The crypto market is flourishing with new and exciting projects and crypto tokens. It is opening up a plethora of opportunities for investors, traders, and institutions alike. One such cryptocurrency that gained much traction with its unique technology and business model is Chainlink (LINK).
Chainlink saw a significant rise of more than 66% in 2021, and analysts predict that if the bullish momentum comes back, Chainlink will likely explode in 2023. Let's dig a bit deeper into LINK and the factors that drive the coin to explode by the end of 2023.
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Looking At 2023: Is Chainlink All Set For A Bullish Ride This Year?
Chainlink is a project that aims to bring interoperability to the blockchain industry. Its business model is solely focused on the creation of smart contracts for the outside world. LINK, the native token of the blockchain network, has garnered much attention from investors and is set for a bullish rally in 2023.
The market capitalization of LINK surpassed $9 billion and it has consolidated its place as the 16th most valuable cryptocurrency on the CoinMarketCap ranking. Let's see some of the factors that back up the prediction that Chainlink is going to explode in 2023.
#1: Its Unstoppable Growth
Unlike other cryptocurrencies, Chainlink hopes to decentralize the internet to bridge the gap between blockchain technology-based smart contracts and real-world applications. LINK's price surged by over 64% in May 2021 to $52.88, reaching a new all-time high.
The project was initiated in 2014 under the name SmartContracts.com. Later after its official launch, the project was named Chainlink, reflecting its purpose. LINK had an incredibly successful ICO in 2017, which instantly brought the network into the limelight. The event gained a sum of $32 million, which allowed Chainlink to expand its boundaries of oracle capabilities.
#2: Significant Features That Makes Chainlink Unique
Chainlink continues to be an exciting project in the market as it solves an infrastructural challenge with mainstream blockchain adoption. Blockchain principles, by default, do not have access to data outside their networks. A separate DeFi instrument is mandatory to facilitate data feeds in smart contracts.
This is what Chainlink brings in. It allows decentralized oracle networks to have safe interaction of smart contracts with off-chain platforms. Additionally, by running critical data infrastructure required for blockchain success, Chainlink, as a decentralized network, allows its users to become the node operators and help them earn revenue.
#3: Role Of Oracle Network
Yet another significant factor that drives Chainlink's value is being a secured oracle network provider for blockchains. Blockchains themselves cannot connect to external applications in a trusted and secured manner.
What Chainlink's decentralized oracles provide is a way for smart contracts to communicate with outside data. This way, smart contracts can be executed based on data that Ethereum itself cannot connect to.
Oracles are a significant factor for network expansion as they are the core of several technologies and developments. By leveraging Chainlink, institutions can quickly deploy the technology of this network in a trustless way.
In addition to this, Chainlink's decentralized oracle network also offers a tamper-proof output and input for a few complex smart contracts on any blockchain, making it one of the best projects in the market to date.
Don't Miss: Chainlink Price Predictions
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Why Is Chainlink Going To Explode In 2023 - 2025? Experts Speak Up
With its rapid price surge, several crypto enthusiasts and analysts predict that Chainlink is going to explode in 2023 tremendously. Let's see some of these predictions.
In January 2021, the LINK price continued to trade at $11.45. The price spiked up to $52.88, surprisingly to a new all-time high on May 10th. Experts predict that the LINK price may reach about $30-$40 by the end of 2023.
Experts from Longforecasts expect the price to trade in between $34.73 and $43.11. For the long term, they say that the price may breach a range of $100.40 by 2025 if it continues to keep its momentum.
Chainlink 2.0: The Recent Update
As mentioned in its recently released Whitepaper, LINK is inching towards its next and latest update, the Chainlink 2.0. It will further build off-chain networks on top of the oracles for executing smart contracts seamlessly and efficiently. It makes smart contracts cheaper and faster, along with maintaining the security of the layer 1 base chain.
Chainlink: Solving The 'Oracle Problem'
The 'oracle problem' refers to the issues including trustworthiness and reliability of oracles. The significant step in blockchain creation is data entry, as they are immutable and censorship-resistant. If the information they receive is incorrect, it is nearly impossible to rectify it in the case of some blockchains.
With the integration of next-generation protocols, Chainlink successfully tackles these issues enhancing the whole blockchain network.
Read More: Could Chainlink be a Millionaire-Maker Coin?
Chainlink: Significant Use Cases
Unlike other cryptocurrencies in the market, the uniqueness of Chainlink lies in its real-world use-cases. Its applications expand from IoT (Internet of Things) to essential utilities like water, energy, payment, etc.
For instance, Chainlink's oracles can be used to feed consumption rates into smart contracts to levy CO2 taxes, trigger over-consumption penalties and increase the efficiency of energy delivery.
The team brings forth their use-cases in multiple sectors of the market in their official blog. They have also taken this aspect to their Twitter handle.
Why Chainlink Is Going To Explode In 2023?
LINK has seen a significant rise over the years, and if it continues to keep its momentum, it is most likely to explode by the end of 2023. Thanks to the development team behind the project, smart contracts are made even smarter with Chainlink. It integrates third-party data into smart contracts allowing those on Ethereum to respond to other asset rates, global events, and API calls.
From telecommunication, healthcare, finance to insurance, governance methods, and much more, Chainlink has diverse applications. By bringing many exciting use-cases to smart contracts, the project has gained much traction and has marked its uniqueness in the market.
Along with its latest update, Chainlink has also developed a way of using oracles to provide on-chain transaction privacy for DeFi smart contracts through a new solution called Mixicles.
The demand for oracle networks, DeFi platforms, and smart contracts will continue to increase in the coming years. Therefore, Chainlink will garner much support from higher institutions as well as investors and will likely explode in 2023, making it one of the best long-term investment options.
Check Out: Should You Buy Chainlink?
Final Thoughts
Though Chainlink has competitors in the market, the project is firmly entrenched as a potential leader in its sector. It has positioned itself as the go-to decentralized oracle network to integrate real-world data into smart contracts efficiently and securely.
With the rising demand for decentralized products and services, the price of LINK will continue to surge higher in the coming years. Chainlink's innovation and next-gen protocols have indeed enhanced DeFi projects and the blockchain network as a whole.
As the crypto bull run continues to gain momentum, with all the plans in place and increasing adoptions, Chainlink is going to explode in 2023, making it a viable option for investors.
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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
