- Arbitrum developers could run offchain programs on Chainlink.
- Chainlink’s volume dropped while Arbitrum jumped.
Decentralized computing platform Chain link [LINK] has announced its integration with the Arbitration [ARB] Mainnet, AMBCrypto can confirm this. The project announced this in an update issued on January 25.
According to the information AMBCrypto received, Chainlink Function would now work on Arbitrum one. This allows Arbitrum ecosystem developers to connect to any offchain device or system.
This is because Chainlink Functions act as a decentralized computing runtime useful for testing, simulating, and executing custom offchain logic for smart contracts.
Development takes center stage while the market dumps
Regarding the development, Johann Eid, Chief Business Officer of Chainlink Labs, said that Arbitrum plays an important role in the Ethereum [ETH] ecosystem was the rode it continued with integration. Eid said:
“Making Functions available to Arbitrum users is about connecting Web2 and Web3 developers and bridging the gap to enable shared collaboration, growth and a shared sense of community.”
Then continue with AMBCrypto watched in the development activity on both sides. At press time, Santiment data showed that development activity on Arbitrum and Chainlink has grown significantly.
Source: Santiment
The growth here was proof that the developers of both projects put a lot of work into keeping the network running smoothly. If this statistic remains up impressive levels, it could serve as a bullish signal for both Chainlink and Arbitrum.
While this may not impact the price, the development activity could help attract new users to the networks.
However, there is no guarantee that the value will continue to rise on either side. At some point, upgrades would slow down and development activity would decrease.
It’s even at the end of Chainlink
Another metric we examined was the Herfindahl Index. But this time the focus was only on Chainlink. The Herfindahl Index serves as a benchmark for the decentralization of a network.
When the score is high, this indicates a high supply concentration and the distribution is not even. A small Herfindahl Index score suggests evenly distributed funds across addresses.
Source: Glassnode
At the time of writing, the metric was 0.0039. This score implies that distribution on the Chainlink network was relatively even.
In terms of volume, data on chain showed that Arbitrum had risen from its low point. As of January 25, Arbitrum’s volume was 504.22 million. But press time data showed that the number had risen to 508.72 million.
Source: Santiment
How many Worth 1,10,100 LINKs today?
However, Chainlink experienced an opposite movement per volume. Between January 25 and the time of writing, volume dropped.
Chainlink’s volume decline indicates fewer LINK tokens are involved in transactions, while ARB usage has increased.