At the time of writing this 27/11/2021, Chainlink (LINK) is just coming out of a long period of consolidation. It is still a matter of speculation at this point, to see whether LINK bounces back into the hierarchies of top cryptos, by improving its market capitalization, trading volumes, or any other relevant metrics.
LINK’s current growth trajectory is driven by the top 1000 ETH wallets, which are key in determining the on-chain ecosystem for the LINK technology. The more these top wallets trade, the higher the trading volume which tends to push the token price slightly upwards.
Aside from the push by the whales, LINK has also been on a partner-finding mission of late, making valuable business arrangements whilst simultaneously further developing the underlying technology behind LINK. All these factors in combination are projected to drive upwards the price of LINK, both in the short term and in the long term.
What is LINK’s value proposition? A Look at Some Features
LINK’s value proposition is to aggregate all of the world’s data on an accessible public blockchain. Being an oracle network, some of the things that LINK has strived to accomplish include establishing robust connectivity between the smart contracts on the blockchain, and the various sources of external data and information; APIs, payment systems, data feeds, and databases.
LINK straddles off-chain and on-chain systems, a feature that allows the smart contracts on its blockchain to execute contractual agreements that would otherwise require the presence of a third party in the physical world. Chainlink has earned a reputation of being the world’s largest decentralized oracle network that uses smart contracts to complete transactions and community relations in crypto exchanges, DeFi systems, gaming environments, and insurance DAOs, all of which have lent themselves to blockchain technology.
LINK is rapidly becoming the go-to provider for all oracle solutions. The most key partnerships with LINK have come in the form of NFT marketplaces and DeFi protocols, both of which are industries on a similar exponential upward trajectory as Cryptocurrencies and blockchain technology.
LINK already enjoys working relationships with Google, Bitcoin, Celery Network, Hyperledger, and a host of other reputable institutions. New NFT partnerships are being materialized with marketplaces like Kephis Gallery. The LINK protocol has also made partnerships with DeFi protocols such as Trava Finance, Solipay, and Project Oasis on the Binance Smartchain Ecosystem. All these provide to users variations of real-time loans, lending pools, and liquidation from global financial markets, using oracles.
LINK Infrastructure Upgrades
LINK has also recently entered into a partnership with Gitcoin Grants, seeking to further develop the LINK infrastructure on the ETH network. Considering the fact that the level of demand for the token depends on the number of nodes using the off-chain technology architecture, it follows therefore that such a development would increase the inherent value of the LINK network.
LINK co-founder Sergey Nazarov adds that linear staking capabilities are amongst some of the infrastructure being enhanced on the technology, a move set to bolster the level of security on the entire LINK platform.
LINK also provides a protected off-chain computational capability feature which has allowed developers to increase the capacity on and build more versatile smart contracts, with wider bandwidths for automation, scale, and randomness.
This, together with the accountability format provided on-chain, has allowed LINK users to actively validate both real-time and historical movements of the LINK price feeds. A robust set of monitoring tools also comes conjoined with the entire ecosystem.
LINK Future Projections
The recent investments that LINK has made in its partnerships profile and infrastructure setup will likely see the price gradually climb over the next few weeks as the inherent value of the token has increased. It is only natural, bar a major market correction, that the time, energy, and resources invested into the token will result in a more robust infrastructure, which in turn should push the token price higher.
The recent consolidation period has however seen LINK drop out of the list of the top 15 biggest Cryptocurrencies by market capitalization. The improvement of the underlying technology has however also seen an increased level of on-chain activity, regardless of the corresponding price drop.
Trading volume on the platform has however gone over the $2 Million mark, making LINK more popular by trading volume than Shiba Inu (SHIB) and Crypto.com (CRO) tokens combined. This upward rally has seen bullish analysts and speculators set a $38 price point target for the token by the end of 2021, up from its current price of $25. This is mostly deriving from a previous similar rally undertaken by the token from 22nd September to 10th November, topping off at the $38 price mark.
Bullish investors have further gone ahead to project a $45 price point by the end of 2022, and $100 by 2025, if the token is to keep its current forward momentum.
According to market observers and analysts, the recent drop in the price of LINK could also be connected to the price of BTC, which has also precipitated the drops in prices of a host of different other altcoins.
A source of concern however is that a large chunk of LINK is held by whales. Every time these Top 1000 ETH whales go on a buying spree, the LINK price has seen an uptick, which generally increases the market valuations of the token, which also brings to attention the peculiar trend where the currency value decreases, as other key metrics remain healthy and green.
So far, LINK enjoys a healthy balance of resources devoted to its future development, as well as a working technological infrastructure that already places it amongst the biggest Cryptocurrencies to watch.
Acting as both a smart contract platform and a blockchain ecosystem, LINK is emerging as the foremost way, in a data-heavy technological future, through which credible verifiable data can be speedily and efficiently delivered from one entity to the next, through the blockchain. The fact that only a limited supply of LINK will ever be mined, together with the continual improvements on its infrastructure and partners, will only ensure that the LINK token continues to rise in both value and utility.