yyy|May 16, 2026 13:43
Circle CCTP, LayerZero, and Chainlink are like a three-way standoff, and I think this is currently the optimal competitive landscape for the cross-chain communication sector.
After the KelpDAO hack incident, LayerZero has been under heavy negative public opinion. It seems like Chainlink is dominating them, but in reality, LZ still holds a significant lead over Chainlink in terms of transaction volume by an order of magnitude.
LayerZero's 7-day total transaction volume exceeds $2 billion, while Chainlink CCIP is only around $260 million. Honestly, for Chainlink to surpass LZ is no easy feat.
Tether, as LZ's most important client, has deeply tied interests with them. Tether directly holds equity in LZ Labs and has launched the cross-chain stablecoin USDT0 based on the LZ OFT standard. There's a massive transfer of interests here, and Tether would never let LZ fall.
Although Chainlink is unlikely to pose a substantial threat to LZ in the short term, in the medium to long term, Chainlink undoubtedly has the strength to compete on equal footing with LZ.
A three-way split is currently the optimal competitive landscape.
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