Chainlink Positioned for Major Gains in Stablecoins and Tokenization Market
The stablecoin and tokenization sectors are growing, driven by pro-crypto regulations from the Trump administration. This trend positions Chainlink (LINK) to benefit significantly.
Potential of Chainlink
- Market expert Miles Deutscher identifies LINK as a promising large-cap investment opportunity.
- Chainlink is set to gain from the institutionalization of cryptocurrency and the rise of stablecoins and real-world assets (RWAs).
- The total value locked in RWAs has increased thirteenfold, from $1 billion to over $13 billion.
- Major players like BlackRock advocate for tokenization, with firms such as Stripe and Circle exploring blockchain solutions.
- Chainlink controls 84% of the oracle market, crucial for valuing tokenized assets.
Revenue Model and Sustainability
- Chainlink generates revenue through on-chain fees and corporate partnerships.
- This model supports buybacks of LINK tokens, enhancing sustainability.
- All revenues convert into LINK tokens, deposited into a strategic treasury.
- Users staking LINK earn a yield of approximately 4.32%, creating a supply sink.
- Increased adoption leads to higher revenues, further locking LINK and enhancing security.
- Deutscher compares LINK favorably against XRP, citing its greater traction among institutions.
- Chainlink secures $84.65 billion, compared to XRP’s $85 million in DeFi locked value.
- XRP's market cap is about twelve times larger than LINK's, highlighting LINK's potential value.
- LINK is currently trading at $22, having broken above the $20 resistance level.