Chainlink Fundamental Analysis
Chainlink (LINK) is an ERC-677 token powering Chainlink — one of the pioneering blockchain oracle projects, launched in 2017. Chainlink’s oracle solution provides universal connectivity for smart contracts by bringing off-chain data to the blockchain.
Since any blockchain is a closed system, it does not allow the exchange of information with the outside world by default. At the same time, there’s a lot of demand for such data in DeFi and among the dApp developers. The alternative solutions to this problem have their shortcomings: centralized oracles can be unsafe since any of them can be a single point of failure, and building oracle functionality directly into blockchain brings scalability issues and, again, security concerns. Chainlink’s oracle doesn’t have those problems, providing a safe, fast, and scalable security layer, ready for customization and deployment. Besides the standard oracle services, Chainlink provides the randomness function for crypto games and enterprise-grade blockchain connectivity. Chainlink node operators are paid in LINK tokens, which are also used for staking.
Chainlink Price Chart
For a while after its ICO in 2017, Chainlink was trading mostly below $1. This lasted until the Chainlink mainnet launch, when the price started picking up steam, rising from ~$0.5 in April 2019 to ~$3.5 in July of the same year. This was followed by a slight downturn and a relatively calm period which lasted until the beginning of 2020, during which the price stayed in the ~$1.5-$2.5 range. After that, Chainlink’s price rose again, reaching ~$4.7 by March. Those fluctuations can probably be explained by the fact that, as the Chainlink team themselves pointed out, the interest in the oracle network security is cyclical, experiencing an influx every time the amount of dApps that use the oracle services reaches a certain number. This trend continued later, too: after a correction in the late spring of 2020, Chainlink’s price rose to ~$19 by August, then, after another fall, reached ~$34 in February of 2021. It reached the next peak in May of the same year when Chainlink’s price surged almost to $53. In the summer of 2021, the price experienced another fall, by July trading at $13-$14. However, one can argue that this is just part of the cycle, and Chainlink is due for the next price hike soon.
Chainlink Technical Analysis
Chainlink’s price has been moving in a descending channel for most of the first half of July 2021. Note that the candles during that period have been quite short which may signal price consolidation, which in combination with the channel pattern may mean the price is going to break out as soon as the bulls gain a bit of confidence. On the other hand, the price went below the previous support zone of ~$15-$16, which, understandably, doesn’t bring much certainty about Chainlink’s future. This is further supported by the fact that until mid-July, the descending triangle pattern could be observed, but it failed to end in a breakout. There are opportunities for a LINK retracement yet, but it’s best to observe the market for a while longer. Meanwhile, as usual, the analysts are reminding the traders to put stop losses into their trades where appropriate.
Chainlink Price Prediction
Below we have collected the most reliable price projections for Chainlink (LINK) from popular forecast platforms.
#1. WalletInvestor LINK Price Prediction for 2021, 2023, 2025
According to WalletInvestor, Chainlink price will grow from $22.21 to $40.862 in one year. That makes LINK an awesome investment. The long-term earning potential is 83.98%. Predicted price for the end of 2026 is $128.490.
#2. TradingBeasts LINK Price Prediction for 2022
Answering the question about if Chainlink is a good investment, TradingBeasts say a resounding no. In the 2021 perspective, this coin price is predicted to reach $21.360 with a reduction to $20.363 by the end of 2022.
#3. DigitalCoin LINK Price Forecast for 2021, 2022, 2023, 2025
In DigitalCoin analysis, the price of Chainlink cryptocurrency will rise in the next 5 years starting from $23.1965 as of today’s price to $90.046151. It will go up to $38.5993845 by 2022 and starts its reduction in 2023–2024. Based on this forecast, Chainlink is a profitable long-term investment.
#4. LongForecast LINK Price prediction for 2021–2022
In 2021, the average Chainlink price will go up to $24.203. In 2022, Chainlink’s price will rise significantly to an average of $40.4.
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Just go to SwapSpace and follow these easy steps:
- Choose the exchange pair, i.e. BTC to Chainlink, and the amount for your exchange and press the “View offers” button.
- Select the best exchange offer. You can sort them by better rates, exchange trust rates, or fixed and floating exchange options.
- Provide the recipient address to which the coins will be transferred.
- Transfer your money to the exchange service.
- Just wait until you'll see LINK in your wallet!
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As it can be clear from the analysis cited above, Chainlink (LINK) projections are rather contradictory. There is no universal consensus either about positive or negative future LINK price movements. Indeed, the future possible growth depends on various factors: announcements, new technological solutions of the Chainlink projects, the crypto environment in general, legal position, and so on. We kindly remind you that before investing in any cryptocurrency, it is essential to do your own research (DYOR).
Frequently Asked Questions
What is Chainlink token?
Chainlink token (LINK) is a token used in the Chainlink blockchain oracle network. LINK is used to pay for the services provided by the network, such as data requests, as well as for securing the network.
Will Chainlink reach $100?
Yes, Chainlink can reach $100, according to some experts including Walletinvestor.com. Keep in mind that while this is a reachable goal, sources usually put it in their Chainlink price predictions for 2025 or later, so it’s definitely a long-term investment.
Why does Chainlink need a token?
Chainlink needs a token to facilitate the processes in the network — as most of the other crypto tokens, LINK is at the heart of the system. Without Chainlink coin, the network participants would have no incentive to contribute their work or keep it honest.
How do I get Chainlink tokens?
It’s easy to get Chainlink tokens as they are traded on many exchanges, since Chainlink is one of the most popular blockchain projects. You can get LINK in just a few simple steps right here on SwapSpace — we will help you get the best rate.
Is Chainlink a good investment?
Chainlink is definitely a good investment, according to various sources — especially long-term. It’s expected either to become a slowly but reliably growing asset, similar to the more traditional investments or to explode in price — either way, forecasts are optimistic.
How much will Chainlink be worth?
According to some analysts, Chainlink will be worth more than $25 by the end of 2021. Chainlink price predictions for 2021–2025 mostly promise further growth, with some even saying it will break the $100 barrier by 2025.
Disclaimer: This article should not be considered as offering trading recommendations. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor should research multiple viewpoints and be familiar with all local regulations before committing to an investment.
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