Blockchain oracle provider Chainlink has been busy building during the bear market. However, its native LINK asset has failed to hold a key price level.
The leading provider of blockchain data oracles, Chainlink, has delved into dynamic NFTs (nonfungible tokens). It believes they will be the next evolution of token technology just as the internet evolved from static pages.
A dynamic NFT (dNFT) can be described as an NFT with encoded smart contract logic. Furthermore, this enables it to change its metadata based on external conditions automatically.
Static NFTs, which are the majority of those circulating today, have fixed metadata once they are minted. Dynamic NFTs with changeable metadata can be used for gaming items, real estate, and tokenized real-world assets.
Chainlink Evolving Into the ‘Google of Web3’
Chainlink aims to become the primary provider of off-chain data and computation services that can be used as inputs to trigger dNFT updates.
“As the dNFT ecosystem expands and NFTs become more heavily integrated with the real world, Chainlink acts as a bridge between the two disconnected worlds, enabling automated, decentralized, and engaging dNFT processes to be built.”
The network also aims to become the leading data feed provider for the decentralized finance (DeFi) ecosystem. Furthermore, Chainlink price feeds have several advantages, as noted in a tweet on Jan. 30.
They have multiple layers of decentralization, hyper-reliable node operators, and a multi-layered defense-in-depth approach. Additionally, they are blockchain-agnostic architecture, operate in an economy-of-scale, and have long-term sustainability.
The narratives and sentiment for Chainlink are still strong despite the bear market. Last week, co-founder Sergey Nazarov said:
“I see Chainlink going far beyond data, into key off-chain computations and any/all cross-chain interactions. Value capture and adapting to top user needs are also key goals.”
However, token holders may have to wait a little longer until there is any serious market action with LINK.
LINK prices have fallen below the psychological $7 level during the early hours of Jan. 31.
At the time of press, LINK was trading at $6.97 following a 5.2% decline on the day as markets pulled back.
LINK bounced off $6.83 a few hours ago and was heading back toward $7 at the time of writing. It has gained 25% over the past month, but the rally appears to be running out of steam. Furthermore, LINK is still down 87% from its peak price of $52.70 in May 2021.
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