Chainlink (LINK) Price Skyrockets
Chainlink (LINK) has certainly been in the spotlight for the past few months. Since the beginning of 2020, the LINK cryptocurrency has been on a steady rise, with its price surging more than 200% to-date.
Beating several other altcoins, Chainlink has climbed up the ranks to be the 12th most-valued cryptocurrency by market cap.
But what has made it so popular?
Chainlink is an oracle-service-provider which brings a unique value proposition for businesses and enterprises. The network helps to connect off-chain data and APIs with blockchain-based smart contracts.
This encourages businesses to adopt blockchain and develop decentralized applications (DApps) and further connect them to their off-chain cloud-based data servers.
Chainlink is built atop the Ethereum blockchain network. The advantage with Chainlink is that it supplies data from multiple sources to the smart contracts in a decentralized manner. Since the Chainlink oracles are connected to multiple sources, it also ensures the security and reliability of the platform.
Several market players attribute Chainlink’s latest popularity to the rise in decentralized finance (DeFi) applications.
The Rising Demand for DeFi and Chainlink’s (LINK) Success
In just the last six months, the demand for DeFi applications has surged. Many big blockchain players are now relying on Chainlink to connect on-chain DeFi smart contracts to their off-chain data feeds.
Simon Peters, eToro’s crypto market analyst said, “The crypto asset has been displaying a bullish trend for some time now, with Chainlink making all the right noises by partnering with a number of projects in the decentralized finance (DeFi) space.”
Some big players of the DeFi industry are now using Chainlink oracles. Names like Graph Protocol, Kyber Network, AVA, Sythetix, Opium Network and Box have also integrated Chainlink on their end.
Much recently, China’s national blockchain project – Blockchain Services Network (BSN) – announced that they will be integrating Chainlink oracles with their platform. A contract for working in partnership with the Chinese government has brought massive popularity for Chainlink.
Also, the Switzerland-based crypto lender Nexo has announced that it plans to venture into the prime brokerage space by leveraging Chainlink-powered audits. Nexo CEO Atoni Trenchev said that Chainlink will provide audit trails for Nexo’s borrowing and lending operations.
Chainlink will also provide a real-time exchange rate for calculating interest payments where the interest on a loan is paid in a separate currency than the actual lending denomination.
With such a plethora of DeFi use-cases, Chainlink has emerged as the key link for DeFi growth, and its utility is more likely to expand in the long term.
Vance Spencer, co-founder of Framework Ventures, said: “Long term, we expect Chainlink’s value to continue to appreciate. We believe that the smart contract platform that eventually becomes the standard for Web3 will be valued at several factors higher than Ethereum’s current market cap. If that is the case, then it’s natural to assume that its security layer, Chainlink, will significantly grow in value as well”.
Chainlink (LINK) Price Hits All-time High
Over the last week, Chainlink (LINK) price has surged another 50% and hit new record highs above $6. At press time, Chainlink is trading at $6.05 with a market cap of $2.1 billion.
But crypto market analysts remain divided on Chainlink’s price movement in the coming weeks. Garry Kabankin, the Project Coordinator at Santiment, says that as per the distribution chart, addresses holding 100 to 1000 LINK tokens contributed a significant sum of LINK sent to exchanges. These LINK tokens sitting between multiple crypto exchanges show that the downward price pressure is brewing. Before moving higher further, Chainlink is set for a downswing from these levels, he added.
“Essentially, people moving LINK are trying to offload their bags and take profits. If LINK’s bulls are unable to absorb this rising sell pressure and sell walls, then usually it can affect the price quite negatively,” said Kabankin.
On the other hand, the top crypto analyst Investment Manager at Cane Island Alternative Advisors – Timothy Peterson – remains highly bullish on LINK.
In fact, he also goes to add that Chainlink will be bigger than Bitcoin. As per Peterson, Chainlink’s price will touch $8 by December 2020.
It will be interesting to see which route LINK takes from here. But one thing is for sure, crypto investors are certainly interested in this altcoin and its future potential.