{"id":366275,"date":"2024-01-27T00:00:37","date_gmt":"2024-01-26T18:30:37","guid":{"rendered":"https:\/\/ambcrypto.com\/?p=366275"},"modified":"2024-01-26T17:54:19","modified_gmt":"2024-01-26T12:24:19","slug":"why-is-chainlink-linking-up-with-arbitrum","status":"publish","type":"post","link":"https:\/\/ambcrypto.com\/why-is-chainlink-linking-up-with-arbitrum\/","title":{"rendered":"Why is Chainlink \u2018linking up\u2019 with Arbitrum?"},"content":{"rendered":"<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><i><span style=\"font-weight: 400;\">Arbitrum developers would be able to run offchain programs on Chainlink.<\/span><\/i><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><i><span style=\"font-weight: 400;\">Chainlink\u2019s volume dropped while Arbitrum\u2019s jumped.<\/span><\/i><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Decentralized computing platform <\/span><a href=\"http:\/\/ambcrypto.com\/predictions\/chainlink-price-prediction\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Chainlink [LINK<\/span><\/a><span style=\"font-weight: 400;\">] has announced its integration with the <\/span><a href=\"http:\/\/ambcrypto.com\/predictions\/arbitrum-price-prediction\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Arbitrum [ARB]<\/span><\/a><span style=\"font-weight: 400;\"> Mainnet, AMBCrypto can confirm. The project made this known in an update <\/span><a href=\"https:\/\/www.prnewswire.com\/news-releases\/arbitrum-one-integrates-chainlink-functions-on-mainnet-302044648.html\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">released<\/span><\/a><span style=\"font-weight: 400;\"> on the 25th of January.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to the information AMBCrypto received, Chainlink Function would now work on Arbitrum one. With this in place, developers on the Arbitrum ecosystem can connect to any offchain device or system.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is because Chainlink Functions act as a decentralized compute runtime that&#8217;s useful to test, simulate, and run custom offchain logic for smart contracts.\u00a0<\/span><\/p>\n<h4><b>Development takes center stage while market dumps<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Regarding the development, Chainlink Labs Chief Business Officer Johann Eid said that Arbitrum&#8217;s important role in the <\/span><a href=\"http:\/\/ambcrypto.com\/category\/ethereum-news\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Ethereum [ETH]<\/span><\/a><span style=\"font-weight: 400;\"> ecosystem was the <\/span><a href=\"http:\/\/ambcrypto.com\/arbitrums-dominance-soars-as-these-metrics-break-barriers\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">reason<\/span><\/a><span style=\"font-weight: 400;\"> it went ahead with the integration. Eid said:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8220;Making Functions available for Arbitrum users is about connecting Web2 and Web3 developers and bridging the gap to allow for shared collaboration, growth, and a shared sense of community.&#8221;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Furthermore, AMBCrypto then <\/span><a href=\"https:\/\/app.santiment.net\/charts\/ZZ9qA572__sCl\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">looked<\/span><\/a><span style=\"font-weight: 400;\"> into the development activity at both ends. At press time, Santiment\u2019s data showed that the development activity metric on Arbitrum and Chainlink has grown significantly.<\/span><\/p>\n<figure id=\"attachment_366277\" aria-describedby=\"caption-attachment-366277\" style=\"width: 3840px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/ambcrypto.com\/wp-content\/uploads\/2024\/01\/ChainLink-on-Ethereum-LINK-11.14.27-26-Jan-2024.png\"><img decoding=\"async\" class=\"wp-image-366277 size-full\" src=\"http:\/\/ambcrypto.com\/wp-content\/uploads\/2024\/01\/ChainLink-on-Ethereum-LINK-11.14.27-26-Jan-2024.png\" alt=\"\" width=\"3840\" height=\"1300\" srcset=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2024\/01\/ChainLink-on-Ethereum-LINK-11.14.27-26-Jan-2024.png 2560w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2024\/01\/ChainLink-on-Ethereum-LINK-11.14.27-26-Jan-2024-300x102.png 300w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2024\/01\/ChainLink-on-Ethereum-LINK-11.14.27-26-Jan-2024-1024x347.png 1024w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2024\/01\/ChainLink-on-Ethereum-LINK-11.14.27-26-Jan-2024-768x260.png 768w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2024\/01\/ChainLink-on-Ethereum-LINK-11.14.27-26-Jan-2024-1536x520.png 1536w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2024\/01\/ChainLink-on-Ethereum-LINK-11.14.27-26-Jan-2024-2048x693.png 2048w\" sizes=\"(max-width: 3840px) 100vw, 3840px\" \/><\/a><figcaption id=\"caption-attachment-366277\" class=\"wp-caption-text\">Source: Santiment<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">The growth here was proof that the developers of both projects were doing a lot of work to keep the network running smoothly. If this metric continues to be at <\/span><a href=\"http:\/\/ambcrypto.com\/chainlink-taps-a-new-achievement-will-it-benefit-link\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">impressive<\/span><\/a><span style=\"font-weight: 400;\"> levels, it could serve as a bullish signal for both Chainlink and Arbitrum.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While it might not affect the price, the development activity could help attract new users to the networks.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, there is no guarantee that the metric will continue to surge at both ends. At some point, upgrades would slow down and the development activity would decrease.\u00a0<\/span><\/p>\n<h4><b>It\u2019s even at Chainlink\u2019s end<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">Another metric we checked out was the Herfindahl Index. But this time, the focus was on Chainlink alone. The Herfindahl Index acts as a measure of the decentralization of a network.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When the score is high, it implies a high supply concentration and distribution is not even. However, a small Herfindahl Index score <\/span><a href=\"https:\/\/studio.glassnode.com\/metrics?a=LINK&amp;category=Distribution&amp;m=distribution.Herfindahl&amp;s=1674728589&amp;u=1706264589&amp;zoom=365\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">suggests<\/span><\/a><span style=\"font-weight: 400;\"> evenly distributed funds across addresses.\u00a0<\/span><\/p>\n<figure id=\"attachment_366279\" aria-describedby=\"caption-attachment-366279\" style=\"width: 1800px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/ambcrypto.com\/wp-content\/uploads\/2024\/01\/glassnode-studio_chainlink-herfindahl-index-3.png\"><img decoding=\"async\" class=\"wp-image-366279 size-full\" src=\"http:\/\/ambcrypto.com\/wp-content\/uploads\/2024\/01\/glassnode-studio_chainlink-herfindahl-index-3.png\" alt=\"\" width=\"1800\" height=\"1013\" srcset=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2024\/01\/glassnode-studio_chainlink-herfindahl-index-3.png 1800w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2024\/01\/glassnode-studio_chainlink-herfindahl-index-3-300x169.png 300w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2024\/01\/glassnode-studio_chainlink-herfindahl-index-3-1024x576.png 1024w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2024\/01\/glassnode-studio_chainlink-herfindahl-index-3-768x432.png 768w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2024\/01\/glassnode-studio_chainlink-herfindahl-index-3-1536x864.png 1536w\" sizes=\"(max-width: 1800px) 100vw, 1800px\" \/><\/a><figcaption id=\"caption-attachment-366279\" class=\"wp-caption-text\">Source: Glassnode<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">At the time of writing, the metric was 0.0039. This score infers that distribution on the Chainlink network was relatively even.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In terms of the volume, on-chain data <\/span><a href=\"https:\/\/app.santiment.net\/charts\/V_0xITa3__sCl\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">showed<\/span><\/a><span style=\"font-weight: 400;\"> that Arbitrum had risen from its lows. As of the 25th of January, Arbitrum\u2019s volume was 504.22 million. But press time data showed that it had increased to 508.72 million.<\/span><\/p>\n<figure id=\"attachment_366280\" aria-describedby=\"caption-attachment-366280\" style=\"width: 3840px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/ambcrypto.com\/wp-content\/uploads\/2024\/01\/Arbitrum-ARB-11.35.52-26-Jan-2024.png\"><img decoding=\"async\" class=\"wp-image-366280 size-full\" src=\"http:\/\/ambcrypto.com\/wp-content\/uploads\/2024\/01\/Arbitrum-ARB-11.35.52-26-Jan-2024.png\" alt=\"\" width=\"3840\" height=\"1300\" srcset=\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2024\/01\/Arbitrum-ARB-11.35.52-26-Jan-2024.png 2560w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2024\/01\/Arbitrum-ARB-11.35.52-26-Jan-2024-300x102.png 300w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2024\/01\/Arbitrum-ARB-11.35.52-26-Jan-2024-1024x347.png 1024w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2024\/01\/Arbitrum-ARB-11.35.52-26-Jan-2024-768x260.png 768w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2024\/01\/Arbitrum-ARB-11.35.52-26-Jan-2024-1536x520.png 1536w, https:\/\/ambcrypto.com\/wp-content\/uploads\/2024\/01\/Arbitrum-ARB-11.35.52-26-Jan-2024-2048x693.png 2048w\" sizes=\"(max-width: 3840px) 100vw, 3840px\" \/><\/a><figcaption id=\"caption-attachment-366280\" class=\"wp-caption-text\">Source: Santiment<\/figcaption><\/figure>\n<hr \/>\n<p style=\"text-align: center;\"><span style=\"font-weight: 400;\">How much are <\/span><span style=\"font-weight: 400;\">1,10,100 LINKs worth today<\/span><span style=\"font-weight: 400;\">?<\/span><\/p>\n<hr \/>\n<p><span style=\"font-weight: 400;\">However, Chainlink had an opposite movement per volume. Between the 25th of January and the time of writing, the volume decreased.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The decrease in Chainlink\u2019s volume indicates that fewer LINK tokens have been engaged in transactions while ARB usage jumped.<\/span><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Check out what the Chainlink Functions and Arbitrum One integration can offer the projects.<\/p>\n","protected":false},"author":72,"featured_media":366282,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"footnotes":""},"categories":[31,66,3,4,20],"tags":[],"class_list":["post-366275","post","type-post","status-publish","format-standard","has-post-thumbnail","category-altcoins-news","category-new-news","category-news","category-social","category-trading-view"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Why is Chainlink \u2018linking up\u2019 with Arbitrum? 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