If you follow cryptocurrency closely you might have noticed during the recent days the unbelievable growth of LINK, over 160% in just a week. And if those performances are convincing well the soundness of the project is just as strong, all of this make more and more people see in LINK the future of cryptocurrency. But how LINK managed to explode like this in a short period of time, what makes LINK so special, let's find out.
1. What is exactly Chainlink ?
It is interesting to start from the beginning in order to better understand a project, so let's go back in 2017 the year Chainlink was finally launched. According to what the developers have stated the major goal is to solve existing connectivity and interoperability problems with smart contracts by creating blockchain middleware, or software designed to connect with external software. Basically Chainlink aims to make it easier for bank and retail payment systems, other software API and more to connect to smart contract and blockchain networks.
By providing outputs & inputs for smart contracts in any existing blockchain Chainlink becomes a key to cause the contract to operate. Based on solid roots Chainlink decided in 2019 to release their token : LINK, at the time 1 LINK = $0.015. Then the project moved on quickly with many partnerships and collaborations with China's national BSN and Binance for example, which massively contributed to put forward the project.
2. Chainlink : destined to succeed :
The EGF (electronic global forum) had already picked earlier during the year Chainlink as one of the most promising technological pioneers with 5 others cryptocurrency project (like Maker or Elliptic). Sergey Nazarov (Chainlink co-funder) stated :
The use of smart contracts on the blockchain to provide binding guarantees to contractual obligations has many social and economic benefits. We are proud to play a role in the accountability and automation of global and local economies, and we look forward to contributing to the Forum’s discussions on this issue.
All the companies selected this year will be invited to participate in GEF workshops and high-level discussions throughout their two-year presence in the community. This will also allow them to get closer to policy makers and the upper levels of the private sector. As a result blockchain project like Chainlink could open up to new leading partnerships with public organizations.
And it's exactly what they did, with small DeFi projects, with China's BSN and with one the major platform of exchange Binance. Moreover considering the previous cryptocurrency projects who have been selected in the past for this forum it is very encouraging for LINK, for example Ripple (XRP) was one of these back in 2015 and is today one of the most important cryptocurrency in the world.
3. What happened and will happened :
The accumulation of positive things and the growing interest for Chainlink (a growing popularity) coupled with a serious project have allowed this unbelievable growth in recent days. Chainlink managed to overcome Bitcoin the King of crypto concerning the volumes traded, over $500 millions (few millions over BTC), moreover it is twice the volume of ETH traded during the same period of time.
It reveals LINK ain't a shit coin like we found every day, it lives up to its ambitions, even beyond. It's value went from $1.3 up to $14.4 in only 150 days (which is superior to 1000%). It managed to bring more people into the project and continue to build a strong community, as we are speaking LINK is ranked number 3 and more and more people consider that it's only the beginning.
Today its market capitalization is over $4.8 billion, everything seems in favor of Chainlink. It is true that its course is not immune to a slight correction in the coming days due to this significant growth and its value should drop a little, however if we are speaking on the long term Chainlink has some serious points to make and positions itself as one of the leaders of cryptocurrency's market. Let's just hope this project stick to his solid roots and doesn't disappear as quickly as it appeared.