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Investors eyeballing the cryptocurrency market should consider Chainlink if they want to invest in 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 over $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 $3.49 billion as of Nov. 10, 2022 |
| All-Time High | $52.88 on May 10, 2021 |
| All-Time Low | $0.1263 on Sept. 23, 2017 |
Chainlink is a cryptocurrency 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 outside data feeds providing 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.
LINK, the project’s native currency, previously paid users who underwrite these data transactions with the proof-of-work consensus method. However, following the Ethereum “Merge” upgrade that replaced that network’s proof-of-work consensus layer with a proof-of-stake consensus layer, Chainlink also switched to proof-of-stake to remain operational on Ethereum. Chainlink’s method of staking, called explicit staking, keeps oracles secure and ensures that they report off-chain events accurately.
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.
Q4 2022 Price Prediction
The Ethereum network transitioned to a fully proof-of-stake consensus system, which should result in improved network speed and flexibility over time. If it does, there could be a surge of interest from developers wanting to build on Chainlink’s subsequently quicker network, which could drive up the price of the coin.
Coinpedia expects a bull trend to top out at $11.28 for the end of the year but doesn’t discount a possible drop to $8.19.
How Much Will Chainlink Be Worth in 2025?
Cryptopolitan weighs in on Chainlink’s future value, predicting that the token will trade between $22.63 and $27.71 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.
What Will Chainlink Be Worth in 2030?
Much of cryptocurrency’s future remains uncertain as legislators and regulators grapple with how best to work with technology that defies centralized control. Nevertheless, more than half of 100 of the world’s largest financial institutions now invest in digital currency, and President Biden recently instructed his administration to set policy directives for managing crypto assets.
Digital currencies are likely to become even more mainstream, and Cryptopolitan forecasts that Chainlink will trade for $148.52 to $180.73 in 2030.
Investors who believe in Chainlink’s potential can buy coins on crypto exchanges like Coinbase, Gate.io or Kraken.
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 one 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, Band raised $7.9 million in seed funding in three rounds that attracted heavy-hitters like Sequoia Capital and crypto-trading giant Binance. The successful fundraising effort increased Band’s visibility and standing within the investment community. However, Band currently secures just 1.7% of funds secured by decentralized blockchain oracles, while Chainlink, the largest blockchain oracle, secures about 46%, according to Capital.com.
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. Band Protocol had only 70 as of August, according to BeInCrypto.
- Ethereum’s merge 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 do your research and invest cautiously.
Final Take
Although the price of Chainlink has fluctuated in recent years, it could be a good addition to your crypto portfolio. It powers 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.
FAQ
The answers to these frequently asked questions can help you decide whether chainlink deserves a place in your investment portfolio.
- Does chainlink have a future?
- It appears so. The Chainlink network overcomes a major stumbling block – getting off-chain data onto the blockchain. Possible applications for this technology extend well beyond decentralized finance.
- Can chainlink reach $1,000?
- It's possible that at some time in the future, chainlink could reach $1,000. However, it has yet to hit $100, and analysts expect the price to remain below $200 at least through 2030.
Daria Uhlig contributed to the reporting for this article.
Information is accurate as of Nov. 10, 2022.
Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.
- Cryptopolitan. 2022. "Chainlink Price Prediction 2022-2031: A strong buy sentiment?"
- Forbes. 2022. "Crypto’s Gone Mainstream; Here’s What Comes Next."
- Benzinga. 2022. "HOW HIGH CAN CHAINLINK (LINK) GO?"
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- CoinTelegraph. 2022. "Chainlink ditches Ethereum PoW forks for PoS after The Merge."
- Be In Crypto. 2022. "What Is Band Protocol (BAND)?"
- CoinMarketCap. "Chainlink."
- Capital.com. 2022. "BAND Protocol: Can latest tech devs help BAND break Chainlink, Maker oracle domination?"
