• Chainlink (LINK) is used by almost every other Dapp in the market to provide quality and reliable price feeds.
• The tokenization industry is expected to run on the Chainlink network to access private investors.

The global economy is fast transforming to the digital era as the demand for automation, transparency, and interoperability transcends the traditional international borders. Already, digital assets have been used to fight against disasters including climate and war.

Currently capped at around $1.17 trillion, the crypto market has significantly changed the perception of money and investing to most people. As a result, global commodities, mutual funds, and fixed-income products are likely to get tokenized in the coming years to reach more investors.

According to research conducted by Northern Trust and HSBC earlier this year, approximately 5 to 10 percent of all global assets will be tokenized in the next seven years. Notably, global assets run in hundreds of trillion with the debts topping hundreds more. As a result, the tokenization industry through blockchain technology is expected to gain more traction over the coming years.

Chainlink and Tokenization Industry

Chainlink is used by most of the decentralized financial platforms in providing quality price feeds to ensure stable data for the users. The tokenization of global assets is expected to tap into the fast-growing decentralized financial market (DeFi). As a result, the Chainlink ecosystem could significantly benefit from the direct tokenization of global assets through its native token LINK.

Notably, the more DeFi platforms use the Chainlink data feeds at scale, the more value for LINK is derived from increased demand.

Chainlink has a fully diluted valuation of about $6.1 billion with hundreds of thousands of holders globally. The Chainlink ecosystem also significantly benefits from the growing derivatives market where cryptocurrency speculation is most profitable. In the past 24 hours, Chainlink (LINK) reported a traded volume of about $197 million and a total liquidation of about $6.17k.

Currently, most developers can easily access the Chinalink APIs thus simplifying the development of decentralized applications. Before the establishment of Chainlink, Dapp developers in the crypto community had a rough time gathering quality and reliable price feeds.

With quality price feeds, Dapp developers can scale their access to tokenized global assets for private investors. Moreover, there are many sectors of the global economy including real estate, which is estimated to be over $30 trillion.

According to KPMG, “tokenization is ideal for owners of a single asset or a small portfolio of assets, due to the significant reduction of time and cost in offering investors the right to participate in fractional ownership and subsequent secondary trading.”

Market Outlook and Price Action

The crypto market is currently undergoing rapid changes amid global regulatory scrutiny. Already, some jurisdictions have enacted crypto-friendly policies – including Europe, some African countries, and also in Asia – to attract international and local investors. However, the case is different in the United States, with the Biden administration standing firm against most crypto firms like Binance and Coinbase Global. 

As a result, Chainlink as with the rest of the crypto market may have to wait until clear regulatory scope is achieved in the United States before future bull markets.