Chainlink’s Cross Chain Interoperability Protocol (CCIP), a platform enabling data transfer across different blockchains, has experienced a significant revenue jump in recent months. This growth is attributed to increased adoption of the technology.
According to Dune Analytics, CCIP fees have skyrocketed from roughly $61,000 in total for January to over $171,000 within the first two weeks of March, reflecting a 180% increase. The total cumulative revenue for CCIP since its launch in July 2023 has reached $377,724.
Chainlink staking technology providers LinkPool, creators of the Dune dashboard tracking CCIP’s progress, commented that the growth rate is “robust and very much in line with expectations.” Prominent figures in the cryptocurrency space, like crypto trader “Satoshi Flipper” and YouTuber Kyle Chassé, have also highlighted the surge in CCIP fees.
ChainLinkGod, a Chainlink community ambassador, clarified that CCIP fees cover the gas costs associated with completing transactions on the receiving blockchain and the premium paid to providers offering CCIP services.
CCIP has actively pursued integrations to expand its user base. Recent partnerships include the Metis layer-2 network, auditing platform Code4rena, stablecoin issuer Circle, and South Korean game developer Wemade. Notably, Chainlink collaborated with SWIFT in 2022 on a proof-of-concept project for secure token transfers.
It’s important to note that CCIP is just one revenue stream for Chainlink. The network also generates income from fees paid by network node operators, a small portion of LINK staking rewards, network revenue sharing, and sales of enterprise products. According to Dune Analytics, Chainlink’s total cumulative revenue sits at $373 million, with the majority coming from its oracle network that provides data feeds to smart contracts.
LINK Price Movement
Coinciding with the CCIP revenue surge, the price of LINK tokens reached a two-year high of $21.71 on March 11th. While the price briefly revisited this level on March 14th, it has since retreated to below $20 at the time of writing.
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Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.
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