Due to a significant halt in price updating, Chainlink has caused the loss of millions for multiple platforms and protocols.
Chainlink’s Recent Failure with Price Feeds
Chainlink, a non-traditional cryptocurrency has quite an impressive number of backers leading it to sustain a market capitalization of more than $3Billion in value, all because of its features that are vital for many protocols and platforms to operate. One of those features is the Chainlink price feed that keeps track of prices of different cryptos across the board and as mentioned before, is used by several decentralized applications (DApps) and network protocols, who need swift price updates to run.
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This feature became so popular that Chainlink managed to host more than a thousand projects in its ecosystem since 2021. The main issue arrived when Chainlink failed to update the prices regarding the recently massive drop for both TerraUSD and LUNA which has sparked major panic across the space. The major drop of both TerraUSD and LUNA caused loss to many investors, protocols, and platforms around the world.
Since Chainlink failed to update the prices, it caused further significant damage to protocols such as the Venus Protocol which lost more than $11Million dollars to a price exploit. Venus Protocol which had been relying on Chainlink’s price feed saw the price of LUNA to be $0.107, however the actual price had already fallen to a mere $0.01. Seeing the opportunity, exploiters submitted around 230Million LUNA and managed to receive a return of around $13.5Million, leading to the protocol’s deferment.
LINK Recording New Peaks
Despite all these events, holders of Chainlink seemed to not be worried about all the chaos that unfolded in the past few days and surprisingly, these holders were seen to be the most active during this time, after significantly holding back since the past month. According to the data taken from IntotheBlock, the LINK token managed to gain a value of $7.1 with more than 5million active addresses, which is seen as the highest peak since the month of January this year.
LINK has also managed to host more than eight thousand transactions, also recorded to be the largest since October of last year, leading to an impressive transactional volume metric of more than $300Million. Many experts have been baffled by LINKs performance, despite it being a non-traditional currency.