Bank of America names Chainlink as one of the drivers of TVL growth in the DeFi sector

Chainlink’s decentralized oracle network could accelerate blockchain adoption in finance, insurance, supply chains, and gaming and gambling projects. This is stated in a Bank of America (BofA) analytical report, CoinDesk writes.

In the view of BofA analysts, Chainlink is one of the main drivers of growth in DeFi’s total value locked (TVL).

“Adoption and growth of DeFi [in 2021] were driven by the ability of hybrid smart contracts, or self-executing and tamper-resistant digital agreements, to provide through oracle nodes reliable and secure access to real-world data, such as market prices, time of day, weather and GPS coordinates,” the report says.

According to DeFi Llama, despite a downturn in the crypto market, the DeFi sector’s TVL at the time of writing stands at $207.97 billion. This is 18% below the all-time high reached in December 2021.

Chainlink is the largest oracle network — it accounts for over 59% of the sector’s total TVL ($53.59 billion). Over the last year its value has grown by 188%.

According to BofA, the Chainlink network is used by more than 1,100 projects. Around 800 companies have launched nodes to monetize their data, including Associated Press, Swisscom and AccuWeather.

According to CoinGecko, at the time of writing the native Chainlink token (LINK) trades near $16.64, well below the May high of $52.70.

In December 2021, the staking service Lido integrated the Chainlink Price Feed for the stETH token.

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