A crypto investor and influencer, Lark Davis said that Chainlink (LINK) has 3 competitors with the potential for increasing demand and potential profits of up to 100x. As the number one Oracle service provider, LINK is very important to the DeFi ecosystem.
In Ethereum DeFi, for example, decentralized applications (dApps) require off-chain information to perform certain functions. The Chainlink service allows safe and reliable information to enter the blockchain.
Davis's first competitor is the Cosmos-based Band Protocol. The band is the biggest competitor due to its partnerships with other blockchains with a market cap of $ 150 million.
The band has partnered with many cryptos, such as TRON (TRX), Fantom (FTM), Nervos (CKB), Binance Smart Chain, dForce (DF), ICON (ICX), Elrond (EGLD), Gravity, Waves (WAVES) and many more.
The second LINK competitor, according to Davis, is Tellor (TRB). Unlike the band, Tellor has an Ethereum-based oracle service that uses the Proof-of-Work consensus protocol. This method makes the miner responsible for gathering information before sending the smart contract on the blockchain.
According to Davis, despite Tellor's $ 33 million market cap, there is plenty of room to grow and turn a profit. Tellor's downside is the lack of cooperation with blockchain, but recently there was a big performance boost.
“The Tellor v2 update was actually just released and resulted in a huge performance increase in on-chain data completion speed. More data points per block are also added. We have the better security parameters brought in as well as the burning cost of the token, which is huge for long-term price appreciation for Tellor, "Davis said.
The next LINK competitor is Decentralized Information Asset (DIA). Built as a DeFi-oriented platform, DIA allows players to share reliable information. Davis describes it as the 'Wikipedia of Oracles'.
It has a market cap of $ 37 million and a partnership with Elrond and provides data for some of the major protocols on Ethereum DeFi, such as Aave.
Davis says, "DIA token holders manage, acquire, and validate data internally through crypto economic incentives and stake governance tokens."
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Note: This article is not investment advice.
