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- one of the leading centralized crypto exchanges Coinbase Global announced that it will be running Chainlink oracle nodes.
- LINK and COIN prices dropped nearly 3 percent on Friday despite the partnership announcement.
The growth of the Web3 industry is highly pegged to the provision of quality and reliable data. The Chainlink ecosystem has gained huge recognition due to its ability to provide Web3 protocols with reliable and quality data through a decentralized network. Moreover, dozens of top Web3 protocols on many blockchains rely on Chainlink price feeds to either provide lending or trading services.
Some of the top Web3 protocols that have integrated with Chainlink data oracles include AAVE, Synthetix, Arbol, and T Mobile, among many others.
Chainlink Meets Coinbase Ecosystem
In recent developments, one of the leading centralized crypto exchanges Coinbase Global announced that it will be running Chainlink oracle nodes. Notably, Coinbase Cloud joined the Chainlink network as a node operator to help onboard quality data to the Web3 industry. Furthermore, Coinbase Cloud is multi-region and available anytime a smart contract on the Chainlink network makes a request.
.@coinbasecloud has joined the #Chainlink Network as a node operator to help bring high-quality data to #Web3.
Explore how Coinbase Cloud’s multi-region infrastructure & experience running high-performance validators can help grow the multi-chain ecosystem. https://t.co/Ww0jHsHUgu pic.twitter.com/gap5LgL4wV
— Chainlink (@chainlink) May 18, 2023
With Chainlink and Coinbase working together, decentralized application developers will have a much easier time fetching reliable data for their users. Moreover, the Chainlink network helps create a much-needed bridge between real-world data and web3 via decentralized Oracle networks.
“Chainlink is helping grow the web3 ecosystem by providing a bridge between web2 and web3. Access to timely, reliable, and accurate data is tablestakes for web3 applications that exist today, and for new use cases that will be built in the future. We are excited to work with Chainlink to support this critical service,” Coinbase noted.
Currently, Chainlink is available in more than 14 blockchains with each decentralized oracle network consisting of multiple node operators and data sources to enhance decentralization and thus prevent single points failures.
With Coinbase on board the Chainlink wagon, the provision of timely price feeds is guaranteed by a time-tested protocol.
Market Outlook
The strategic partnership between Chainlink and Coinbase is meant to open up the adoption of Web3 reliably and securely. As a result, the economic implications of the partnership are likely to be felt in the future rather than immediately. Moreover, Chainlink’s (LINK) price was down approximately 2.6 percent in the past 24 hours to trade around $6.49 on Friday.
According to our latest price oracles, Chainlink (LINK) had a market capitalization of about $3.35 billion and a 24-hour traded volume of approximately $129 million on Friday. Down approximately 87 percent from its ATH, $52.70, the Chainlink army understands the importance of the increased partnerships in future bull markets.
Similarly, Coinbase shares dropped approximately 3 percent on Friday to trade around $58.43. The crypto exchange with a market capitalization of about $14.14 billion, has significantly increased its quest for globalization amid increased crypto regulatory scrutiny in the United States.
