Polygon zkEVM and Chainlink Integration Transforms DeFi
The Latest Integration of zkEVM and Chainlink
The blockchain platform, Polygon zkEVM, has recently made a significant integration with Chainlink. This integration brings new features and possibilities to the blockchain and could change the game for DeFi (Decentralized Finance).
Details on the Integration of Polygon and Chainlink
The combination of Chainlink’s solution and the ZK-Rollup of Polygon zkEVM will be a game changer for DeFi, according to Sandeep Nailwal, co-founder of Polygon. Chainlink has been by the side of the Polygon ecosystem since February 2021, when the Matic network became Polygon. Chainlink is now used by the largest protocols such as Aave and Gains, securing 85-90% of the transactions.
The Benefits for Developers
The integration allows DeFi developers to easily access external price data to create and launch effective liquidity protocols, advanced decentralized exchanges, and more. Marc Borion, CEO of Polygon Labs, explained that this feature will enable the implementation of several significant DeFi protocols on Polygon zkEVM early next year.
Growth of zkEVM’s DeFi Ecosystem
While the developers were working on this integration, the DeFi ecosystem of zkEVM also started to grow. The TVL (Total Value Locked) of Polygon zkEVM has been increasing for several weeks. However, the network activity dropped, which was reflected in a decrease in daily active addresses and transactions.
Chainlink Does Not Benefit
While zkEVM grew in the DeFi space, Chainlink did not follow the same trend with its price. According to CoinMarketCap, LINK fell by almost 15% in the last seven days. At the time of writing, LINK was trading at a price of $14.50, with a market capitalization of over $8.2 billion. The token’s trading volume also fell in the last 24 hours, suggesting that investors were not actively trading LINK.
Future Prospects
Despite the current situation, there is also good news. The open interest in Chainlink fell slightly along with its price. A decrease in this metric usually indicates a trend reversal, which could suggest that LINK could be back in the green in the future.
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Sources:
– Blog post by Polygon
– Tweet by Sandeep Nailwal
– Data analysis by AMBCrypto
– Price information from CoinMarketCap
– Data analysis by Santiment
– Data analysis by Coinglass
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