Chainlink ( LINK ) is increasingly being compared to Cisco, the networking giant that laid the foundation for the Internet in the 1990s. In this way, it is positioned as a cornerstone of blockchain technology, providing critical infrastructure and enabling Web3 development. Here’s why industry experts think Chainlink reflects Cisco’s transformative role in the early Internet era.
Why is Chainlink Cisco in the blockchain industry?
- Critical infrastructure provider
The blockchain network is best known for its decentralized oracle network, which bridges smart contracts with off-chain data such as financial market prices, weather forecasts and payment systems. This foundational layer enables blockchain applications, such as Cisco’s Internet-connected routers and switches, to function efficiently. By creating this essential infrastructure, Chainlink has become indispensable to blockchain ecosystems, CNF reported.
- Adoption by early innovators
Chainlink has already been integrated into many decentralized finance and blockchain projects, including Aave and Uniswap. The pioneers of these projects rely on Chainlink technology for safe and efficient operation. Cisco also made similar deals with Internet pioneers in the 1990s, becoming a major provider of networking solutions.
Without guaranteed data sources and interoperability, decentralized applications, gaming platforms and enterprise blockchain solutions cannot scale. Chainlink is the equivalent of Cisco technology that allows websites, email services and e-commerce to scale. Both played a key role in the expansion of their ecosystems.
- Sustainable income model
The LINK blockchain ecosystem’s revenue streams include prophetic fees and investment rewards, which form a long-term growth engine. Cisco has moved from hardware sales to regular revenue through software and services. Similarly, Chainlink’s investment engine and decentralized services provide a strong financial model.
- An underrated resource
Despite its key role, Chainlink remains undervalued compared to more retail-oriented cryptocurrencies such as Dogecoin (DOGE) or Ripple’s XRP. This is reminiscent of the early days of Cisco when its infrastructure work was not as widely recognized.
- Positioned for future growth
As blockchain becomes more widely adopted, Chainlink’s oracles and staking services will be in greater demand. While the Internet was booming, Cisco became the most valuable company in the world. Analysts claim that Chainlink will be in the same league when blockchain is widely adopted.
LINK Price Action
The ecosystem’s original token, LINK, continues to stagnate amid mounting bullish narratives. At press time, LINK is trading at $22.80, having gained 0.88% on Friday, January 3rd. While the market capitalization for the token was 14.53 billion USD.
Despite today’s weak performance, analysts expect the token to rise to $30 due to increased whale activity and growing ecosystem acceptance, CNF reported. Moreover, the derivatives market supports this optimistic story. According to Coinglass statistics, open interest in LINK increased by 3.39% to $609.32 million in the last 24 hours.
