Chainlink Rally Fizzles Out Amid Business Model Concerns and Reduced Security

Chainlink's LINK token price surged 35% in September but has since corrected 10% in October, leading to concerns about further declines.

Much of the September rally was fueled by hype around an experiment with SWIFT using Chainlink's oracle services. However, this did not translate into sustained gains.

Chainlink's protocol revenue from price feeds has dropped 57% from May levels when measured in LINK terms, raising doubts about the sustainability of its business model.

Criticism emerged about Chainlink quietly reducing the number of required approvals for transactions from its multi-signature wallet, downplaying security concerns.

Some argue Chainlink's $4 billion market cap looks questionable compared to Uniswap's $2.3 billion cap and substantially higher protocol fee revenue.