Decentralized finance (Defi) looks like it will be the future of the finance world overall, and Chainlink is playing a critical role in this field. Chainlink’s role is to connect smart contracts with data from the real world.
Chainlink is a decentralized oracle network. In the world of cryptocurrency, an oracle network is a data feed that connects blockchains to off-blockchain data. This means that an oracle will communicate outside information to the blockchain, serving as a connecting bridge between the real world and blockchain.
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For example, an oracle can retrieve weather data to help calculate insurance premiums or location data to use in supply chain tracking. With Chainlink, there is no centralized source from where data is delivered. So, the Chainlink oracle is an entirely opened network of nodes where anyone can participate in running their own node.
Why Should You Pay Attention To Chainlink (LINK) In 2021 and Beyond?
As per Coinmarketcap Chainlink right now is ranked as the seventh cryptocurrency and is trading at the moment at $12.18. Its market capitalization is $4,888,874,512. Chainlink reached its all-time high of $19.85 on August 16, 2020.
Chainlink all-time price movements. Source: Coindesk.
But, why is Chainlink so attractive, and why should one pay attention to this coin?
Well in 2019 Chainlink was the highest crypto performing asset with a nearly 500% return on the investment outperforming Bitcoin which had a 100% return on the investment in the same year.
Chainlink (LINK) 2019 And 2020 Price Analysis
Chainlink started 2019 at $0.30 per coin to peak at $4.17 per coin in June 2019. Then it ended the year at $1.80. The coin proved itself as a volatile asset, with frequent price movement during the year, giving investors many opportunities to make profits. 2020 was a similar year for Chainlink, but slightly a better one as the coin reached its all-time high in this year. Although the Coronavirus Pandemic had its impact causing cryptocurrencies to drop drastically in price, yet it could not stop Chainlink’s growth.
Chainlink entered 2020 at $1.70 and then it grew all the way to 4.90 by early March. Again it fell back to 1.70 to recover in April reaching $3.
A pivotal moment for Chainlink in 2020 was in June when China’s National Blockchain Network, the Blockchain Service Network (BSN) activated 135 nodes that were integrated with Chainlink price oracles. At this time the price started surging upwards. Precisely when the news was announced on July 7, 2020, Chainlink’s price experienced a 15% growth within the day going from $4.87 to $5.60, setting a new price record as the coin had never reached these heights before.
The news triggered Chainlink’s price with the coin starting to gain more attention. Investors began jumping in, thus giving Chainlink a bullish momentum. Therefore, the coin broke resistance on July 6, 2020, and the price surged to $19.85 on August 16, 2020, setting a new all-time high.
In September Chainlink’s price turned bearish going down to $7.50. Then the coin climbed back again, and now it stands at $12.18.
Chainlink (LINK) Price Prediction 2021
As Chainlink’s price is showing a stable increase, most of the forecasts predict that the growth of the coin will continue. According to Digitalcoin, Chainlink will drop to$ 6.43 in February 2021 to reach a new high in June 2021, at $35.5 per coin experiencing 195.29% growth.
Chainlink (LINK) Price Prediction Chart for 2021: Source: Digitalcoin.
Moreover, Trading Beasts have a positive approach also. Although they do no predict significant growth for Chainlink in 2021, they expect a similar year to 2020 for the coin. According to their forecast Chainlink’s price will not drop any lower than $9.37 in January 2021. Then, the price could surge upwards to 15.96 at the end of the year.
Furthermore, WalletInvestor also has a positive approach. According to their forecast Chainlink will steadily continue to grow. In 2021 they predict Chainlink to reach $28 per coin.
Price line and the forecast trend line for 2020 and 2021. Source: WalletInvestor.
Chainlink (LINK) Price Prediction 2023, 2025, 2026
In terms of longer-term forecasts, most of them are also positive forecasts. So Chainlink is only expected to grow. There may be a decrease here and there, but this is normal, given that cryptocurrencies are volatile in their nature.
Digitalcoin, for example, predicts that in 2023 Chainlink will reach the price of $43.86. Further, they predict that in 2025 the coin will increase the price and will acquire $37.43. But Digitalcoin does not stop there, anticipating that the price of Chainlink will continue to rise and reach $57.05 in 2026. Meanwhile, Trading Beasts predict that Chainlink may reach $27 by 2023.
WalletInvestor goes way further, predicting that Chainlink could reach $100 by 2025. And lastly, Coinswitch has a more “realistic” approach forecasting that Chainlink could reach $13 by 2025.
Is Chainlink (LINK) A Good Investment In 2021?
Given the growth that Decentralized finance (Defi) is having and given the forecasts mentioned above, there is no doubt that Chainlink is a targeted investment in 2020. Since the estimates see coin growth, and if they turn out to be correct, then the return on the investment will be great in the future for investors that invest now in Chainlink.
What Will Be The Future Of Chainlink (LINK)?
“It seems likely DeFi will be adopted by existing financial institutions as a new financial product. Starting with access to Bitcoin needing custody solutions, evolving into the need for a blockchain abstraction layer to interact with #DeFi smart contracts”, the CEO of Chainlink, Sergey Nazarov tweeted on October 5 indicating a bright future for decentralized finance (Defi).
Based on the popularity that cryptocurrencies have gained and based on the recent growth of Chainlink, then we can say that the future of Chainlink is promising.
Moreover, Chainlink has a partnership with companies such as Google, Deutsche Telecom, Intel, Oracle, AAVE, Binance, Gartner and as aforementioned with China’s National Blockchain Services Network (BSN).
Recently Decrypt reported that the World Economic Forum and Chainlink, proposed an open-source model for connecting data sources to blockchain smart contracts.
Sergey Nazarov, the CEO of Chainlink, and Punit Shukla, the blockchain project lead for the World Economic Forum, indicate that this will be an open-source framework to help non-blockchain systems communicate to smart contracts.
So with all these collaborations and with the great potential that decentralized finance (Defi) has for the future, Chainlink can undoubtedly experience significant growth.
Chainlink is aiming to revolutionize the way financial contracts work through its decentralized oracle network, and it has a dedicated team that does their job with passion.
Chainlink is currently working with Ethereum smart contracts, but they are planning to expand their work and add more blockchains in the future.
Where Is The Cryptocurrency Industry Headed?
2020 has been a historic year for cryptocurrencies. Their volatile nature has come to the fore this year knowing that due to the COVID-19 pandemic in March cryptocurrencies experienced a drastic decline. But they returned strongly with Bitcoin as the leader marking history on November 30, 2020, reaching its all-time high of $19,860 and surpassing the previous peak of $19,783 from December 2017. Therefore, 2020 has been a fantastic year for Bitcoin, which experienced 175% growth since the end of 2019.
But, what precisely triggered crypto growth in 2020?
On October 21, 2020, Paypal decided to integrate cryptocurrencies into its platform. This was the moment when cryptocurrencies got more attention from investors, which started investing, consequently spiking up the price of Bitcoin.
Additionally, in 2020 MicroStrategy invested $425 million in Bitcoin, followed by Stone Ridge, who invested $115 million and Square too invested $50 million.
Besides, on December 10, 2020, Bloomberg reported that Massachusetts Mutual Life Insurance Co. has purchased $100 million in Bitcoin for its general investment fund.
The fact that an insurance company like MassMutual, which has a tradition of 169 years, has decided to invest in cryptocurrencies and the fact that companies like Paypal have launched crypto services, is a clear indicator of the future of cryptocurrencies.
Lastly, it is essential to mention the developments that take place with Bitcoin because other cryptocurrencies are correlated with it, and Bitcoin usually has an impact on them. Although, Chainlink it’s not a coin that is known to have a strong correlation to Bitcoin, in 2020 both coins have acted similarly, reaching their all-time highs.
Should You Invest In Chainlink (LINK)?
With all the positive developments that have taken place for cryptocurrencies in 2020, including Chainlink, then it can be said that investing in Chainlink is a deliberate move. The potential of decentralized finance (Defi) and the above Chainlink price forecasts give a clear signal that Chainlink is on the rise and that the return on investment may be large in the future.
Although cryptocurrencies have experienced remarkable growth since the launch of Bitcoin in 2009, experts believe that they are still in the early stages of their development. Therefore, it is never too late to invest.
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