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- With Chainlink data feeds available on the Polygon zkEVM, web3 developers can now build advanced DeFi applications that leverage industry-leading data solutions.
- The strategic collaboration between Chainlink and Polygon fuels the ongoing bullish outlook for the respective native crypto assets.
The mainstream adoption of web3 protocols, and digital assets is largely dependent on the collaborations between existing blockchains through secure channels. Chainlink (LINK) and Polygon (MATIC) have forged one of the most important partnerships geared towards enabling mass adoption of crypto assets and web3 applications.
According to an announcement by Polygon network, a leading Ethereum-based layer two scaling solution with more than $876 million in total value locked (TVL), the Chainlink data feeds, which include crypto price oracles, are now live on the Polygon zkEVM. As a result, smart contract developers using the Ethereum network through the Polygon zkEVM can tap into the Chainlink data feeds to build reliable decentralized applications (DeFi).
With the integration of Chainlink Data Feeds, DeFi can take the next step on Polygon zkEVM. Chainlink oracles unlock a host of DeFi applications, bringing opportunity for new dApps that truly leverage the unique value propositions of a ZK rollup, including fast finality and robust security,
This functionality is set to unlock the deployment of several significant DeFi protocols on Polygon zkEVM early next year.
Similar sentiments were echoed by Johann Eid, the Chief Business Officer at Chainlink Labs, who added that the Chainlink data provides a security aspect to DeFi developers as their APIs are resistant to downtime, and data manipulation like flash loans.
“Security is a necessity for the long-term vision of any DeFi protocol, and with Chainlink’s robust, time-tested oracle networks now live on Polygon zkEVM, we’re excited to see what gets built,” Eid noted.
Market Implications of Chainlink and Polygon Network’s Partnership
The Chainlink network has grown to a mature ecosystem supporting trillions of dollars in value transactions since its inception. Already, Chainlink data feeds and other products have been integrated by legacy institutions like DTCC, Swift, and the New Zealand Banking Group (ANZ) to enable seamless tokenization of real-world assets. As a result, the collaboration with Polygon zkEVM will help stamp the longevity of Chainlink products in the web3 industry.
Worth noting that Polygon zkEVM has a total value locked of about $21 million and a stablecoins market cap of around $5.86 million. The partnership with Chainlink is expected to significantly grow the development volume in the coming years.
LINK and MATIC Price Action
Following the announcement LINK price has gained about 1 percent in the past 24 hours to trade at $14.
The $15 billion valued altcoin has rallied more than 160 percent since the September bullish breakout but has been consolidating in an ascending triangle that is likely to yield another uptrend in the coming weeks. Meanwhile, the collaboration announcement did not have an immediate positive impact on MATIC, which has dropped about 2.4 percent in the past 24 hours to trade at $0.7634.
Nonetheless, the utility-based altcoin has rallied more than 11 percent in the past two weeks amid the ongoing altcoin recovery.
