHA

  • LINK can bridge on-chain with real-world data systems

  • LINK is presently the most widely adopted oracle service in crypto

  • The number of developers is small compared to other chains of LINK’s size

  • LINK has slowed to a ~7% inflation rate from a ~31% in mid-2021

  • LINK ranks fifth in the IA crypto compendium among data management projects

  • The number of transactions is down from 24K in 2020 to ~4,190

  • The active addresses are down from 640K total addresses to 2,560 daily users

  • The historical average of the LINK ETH ratio was 0.02, and now it is .0047

  • The traditional markets would value LINK at $1.8M at the 20x P/S ratio based on current revenue


There are three things I know well:

  1. Technology

  2. Finance

  3. Valuations

Using data, I analyze if an asset is worth buying, which is the mission behind the Should I Buy videos. In this study, we will look at data that that you may have never seen.


Our valuation process consists of 10 categories. We will take Chainlink (LINK) through these ten separate evaluations to discover how it ranks and what industry it disrupts. I will also share price predictions from six analysts near the conclusion.


Nazarov's vision is to empower smart contracts by incorporating real-world data into the entire process.


  • Real-world data examples would include gaming, insurance, etc.

  • LINK can bridge on-chain with real-world data systems


Most people have heard about LINK working with the payments world like SWIFT, VISA, Mastercard, and PayPal by connecting them to Web3 chains like Ethereum. Everything is moving towards the blockchain and will eventually be tokenized.


  • LINK is presently the most widely adopted oracle service in crypto

  • The chain helps to ensure accuracy and reliability so that no funny games are played while policing the contracts between parties

  • Everything LINK builds is a function of reputation and trust, which is critical to all things oracle


LINK ranks number one among all the current crypto data management solution players. Per the crypto market cap ranking, LINK currently sits at number 19.

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