Blockchain technology is still in its early days of development but has infinite potential. Being this revolutionary, blockchain technology provides solutions for many problems most major industries face day-to-day by making everything decentralized. Be that as it may, even this revolutionary technology has its drawbacks.
One of the most notable shortcomings that this technology has is its inability to access reliable off-chain data. In more simple terms, the world of blockchain lacked a bridge with the real world. Even so, because this technology is virtually limitless, a group of people came up with a project name Chainlink (LINK).
This project aims to serve as a bridge between blockchain and the real world. With Chainlink, smart contracts become eligible to use any data resource they need. Using this method, people can introduce current traditional data with the wonders of blockchain technology, and utilize it whenever needed. But what is Chainlink? How did it come into existence? Why is it considered so revolutionary? How can investors profit from this coin? These are just some of the questions that will be answered throughout this article.
What is Chainlink (LINK)?
First, let us elaborate more on what Chainlink is and how it came into existence. Chainlink was first created in 2014 by Sergey Nazarov – an entrepreneur with a major presence in the crypto world. However, it did not launch until September 2017, when the Chainlink protocol was created. After nearly two years, Chainlink officially launched and began being listed in exchanges in May 2019. As mentioned before, blockchain networks lacked a bridge to connect themselves with off-chain resources; and Chainlink aims to be the solution to that.
What are Chainlink Oracles?
Chainlink Oracles are what allow Chainlink to serve as a bridge between off-chain and on-chain resources. Chainlink is a decentralized oracle network whose goal is to solve the oracle problem that limits blockchain networks and blocks them from linking to data resources that are off-chain. In other words, Chainlink tries to connect on-chain resources with off-chain resources. This means that there are two primary pieces that this crypto has:
- OnChain Functions – included in smart contracts which are built to process user data requests.
- OffChain Functions – oracle nodes that are connected to the Ethereum Network but exist off-chain.
There are three contract types that make this connection of on-chain and off-chain data possible.
- Aggregating Contracts – collects necessary data from the chosen oracles and dispatches that data to the contract requesting the data.
- Reputation Contracts – dictates if the oracle provider is trustworthy and reputable.
- Order-Matching Contracts – sends the requesting contract onto the corresponding oracle based on the data requested.
Chainlink (LINK) Price Analysis
Cryptocurrencies have surged in prices throughout the last years, especially this year during which the total market capitalization of the market reached a new all-time high of $2.49 trillion; and even after all these gains, this is just the beginning and the true potential of cryptocurrencies is still unknown. Being this volatile, the market is constantly under pressure and major price changes are experienced by every cryptocurrency. However, this may be beneficial for traders, since the more volatile the market, the higher the rewards.
Rank: 18
When we talk about Chainlink, 2021 proved to be a great year for its growth. Chainlink mainnet officially entered the market in May 2019 with a price of $0.47. The coin experienced a 680% increase in value in a matter of months, reaching a price of $3.67 in July 2019. It dwelled around that price until August 2020, a month that may be considered one of the most fruitful months in the history of Chainlink. During that month, Chainlink reached a new all-time high by hitting the price of $19.1 – an all-time high 420% higher than its last one. The coin’s price fell about 50% later that year, only to continue its uptrend in early 2021 – a year during which the coin was set to break its own records. Only 4 months after, in May 2021, following the bullish crypto period the coin reached a new all-time high with a price of $52.20; leaving investors with 11000% of gains in a matter of only 2 years.
Chainlink (LINK) Price Prediction 2021
As mentioned before, the first half of 2021 has an unforgettable experience for Chainlink, a coin that saw a 339% increase from the beginning of the year. Unlike most cryptocurrencies, Chainlink has experienced more time on an upward trend rather than on a downward trend, meaning that it has seen continuous growth over the last couple of months.
According to forecasts done by PrevisionBitcoin, Chainlink might continue its growth steadily, potentially reaching the price of $94.61 by the end of this year. At the time of writing, Chainlink has a price of $18.65, and closing the year at the above-mentioned price would mean a 407% increase during the second half of 2021.
Another prediction done that may seem like a pessimistic one is that of WalletInvestor. This prediction site expects the coin to close this year with a price between $40-$45, an increase of 117% compared to the current value of Chainlink. Considering the potential and utility of this coin, its price may reach new heights by the end of this year. Additionally, WalletInvestor estimates that the coin might reach its current all-time high exactly one year from now, potentially hitting the price of $52 per coin.
Chainlink (LINK) Price Prediction 2022
Chainlink provides a unique solution to one of the biggest problems presented to blockchain and smart contracts. Being this innovative and revolutionary makes Chainlink a coin of the future that is yet to receive widespread implementation. Because the coin is very new to the cryptocurrency market, the value it holds maybe just a portion of what its true potential value is.
As stated by DigitalCoinPrice, the year 2022 might be a rollercoaster for the coin. Chainlink is thought to reach the price of $40.75 by February 2022 and as high as $42.47 by August later that year, however, this price may fall back to $35.26 by the end of the year – potentially making the year 2022 not a good year for Chainlink. According to Longforecast, Chainlink might possibly close the year 2022 with a price of $47.69, a more optimistic prediction when compared to that of DigitalCoinPrice.
A very optimistic forecast is that done by CryptoNewsZ, predicting that Chainlink might jump over the price of $75 at the beginning of 2022, seeing an increase of 240% from today’s price and breaking its current all-time high of $52.20. If we compare this prediction to that of GovCapital, we notice that GovCapital predicts lower prices for the coin at the beginning of 2022, stating that Chainlink might hit $40 by the end of January 2022. However, GovCapital forecasts that the coin might close the year with a price of $61.53, a prediction that is quite similar to that of CryptoNewsZ.
According to most of these prediction websites and experts, Chainlink may continue its rapid growth and it might likely break its current all-time high in the near future.
Chainlink Price Prediction For Next 5 Years
This specific cryptocurrency serves as a bridge between the world of blockchain and the real world. Because of its utility, this cryptocurrency has the potential to be implemented in nearly every industry that needs a bridge in order to connect itself with the wonders of blockchain. DigitalCoinPrice predicts that in 2025 Chainlink’s price can reach as high as $64. By the end of 2026, the coin might reach the price of $85.66, breaking its current all-time high and seeing a 4x increase in its price. According to Coinpedia, we might see Chainlink sitting between $135-$210 after a 5 year period, making $150 the average price that the prediction website gives the coin.
According to GovCapital, the price of Chainlink may skyrocket throughout a five-year period, possibly hitting prices as high as $246 by June 2026. This would mean a 1016% increase in the price of a single Chainlink coin.
What Potential Factors Can Affect the Price of Chainlink (LINK)?
At the time of writing, Chainlink is undoubtedly one of the most revolutionary cryptocurrencies in the crypto market. Yet, just as every cryptocurrency, how well the coin does on the market is heavily affected by many factors. The main factors that can affect the price of Chainlink are Implementation, Supply, and Uniqueness.
Implementation
As already stated, cryptocurrencies have a long way to go before reaching their true potential. Being so early in their development, many see them as a project that is not credible enough for them to invest in. Nevertheless, there are many important people who are supporting this market, be that privately or publicly. This is creating a ripple effect on the others who are hesitant about cryptos and pressuring them into using and accepting cryptocurrencies as a form of payment or as a solution to an existing problem that their business is facing. When it comes to Chainlink, its super-efficient way of connecting the off-chain and on-chain data should serve as a reason for others to implement it. Big centralized companies such as Google Cloud and Oracle, and decentralized ones such as Matic Network and Hedera Hashgraph have begun the process of implementing Chainlink into their systems. With more partnerships like these, the price of Chainlink may reach crazy heights in the upcoming years.
Supply
Supply is one of the main factors that affect the price of a particular cryptocurrency. To put it into perspective, Bitcoin has a supply of 18 million while Dogecoin has a supply of 129 billion; if Dogecoin had the market capitalization that gives Bitcoin the price of $30,000, it would be sitting at a price of $4.30. Therefore, the lower the supply, the bigger the impact every investment has on the price of that particular coin. As for Chainlink, it has a maximum supply of 1 billion, 43% of which is circulating. This relatively low supply makes it easier for the coin to increase in price.
Uniqueness
Another very important factor when it comes to the future of every cryptocurrency is its utility and uniqueness. At the time of writing, there are more than 10,000 cryptocurrencies on the market, and more than half of them are obsolete, meaning that they are not as efficient as they promote themselves to be. Along with these many cryptocurrencies comes competition. Since Chainlink is a very unique coin and perhaps one of the most useful coins in the whole market at the moment, makes it a cryptocurrency full of potential for the years to come. Uniqueness and utility have proved to be game-changing factors for many cryptocurrencies and this may also be the case with Chainlink.
Crypto Academy Chainlink (LINK) Price Prediction
At Crypto Academy, we try to cover all the factors that could affect the future of a certain cryptocurrency when we make our predictions. As for every cryptocurrency in the market, the future of serious projects like Chainlink also depends on the numerous factors that we mentioned above. However, of course, projects like this one tend to stand out from the rest.
Chainlink (LINK) Price Prediction 2021
We predict that Chainlink might close the year 2021 with a price of $191, a price that is 768% higher than that of today; considering how useful this cryptocurrency is and the fact that it is one of the only bridges that connect the real world with that of blockchain.
Chainlink (LINK) Price Prediction 2022
As for the year 2022, we believe that this cryptocurrency might continue somewhat of a bullish run. Nevertheless, this may also depend on the performance of the whole market. If the overall market performance throughout 2022 is not that bullish, Chainlink is likely to follow. On a bearish note, Chainlink might end 2022 with a price just above $200; however, on a bullish note, this cryptocurrency may reach a trading value between $230-$250 before the end of the year.
Chainlink (LINK) Price Prediction 2023
2023 might be a very steady year for this cryptocurrency. Chainlink is likely to be characterized by small price movements throughout the whole year, possibly ending the year with a price of around $290.
Chainlink (LINK) Price Prediction 2024
Chainlink has big plans ahead, which can be seen with the release of Chainlink 2.0. In their whitepaper, the team behind Chainlink signifies the importance of seven key areas: Hybrid Smart Contracts, Abstracting Away Complexity, Scaling, Confidentiality, Order-Fairness, Trust-Minimization, and Incentive-Based Security. If the team achieves these goals as they plan to, Chainlink may reach a price between $320-$360 by the end of 2024.
Chainlink (LINK) Price Prediction 2025
For the year 2025, our forecast shows that Chainlink might reach a trading value as high as $410. Given its utility, its scarcity, and its plans, its price may even hit $450 by the end of the year.
Chainlink (LINK) Price Prediction 2026
As we mentioned many times before, the cryptocurrency market is still very young and its true potential is yet to be seen. Taking into consideration the rate of implementation that is happening between crypto and real-world applications, it is highly possible that by 2026 most of the world’s industries may be cooperating with this industry. This would give Chainlink space to test its limits. That being said, we believe that in 2026, Chainlink may finally surpass the $500 milestone.
FAQ
What companies have Chainlink partnered with?
Some of the companies that have partnered with Chainlink are:
- Google Cloud
- Oracle
- DApps Inc.
- Matic Network
- Reserve
- Hedera Hashgraph
Where to buy Chainlink (LINK)?
You can find Chainlink on major cryptocurrency exchanges such as Binance, Coinbase, Huobi, etc
Is Chainlink (LINK) a good investment?
According to many experts and prediction websites, investing in Chainlink might prove beneficial for the investor in the short term and the long term.
Is it possible for Chainlink to hit $1000 anytime soon?
Based on our forecasts, Chainlink may hit the price of $400 in the near future; however, $1000 might be a bit of a long shot.
Read more: Uniswap Price Prediction 2021 and Beyond – Is UNI a Good Investment?
Takeaways
- Blockchain technology has one major drawback and that is its inability to access off-chain resources.
- Chainlink aims to solve this problem by using Oracle nodes.
- Chainlink does this through three contract types and they are Aggregated Contracts, Reputation Contracts, and Order-Matching Contracts.
- LINK experienced a 360% price increase during the last bull run and a 50% price decrease during the last market correction.
- The price of Chainlink (LINK) is heavily affected by its supply, implementation, and uniqueness.
- CryptoAcademy predicts that the coin might close in the year 2021 with a price of $191.39.
- Because Chainlink provides a unique solution to the above-mentioned problem, it has reached partnerships with companies like Google Cloud, Oracle, and Matic Network.
- According to many websites and experts, now may be a good time to invest in Chainlink.