Responding to the Latest Integration: zkEVM and Chainlink’s Dynamic Interaction

Polygon zkEVM and Chainlink Integration

Recently, Polygon’s zkEVM integrated with Chainlink, introducing new features. Despite an increase in zkEVM’s TVL, Chainlink’s LINK experienced a drop in price.

Details on Polygon and Chainlink Integration

Polygon’s zkEVM made a significant integration with Chainlink, highlighted by a blog post from Polygon. Sanadeep Nailwal, co-founder of Polygon, shared the benefits of this integration on X and emphasized its potential impact on the DeFi space.

According to Sandeep Nailwal, the combination of Chainlink’s solution and Polygon zkEVM’s ZK rollup will be a game-changer for DeFi. Polygon’s blog post outlined the advantages for developers, enabling them to easily access external price data for building effective liquidity protocols and advanced decentralized exchanges.

“This functionality is set to unlock the deployment of several significant DeFi protocols on Polygon zkEVM early next year.” – Marc Borion, CEO of Polygon Labs

Despite the positive integration news, key network statistics for zkEVM failed to show significant improvement.

Integration Impact on zkEVM’s DeFi Ecosystem

Analysis of Artemis’ data by AMBCrypto revealed a continuous rise in Polygon zkEVM’s Total Value Locked (TVL) for several weeks. However, the network’s activity experienced a decline, with daily active addresses and transactions decreasing.

Chainlink’s Performance Amid Integration

Contrary to zkEVM’s growth in the DeFi space, Chainlink did not mirror the same trend in its price performance. CoinMarketCap reported a nearly 15% decrease in LINK’s price over the last seven days, with LINK trading at $14.50 and a market capitalization exceeding $8.2 billion at the time of writing.

LINK’s trading volume also witnessed a decline in the last 24 hours, indicating reduced investor activity. Santiment’s data revealed a surge in LINK’s supply on exchanges, coupled with a drop in its supply outside of exchanges, suggesting a significant sell-off. Despite the bearish signals, Chainlink’s open interest slightly decreased, hinting at the possibility of a trend reversal.

Leave a Reply

Your email address will not be published. Required fields are marked *