Chainlink and its oracle network went live on the Binance Smart Chain (BSC) yesterday, with DODO being the first protocol to utilize Chainlink’s data.
All projects and developers on the BSC network now have access to Chainlink’s oracle products such as price feeds. If it gains enough traction, the project may become the leading solution on Binance’s network as well. The news was announced in a blog post on December 10.
The mainnet version of the Binance Smart Chain from now on uses Chainlink as its ‘recommended oracle solution’ for developers. Binance’s ‘CeFi’ sector now effectively has access to Chainlink’s DeFi data. In fact, the BSC will have no interaction with the Ethereum network when fetching data from oracles.
According to the blog post, BSC already offers a number of Chainlink Price Feeds that can be integrated into dApps. By doing so, developers can enable functions like loans, derivatives, stablecoin collateralization, reserve verification, and so on.
We can find the first instance of Chainlink within BSC on DODO, a capital-efficient liquidity platform. The project uses Chainlink to provide prices for cryptocurrencies, as well as make low-slippage token swaps more cost-effective.
The DODO team notes that it has announced a partnership with the oracle provider as far back as late August. Noting the performance of its Oracle-based proactive market maker (PMM), DODO claims that it offers one of the best liquidity pools out of all decentralized exchanges. Moreover, the team happily states that it has accomplished this feat thanks to the unique oracle design of Chainlink.
Binance announced that it hosts the Verifiable Random Function (VRF) feature as well. Chainlink’s new feature will help the smart contract ecosystem with gaining access to secure and provably fair blockchain-based randomness. In the future, we may see a rise of rewards and games protocols on the Binance Smart Chain thanks to Chainlink.
Bitcoin dump stops Chainlink’s bullish momentum
2020 has shown that Chainlink has no problems with delivering accurate and safe on-chain data. With numerous partnerships and integrations achieved in this year alone, the oracle platform is more bullish than ever. In fact, we have reported in November that fundamental analysis indicates new bullish momentum for Chainlink.
Since the time that IntoTheBlock shared news of Chainlink’s bullish future, the LINK token increased from $11.35 to $14.2 in less than a week. However, the recent trend reversal that set a new bearish market environment has prevented LINK from pushing forward.
At the time of writing, Chainlink reached support at $11.7. However, many experts believe that the asset could go down further as Bitcoin’s unstable price movement may lead to new local lows. In that case, LINK may go as far down as $10.25, a support level established at the start of November. However, the asset’s ultimate local bottom depends entirely on how Bitcoin behaves in the next few days.
If the leading cryptocurrency finds decent support between $16,000 and $16,800 altcoins like LINK will not suffer as much. But if Bitcoin tumbles down even more the market will look far uglier. For LINK, a BTC price between $10,000 and $12,000 means at least correction until $8. It may be too soon to tell what can happen next, but most investors have surely hedged and prepared for the worst.