Chainlink data feeds go live on Polygon zkEVM, MATIC price eyes likely recovery
- Chainlink’s data feeds became available on Polygon’s Proof-of-Stake chain on Friday.
- Chainlink’s data solution will power Polygon-based dApps, connecting them to the bank blockchain ecosystem.
- MATIC price eyes recovery as developments in Polygon are likely to boost the token’s adoption.
The data feeds from Chainlink, a decentralized oracle blockchain network, became available on Friday on Polygon’s chain, enabling decentralized finance (DeFi) applications to have access to the emerging bank blockchain ecosystem. Large protocols like AAVE use Chainlink, and the data feeds network secures 85 to 90% of the available liquidity, according to Polygon co-founder Sandeep Nailwal.
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Polygon announces integration of Chainlink data feeds
Polygon co-founder Sandeep Nailwal informed on X (formerly Twitter) that Chainlink’s data feeds are now live on Polygon’s Proof-of-Stake chain. The combination of the data feeds from the blockchain oracle network with the Ethereum scaling solution marks a new era for DeFi, according to Nailwal.
.@chainlink has been with @0xPolygon ecosystem side-by-side ever since Matic Network became Polygon in Feb. 2021. And what a journey it has been for both communities! On Polygon PoS, Chainlink is now used by the largest protocols like Aave and Gains and secures 85-90% of the… https://t.co/61lg61UdsK
— Sandeep Nailwal | sandeep. polygon (@sandeepnailwal) December 15, 2023
Polygon powers Zero-Knowledge ZK Rollups, a Layer 2 scaling solution that moves computation off-chain and stores data on-chain on a Layer 1, boosting speed and lowering user costs. These DeFi applications could benefit from Chainlink’s data feeds and the connection with the bank blockchain ecosystem.
Data feeds are also likely to power a new class of advanced DeFi applications on Polygon, like tokenized Real World Assets (RWAs). Nailwal noted that trillions of dollars could move on chain, and Chainlink’s Cross Chain Interoperability Protocol (CCIP) technology will connect DeFi and dApps to the banking system. It's important to note that CCIP is already being explored by financial institutions and infrastructures like Swift, DTCC, ANZ and others. Chainlink’s use makes the connection between Polygon’s dApps and the banking economy clear.
This integration could drive Polygon adoption, bringing more users to the Ethereum scaling solution. Polygon’s native token MATIC stands to benefit from rising adoption of the chain.
MATIC price is $0.8604 on Binance at the time of writing. The Ethereum scaling token is down nearly 3% in the last 24 hours, but its price has increased 2% compared to a week ago. The scaling solution token could benefit from developments in the Polygon ecosystem, likely contributing to further upside.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
