Journalist
Posted:
- Polygon has posted a blog highlighting details about this latest integration.
- LINK fell 14% and selling pressure was high.
Polygon [MATIC] zkEVM recently made a major integration with Chain link [LINK] that can increase the range and possibilities of the blockchain.
Sanadeep Nailwal, co-founder of Polygon, even went to X and posted a tweet highlighting these benefits. However, despite this integration, zkEVM’s key network metrics have not increased.
Details about Polygon and Chainlink integration
According to Sandeep Nailwal, the combination of LINK’s solution and Polygon zkEVM’s ZK rollup will be a game changer for DeFi.
.@chain link has been along @0xPolygon ecosystem side by side since Matic Network became Polygon in February 2021. And what a journey it has been for both communities! On Polygon PoS, Chainlink is now used by the largest protocols such as Aave and Gains and secures 85-90% of… https://t.co/61lg61UdsK
—Sandeep Nailwal | sand deep. polygon 💜 (@sandeepnailwal) December 15, 2023
Polygon also posted one blogging noting the benefits for developers. The integration allows DeFi developers to easily tap into external price data to build and launch highly effective liquidity protocols, advanced decentralized exchanges, and more.
Marc Borion, CEO of Polygon Labs, said:
“This functionality will unlock the implementation of several key DeFi protocols on Polygon zkEVM early next year.”
It was interesting to see that as developers worked on this integration, zkEVM’s DeFi ecosystem also started to grow.
According to AMBCrypto’s analysis of Artemis’ factsPolygon zkEVM‘s TVL has been on the rise for a number of weeks.
As the DeFi space grew, network activity declined. This was evident from the fact that daily active addresses and transactions began to decrease.
Source: Artemis
Chainlink does not profit
While zkEVM grew in DeFi, Chainlink did not follow the same trend on the pricing front. According to CoinMarketCapLINK is down almost 15% over the past seven days.
At the time of writing, LINK was trading at $14.50 with a market cap of over $8.2 billion.
The token’s trading volume also declined over the past 24 hours, meaning investors were not actively trading CLUTCH.
To better understand the scenario, AMBCrypto took a look at Santiment’s data. We discovered that LINK’s supply on the exchanges has seen a huge increase in the recent past.
This was accompanied by a drop in off-exchange supply, indicating that there was a massive sell-off. Moreover, the MVRV ratio also remained low, which is a typical bearish signal.
Source: Santiment
Is your portfolio green? look at the LINK Profit Calculator
Nevertheless, the good news was that Chainlink’s open interest fell slightly along with the price.
A decline in the measure generally indicates a trend reversal, indicating that there was an opportunity for it to occur CLUTCH registering greens on the price chart.
Source: Coinglass