- Maelstrom Fund, an early-stage crypto investment fund operated by Arthur Hayes’ family office, has expressed bullish sentiment on Flare (FLR), a blockchain oracle digital asset and a rival to Chainlink (LINK).
- The fund believes that Flare is currently undervalued and has the potential to catch up to Chainlink as it gains traction.
- Maelstrom Fund also highlighted that unlike other oracle providers, Flare can build its own native ecosystem.
Maelstrom Fund, a crypto investment fund, expresses bullish sentiment on Flare (FLR), a blockchain oracle digital asset, stating it’s likely undervalued and has the potential to rival Chainlink (LINK).
Flare’s Potential to Rival Chainlink
Maelstrom Fund has stated that despite Chainlink’s early mover advantage and large number of project integrations, Flare has the potential to quickly catch up. The fund further illustrated Flare’s potential by stating that the fully diluted valuation of FLR is currently about 23% of Chainlink’s, even though Flare has less than 10% of the project integrations that Chainlink boasts.
Flare’s Unique Positioning in the Oracle Space
Unlike other oracle providers such as the Solana (SOL)-based Pyth Network (PYTH), Flare can build its own native ecosystem. This unique positioning gives it a significant advantage. Maelstrom Fund predicts that if Flare reaches 50% of Chainlink’s fully diluted valuation, the FLR token could increase by approximately 2.2x. If Flare reaches 75% of Chainlink’s fully diluted valuation, FLR could soar by 3.3x.
Chainlink’s Market Leadership and Flare’s Potential
Despite Chainlink’s market leadership, its latency and applicability to high-throughput use cases leave much to be desired. Pyth’s focus on financial institutions brings a unique dimension to the oracle space, but lacks general applicability across use cases. Flare’s approach of combining these features with those of an L1 (layer-1) gives it a unique positioning worth watching.
Conclusion
Given Flare’s potential to build its own native ecosystem and its unique positioning in the oracle space, it’s likely to catch up to Chainlink. If it reaches 50% or 75% of Chainlink’s fully diluted valuation, the FLR token could see significant growth. However, as with all investments, potential investors should conduct their own due diligence before making any decisions.
