Chainlink (LINK) Price Prediction | The Bull and The Bear

As one of the leading blockchain oracle network providers, with a market cap of over $6.6 billion at the time of writing, Chainlink is one of the most discussed decentralized platforms. The ecosystem’s token, LINK, is, too, both promising and unpredictable.

LINK was launched as an ICO for $0.11 in 2017 and had a slow start. By 2018, the token value barely hit the one-dollar mark only to drop back down shortly after.

In 2020, however, LINK picked up unexpectedly, way before the crypto bull run. The prices grew up to $17 and the momentum has been positive up till April - LINK even hit its all-time high of $44.40.

The token did not only follow the trend of most Chainlink predictions but far outperformed the most optimistic estimates (the community hoped to hit $1.50 in 2020).

In this post, we will take a look at historical data and use mathematical modeling to derive bias-free Chainlink price predictions.

Since the market is so volatile and applying traditional speculation tools in crypto is only partially effective, it’s natural to wonder whether there can be an accurate LINK price prediction.

However, if you research best-performing altcoins, you’ll notice that the fastest-growing cryptos have both common traits (pointing at why they outperform everyone else) and behaviors (hints at how prices can change over time).

In Chainlink’s case, we can already rely on four years of historical data to discover price fluctuation patterns and make a LINK coin price prediction.

While a lot of Chainlink predictions are FOMO-induced and shortsighted, paying attention to market forecasts has undeniable benefits:

  • Predictions give investors more market awareness. To discover price trends for altcoins, experts carefully analyze the movements of top performers, as well as Bitcoin. By following LINK crypto price prediction news, you will know the market cycle history and discover new promising projects that will help diversify your portfolio.
  • Predictions can become self-fulfilling prophecies. LINK crypto price prediction tools like technical analysis can, to a degree, move the market. If enough investors believe a technical signal, the community will steer the market in a direction that matches the prediction.
  • A Chainlink crypto price prediction takes the bigger picture into account. While some forecasts are as precise as crystal balls, others can anticipate market movements fairly precisely, because of a broader field of view. Conscientious forecasters take industry news, regulatory updates, and technology trends into account to determine how global trends and events impact the crypto market and Chainlink specifically.

Chainlink is a decentralized oracle network that integrates off-chain data into smart contracts. The platform aims to solve the connectivity challenge faced by smart contract developers.

Since most systems rely, to some extent, on centralized data sources (social media news, stock price updates, etc.), the inability to integrate this information into the blockchain limits the range of smart contract applications.

Chainlink is disrupting Ethereum blockchain by supporting it with a decentralized oracle network - a bidirectional network that puts on-chain and off-chain systems in communication. DON (decentralized oracle network) is decentralized - maintained by thousands of oracle nodes that verify the validity of data provided to the blockchain and are incentivized for fetching true information to the network.

To understand the technicalities behind Chainlink, take a look at the platform’s original white paper.

The golden rule when investing into crypto is “Back the company, not the token”. That’s why most Chainlink adopters support the network as a way to share its values and contribute to its growth. That’s why they are eager to see the platform through and aren’t bothered by price fluctuations.

Still, if you are worried about price volatility and are wondering whether LINK is not just another 4chan meme, let’s think of sensible reasons that explain volatility in the token price:

  • No way to predict the current state of the project. Unlike Ethereum, the Chainlink team didn’t release a roadmap that helps track progress. As a result, the community can’t anticipate project-related news so whenever an update comes out, prices fluctuate.
  • Security exploits lead to volatility. Chainlink can be targeted as a way to destabilize Ethereum (the development team uses the Ethereum blockchain as the backbone for the project). Each security attack on the system undermines the community’s desire to contribute and fuels price fluctuations.
  • No mass adoption. Since there are fewer Chainlink holders compared to BTC or ETH investors, each of them will have a higher impact on the system.

Chainlink is one of the more volatile crypto assets; with an overall standard deviation of 9.41. Overall, it’s considered a risky investment. The minimum price of the token is: $7.32. The all-time high is: $52.99.

To understand how Chainlink prices changed over time, let’s examine historical data:

Year

Chainlink Average Price

2017

$0.17

2018

$0.32

2019

$2.24

2020

$14

Although token prices fluctuated each year after the network launch, the overall trend is positive and highly upward-driven.

In the last five years, the token price grew by 80 times ($14 at the time of writing), providing LINK investors with high returns, unbeatable by traditional investments.

To understand whether crypto experts succeed at timing the market, let’s take a look to which extent Chainlink predictions came true.

2019

In 2019, experts were positive on the coin's growth since Chainlink partnered with SWIFT. Some predicted that LINK will peak at $3.9 - the majority believed that by December 2019, LINK will be worth. $2.1

In reality, LINK outperformed set expectations, peaking at $4.95 by the time it was listed on Coinbase.

2020

WalletInvestor believed that 2020 will be rewarding for Chainlink, estimating that LINK will cross the $10 mark. Some predictions weren’t as grounded - BitBoy Crypto believed that LINK will flip with Ethereum and estimated prices between $800 and $2,000.

As history shows, moderate Chainlink predictions turned out to be true - in 2020, LINK was worth up to $11.14.

Chainlink is compelling to crypto investors because it solves a fundamental problem of smart contracts - connecting external data and the blockchain. At the moment, smart contracts can’t benefit from real-time data feeds because the information they get from centralized oracles is not validated.

Chainlink introduces a secure solution to the problem and removes a single point of failure with a decentralized oracle network.

Relying on the network of independent nodes that provide the blockchain with true real-time data is compelling to institutional investors who can ensure the security of high-volume transactions.

At the moment, Chainlink is a part of ambitious projects in finance, law, and other industries - here’s a quick rundown of the most notable partnerships:

  • Partnership with the SWIFT network to bring smart contracts into traditional banking.
  • OpenLaw uses Chainlink to source reliable data for legal agreements issued as smart contracts.
  • Accord Project, too, focuses on introducing oracle data to smart contracts.
  • ZeppelinOS uses Chainlink to supply “Scheduler” and “Marketplace” with reliable oracle data.
  • Deutsche Telekom is a Chainlink node operator, Swisscom (another telecom giant) runs a node for processing DeFi data.

The growing interest in decentralized oracles across a wide range of industries is a marker for Chainlink’s potential and a reason to bet on token growth.

LINK is a highly volatile token, with prices unpredictably surging to new highs only to hit a low a few months later. What factors determine these fluctuations? We focused on 4 key components influencing LINK’s volatility.

First-mover advantage

As a first-mover in the Oracle space, Chainlink will be a go-to platform for developers interested in integrating reliable data feeds into their projects. While competitors start to emerge (Tellor or MakerDAO), no one beats LINK in terms of exposure.

As a first-mover, Chainlink is readily accepted by centralized institutions in finance and other fields. In fact, the number of institutions eager to integrate the decentralized oracle network into their operations is growing rapidly, from T-Systems in telecom to five Korean banks (Shinhan Bank, KEB Bank, IBK Bank, CenterPrime, NH Bank) rolling out strategies for Chainlink integrations.

Increasing adoption and utility

The network effect is the driving force for LINK price increases. At the moment, the network has over 500 interactions with finance, law, and other projects.

According to LinkMarine, the community of LINK investors and ecosystem participants, the platform is used by:

  • Over 200 DeFi projects
  • 84 blockchain networks
  • 43 data providers
  • 33 infrastructure providers
  • 22 NFTs
  • 24 gaming platforms.

As for now, Chainlink is backed by a wide (500,000+) community of token holders. Increased network adoption and token utility should draw more attention to the platform, potentially culminating in price increases.

Chainlink is not headquartered in the United States, hence it’s not registered with any of the local regulators. While the Chainlink price prediction 2022 might not be directly affected by regulations, prices will fluctuate whenever a crypto-related regulatory decision is made. For example, the Chinese regulatory crackdown that unfolded in June, led to a sharp decrease of LINK prices (down from $21.67 to $17.38).

While Link is one of the widely-known altcoins, the technology behind the project is complex and requires a solid grasp of smart contracts. Hence, there’s an entry barrier for investors.

However, the community is doing its best to explain the application and benefits of Chainlink. The platform’s Reddit thread features Beginner Guides that introduce people to the network. Also, the development team regularly writes education content on Yahoo!Finance and other mainstream financial media to attract more backers to the network.

As the general public’s understanding of Chainlink increases and more people realize the value of decentralized data feeds, token prices could go up.

Positive and negative news

Chainlink prices correlate with the announcements made by the development team. Prices spike when the token is listed on new exchanges or large-scale integrations are announced (in 2020, news about Oracle, Google, and SWIFT partnerships helped the token reach then all-time high of $6.49).

On the other hand, negative news has the power to destabilize LINK prices. In September 2020, ETH losses driven by a Chainlink security exploit made headlines and led to prices falling below $10.

Market Dominance

At the moment, Chainlink has a strong presence in the crypto market. It ranks 15th among digital assets by market capitalization, has a daily transaction volume of over $471,200,000, and a circulating supply of over 440 million tokens.

The growth in user base will lead to higher market capitalization and make Chainlink a force to reckon with. If increased adoption and public awareness put Chainlink among crypto leaders by market capitalization and transaction volume, token price increases should be inevitable.

The total supply of coins limit

At the moment, Chainlink has a fixed supply of 1 billion. By introducing a coin cap, the development team ensures digital scarcity and prevents LINK from inflation. At the moment, over 440 million tokens are in circulation.

In the future, as Chainlink will be nearing the cap, the demand for LINK should get higher - that’s why many estimate token prices to grow as well.

Timing the market is not easy, especially considering the fact that Chainlink is not following the movement of BTC. In fact, the token is known for being unpredictable, with prices surging when the community least expects them to (as was the case in April 2021).

Having considered that, is relying on LINK crypto price prediction data reasonable? While it gives investors a broader view of the market, it’s not the only way to make intelligent financial decisions.

Here are a few alternative approaches for deciding whether you want to back Chainlink.

Dollar Cost Averaging

Simply put, dollar cost averaging is the strategy of buying assets in small batches over time rather than investing in high amounts at once. It’s a good approach for novice investors who lack the experience and insight needed to time the market.

The key benefits of using dollar-cost averaging to invest in Chainlink are:

  • Takes the emotional component out of investing - instead, you can stick to a well-defined routine that lets you maximize returns over time.
  • An opportunity to benefit from market dips.
  • Endorses a long-term investing mindset leading to more stable returns.

Chainlink is a project with strong fundamentals. It has an established user community, as well as a wide range of integrations. Also, the project is not directly affected by governmental regulations, thus, it’s fairly stable.

Since the platform provides users with undeniable value (real-time access to fact-checked data and independence from decentralized oracles), Chainlink doesn’t appear to be a hype-induced fad. Thus, regardless of the market cycle, backing up an innovative idea makes sense for LINK investors.

Buy the rumor, sell the news

Keeping an ear to the ground and monitoring network updates is a smart strategy for timing the market. Similar to traditional investment, the “Buy the rumor, sell the news” principle stays true to Chainlink.

To catch wind of updates and track the market sentiment and Chainlink crypto price prediction data, use the following resources:

Buy low, sell high

To avoid panic selling and buying, remember to use dips for allocation and highs for selling, not vice versa. While it seems obvious, it’s common for investors to follow hype waves when buying tokens and sell as soon as the price goes down, making investors see losses in their portfolios.

The understanding of market cycles will help you persevere through dips and wait for the next high to sell tokens. Keep in mind that catching the market at its peak takes time and experience - it’s easy to miss the right window for selling.

To that end, expert forecasts and technical analysis are helpful tools in Chainlink prediction and timing your exit.

Do Your Own Research

Finally, before you commit to Chainlink, make sure you have a formed opinion of the platform, the underlying technology, applications, and benefits. Here are a few helpful resources for getting to know the network:

  • Chainlink whitepaper that explains the vision of the platform
  • Chainlink 2.0 whitepaper that dives deeper into the upcoming network update.
  • Tutorials published by the development team.
  • Chainlink accounts on Telegram and Twitter
  • The team behind the project.

Before supporting Chainlink, make sure you resonate with the cause of the project, share the values of the team, and are passionate about the underlying technology. Using price trackers is another way to DYOR, namely to track volatility and time decision-making.

Before investing in Chainlink, make tracking asset prices a habit. By keeping tabs on market fluctuations, you learn how to:

  • Spot markers for bear and bull cycles
  • Timing the market and finding buy/sell opportunities
  • Tracking profits and losses.

To monitor Chainlink prices, consider using a price tracker. Redot is an easy-to-use tool for keeping tabs on the crypto market. Investors and traders can track Chainlink crypto price prediction data based on the following criteria:

  • Historical price data.
  • Trade history
  • Volume.

Other than reliable price tracking, Redot provides traders with redundant infrastructure and secure digital asset custody. It’s a feature-rich platform for keeping track of coin prices and making the most out of digital asset trading and investment.

Thus far, 2022 has been a turbulent year for crypto. With a crazy bull run for Bitcoin in 2021 followed by a bearish market in 2022, it’s not easy to predict year-end prices for most cryptocurrencies.

Nevertheless, crypto industry leaders make LINK crypto price prediction statements based on analyzing technical indicators.

Wallet Investor predicts that, by the end of the year, Chainlink could decline before it starts its recovery in 2023. The estimation is grounded in the growing amount of interest in the network’s interoperability project.

Trading Beasts shared month-to-month LINK crypto price prediction data: they believe that the token should be at $15 by August 2022.

Let’s take a look at LINK crypto price prediction data for 2022-2023 by industry experts.

LongForecast

According to LongForecast, in 2022, the minimum price of Chainlink will be $6.47, while the maximum will hit $18.98.

In 2023, the platform predicts price fluctuations with a steady price growth to $19.29 by the end of the year.

Libertex

According to Libertex, Chainlink prices will steadily rise throughout 2022 - by the end of the year, they will reach $44.

Most crypto analysts believe that Chainlink will enter 2025 with stability and a bright future. Let’s take a closer look at the estimates for year-end LINK prices.

Digital Coin Price

Based on fundamental and technical indicators, Digital Coin Price analysts expect Chainlink to reach $52 in 2025 and stay on the upward trend. They label a token a “profitable investment”.

WalletInvestor

WalletInvestor forecast also expects Chainlink to be a profitable investment. Crypto experts believe that the token could reach an all-time high of $100 by the end of the year.

Generally, LINK price prediction data seems positive, with some crypto enthusiasts estimating it to break $500. However, they are highly speculative in nature and have no scientific basis.

There are several reasons why crypto experts don’t bother with long-term price estimates:

  • Financial uncertainty. By 2050, the monetary system can be drastically reformed, making long-term LINK crypto price prediction data irrelevant or obsolete.
  • Adoption factor. LINK prices depend heavily on how widely the decentralized oracle network will be deployed, as well as on the activity of the platform’s key competitors: Tellor, UMA, and others.
  • Regulations. It’s nearly impossible to predict global regulatory policies on the scale of 30 years - yet, they drastically affect the market and can either drive or tank crypto prices.

While the market sentiment about the future of Chainlink is positive, the community is cautious to share a far-fetched LINK price prediction.

Conclusion

Chainlink is one of the most innovative blockchain projects on the market, getting traction in the media, interest from investors and institutions. Considering that decentralized oracles have a wide range of applications, there’s no reason to doubt the platform’s utility.

Since its launch, Chainlink has been steadily growing its user base. At the time of writing, there are over 536,100 unique LINK holders. The token has anticipated the 2021 crypto boom, peaking faster than other altcoins or BTC.

Most crypto experts consider LINK a profitable investment - however, you should make an informed decision at your own responsibility and risk instead of fully trusting link coin price prediction data. Before making a choice in favor of Chainlink, run a technical and fundamental analysis, analyze historical price data and, above all - stay reasonable.

FAQ

Is Chainlink (LINK) a good investment?

While Chainlink is highly volatile, technical indicators and fundamental analysis describe it as a potentially profitable investment.

Who created Chainlink?

Chainlink was launched in 2017 by Sergey Nazarov and Steve Ellis, the founders of the former company called SmartContract and the authors of the original whitepaper.  Ari Juels is Chainlink’s advisor.

What are Chainlink Oracles?

An oracle is middleware software that integrates real-world data into the blockchain. These entities query, authenticate, and verify external information before relaying it to a closed system.

Is It Better to Trade or Invest in Chainlink?

Both investment and trading are viable ways to profit from Chainlink. On the one hand, trading helps take advantage of high volatility. On the other hand, inexperienced traders might find it challenging to make a correct LINK price prediction.

In comparison, investment doesn’t require as much vigilance and experience. It’s fairly straightforward: allocating tokens and waiting for another major bull run is all it takes.

As a rule of thumb, you should choose between trading and investing depending on your timeline, experience, budget, and readiness to commit to watching the market.

Should You Invest in Chainlink in 2022?

Chainlink’s adoption has been growing increasingly. According to market indicators, now is a good time to invest in LINK.

*This communication is intended as strictly informational, and nothing herein constitutes an offer or a recommendation to buy, sell, or retain any specific product, security or investment, or to utilise or refrain from utilising any particular service. The use of the products and services referred to herein may be subject to certain limitations in specific jurisdictions. This communication does not constitute and shall under no circumstances be deemed to constitute investment advice. This communication is not intended to constitute a public offering of securities within the meaning of any applicable legislation.

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