One year ago, when LINK was just below $4, I was hesitating to buy it, so I looked at the comments posted on forums and discovered that many people thought it was an overpriced "shitcoin" which was supposed to dump soon.
As I thought it had a value due to the usefulness of oracles, I took a bit of it, and was happy to see that it surged to almost $20. As this ATH was followed by a correction, I sold it and decided to wait and see, and came back on it again. Why? Because Chainlink oracles contribute to protect DeFi protocols against flash loan attacks and as you may know, these attacks are more and more numerous, and always costlier. Look at Yearn Finance last week...
Chainlink regularly signs contracts with new platforms who need to protect themselves with their oracles. Chainlink has competitors, and the recent bull run of Band Protocol shows that this market is big enough for two oracle tokens. However, Chainlink is still #1 and the perspectives are pretty good:
- Despite extremely high Ethereum transaction fees, DeFi protocols are still successful, and require more and more LINK to avoid flash loan attacks
- The recent contract with Mogul Productions shows that Chainlink oracles can be used outside DeFi ecosystem for new applications - e.g. "DeFiFi"
- LINK price is currently moving around its pivot point above $30... pretty close to the next resistance. If it stays above $30, it will breakout to $40
In the mid term, the price might hit $50 or $100. Nobody knows. You can trade it on an exchange like Binance and put a stop loss to protect yourself. Please click on this link if you have not registered on Binance yet - it will allow you to earn 10% on the trading fees - I share half of my commissions.