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Investors eyeballing the crypto market should consider Chainlink if they want a platform with real-world applications.
The project made news in May 2021 when LINK, its native token, climbed to an all-time high of $52, but the cryptocurrency has since dropped into the single digits. Even though crypto projects are speculative, this one could have much to offer the right investor.
Chainlink Overview
| At a Glance | |
|---|---|
| Cryptocurrency Network | Chainlink |
| Native Currency | LINK |
| Market Cap | Approximately $3.6 billion as of Aug. 1, 2022 |
| All-Time High | $52.88 on May 10, 2021 |
| All-Time Low | $0.1482 on Nov 29, 2017 |
Chainlink is a crypto platform designed to bridge the gap between decentralized blockchain networks and off-chain data sources using hybrid smart contracts.
The platform accomplishes this by creating a decentralized network of oracles — digital sensors that monitor everything from weather conditions and sports scores to stock prices — and offers greater data security than centralized oracle sources.
Users send out requests for information to a network built on the Ethereum platform. Then, through a series of hybrid smart contracts, information is verified via the distributed oracle network and entered into the blockchain system.
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LINK, the project’s native currency, pays users who underwrite these data transactions with the “proof-of-work” consensus method.
Chainlink’s Main Competitor
Since 2014, Chainlink has sought to solve the industry-wide problem of securely transmitting information between off-chain data sources and blockchain systems. This network is the king of the oracle-hill, but some competitors are looking to upset that order.
Band Protocol
Band Protocol is Chainlink’s biggest competitor for market dominance. First launched on Ethereum’s blockchain in 2019, the network quickly moved to the Cosmos (ATOM) platform in 2020. Band’s claim to fame is its broad compatibility with blockchain platforms. BAND is the platform’s sole currency and incentivizes users to create new blocks and manage data queries.
Band’s move to Cosmos came with expanded capabilities, including a more efficient process for certifying transactions. Band is betting on an industry need for speedy data feeds and plans to be the chosen one.
Another feather in Band’s cap comes from its seed money investors. In 2019, VC heavy-hitter Sequoia Capital and crypto-trading giant Binance raised a combined $8.9 million in seed funding — increasing both its visibility and standing within the investment community.
Should You Invest In Chainlink?
Chainlink is worth investing in for the following reasons:
- Chainlink is a well-established project within the crypto sphere with over 1,400 partnerships, outperforming its biggest competitor, Band Protocol, which has only 53.
- Ethereum’s planned merging of its Mainnet and Beacon Chain proof-of-stake systems will mean greater scalability, security and sustainability for Chainlink — making it an even more attractive option for future customers.
- Chainlink’s diverse offerings work with any smart contract-enabled blockchain network, which makes it a flexible option for enterprise clients.
- Despite Chainlink’s early entry into the distributed oracle network sphere, distributed oracle network technology is in its infancy. Chainlink’s full potential is still unknown, but it shows great promise for overcoming the divide between real-world data and blockchain networks.
However, Chainlink, like the rest of the cryptocurrency market, has had a rough year so far in 2022 and has yet to show any real signs of sustained recovery. While it has potential for the future and predictions are generally positive, it’s important to invest cautiously and never put more into any investment than you can afford to lose.
Chainlink Price Prediction
Like many other cryptocurrencies, LINK’s value has fluctuated wildly over the last two years. After soaring to $52.88 in May 2021, the token plunged to under $10 in more recent months. As Chainlink resides on the Ethereum platform, ETH token influences LINK’s movements.
Q3 2022 Price Prediction
With Chainlink’s two-day conference, SmartCon, scheduled for early September, many believe this will stir the smart contract community and bolster LINK’s value.
Coinpedia predicts a bullish rise to $7.73 if all goes well, although bearish sentiment sees the price settling at $5.36.
Q4 2022 Price Prediction
The Ethereum network is transitioning to a fully proof-of-stake consensus system with subsequent improvements to network speed and flexibility. If this is successful, there could be a surge of interest from investors wanting to cash in on Chainlink’s subsequently quicker network.
Coinpedia expects a bull trend to top out at $10.01 for the end of the year but doesn’t discount a possible drop to $6.75.
2025 Price Prediction
Cryptopolitan weighs in on Chainlink’s future value, predicting that the blockchain will trade between $26.64 and $32.01 in 2025.
The crypto news site points to Chainlink’s thriving ecosystem — open and welcoming to app and software developers looking for ways to connect the world.
2030 Price Prediction
Much of cryptocurrency’s future remains uncertain as legislators and regulators grapple with how best to work with technology that defies centralized control. Nevertheless, 55 out of 100 of the world’s largest financial institutions now invest in digital currency, and President Biden recently instructed his government to set policy directives for managing crypto assets.
Digital currencies are likely to become even more mainstream, and Cryptopolitan forecasts that Chainlink will trade between $182.88 and $221.04 in 2030.
Investors wanting to buy their piece of Chainlink’s potential can do so on exchanges like Coinbase, Gemini or Kraken.
Final Take
Although the price of Chainlink has fluctuated in recent years, it could be a good addition to your crypto portfolio. It’s a well-established project with potential for growth.
However, the cryptocurrency market is volatile, and it’s impossible to guarantee any future pricing. Never invest more than you can afford to lose.
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