What is Chainlink?
Chainlink is a blockchain-based decentralized oracle network that helps connect the real world with smart contracts. It is built on the layer one solution Ethereum and helps off-chain data sources like bank payments, APIs, and data feeds to communicate with on-chain smart contracts.
For example, a bank payment will only be completed when the decided amount of Ether is moved into a smart contract within the given date. Smart contracts are connected with real-world systems with the help of Chainlink to make this possible.
Chainlink was first introduced in 2017 and has been one of the hottest topics in the crypto space since. As of January 2023, Chainlink is valued at $5.8 and has a market cap of over $2.9 billion.
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How Does Chainlink Works?
Chainlink works by forming a bridge between smart contracts and external real-world data. This happens in the following steps:
Oracle Selection: A user creates several parameters that help build the service level agreement (SLA). After an SLA is drafted and LINK tokens have been deposited in the contract, oracles are selected on the basis of the requirements.
Reporting: The off-chain oracles then utilize the Chainlink service to connect with external data sources. That helps execute the agreement and on-chain data reporting.
Aggregation Contract: After validating the data, the oracle submits the results into the main contract and sends it to the aggregation contract. The aggregation contract also verifies the answer and returns it to the user in the form of a smart contract.
Applications for Chainlink?
The crypto space is booming at the moment, and it cannot achieve new heights without Chainlink’s help. Blockchain technology has taken the world by storm, but it has some major hurdles to overcome. One of the main hurdles blockchain was facing was that everything was so disconnected from the blockchain. There was no bridge that helped smart contracts fetch data from off-chain sources.
That is where Chainlink stepped in and became the middle ground for blockchain and the real world. Chainlink can have so many applications and could help us in many aspects of life. It was built to help blockchain connect with the real world, and its applications are countless. It could help with a number of things, including global trades, p2p transactions, voting, real-time payments, etc.
Where to Buy Chainlink (LINK)?
LINK is one of the biggest cryptocurrencies and is available widely on the most reputable cryptocurrency exchanges. LINK tokens are ERC20 tokens, as the project is built on the Ethereum network. These ERC20 tokens can be bought from several cryptocurrency platforms. Some of the most prominent exchanges where LINK is available include:
Chainlink in 2021
As we can see in the above chart, Chainlink’s price started to really take off in the July of 2020 and has been through a roller coaster. The price went as high as $52.8 in May 2021 and had a major correction after it. The previous all-time high also shows that Chainlink has immense room for growth here.
Chainlink in 2022
Chainlink had an excellent start to 2022 as it started the year at $19.6, and within the first two weeks, LINK was trading at $27.5. However, that did not last long as bears took control of the crypto market, and the price kept dropping throughout the year. Chainlink lost most of its value in 2022 and is currently trading below the $6 mark.
2022 was, in general, a bearish year for the entire crypto community, and we saw most of the altcoins losing a majority of their value.
Chainlink Technical Analysis
If we take a look at the latest 1-week charts for Chainlink, we can notice that the LINK token has been struggling since it topped around $53 in May of 2021. The price is currently trading around $5.8 and has lost approx. 72% of its value since the beginning of 2022.
We can also notice the series of lower highs that LINK has been forming since hitting the $53 mark. The pattern indicates a strong downtrend, and we can see that the price is still dropping on the macro timeframes.
The $5.0 region has been acting as support for LINK, which will likely hold because this is also the area where prices faced major resistance in 2019 and 2020.
On the other hand, the level it will not break above in order to get bullish on macro timeframes is the $18.0 mark.
Chainlink Price Prediction 2023
With how things are at the moment, we can expect Chainlink to gain some momentum this year. According to the DigitalCoinPrice forecast, LINK will not continue to fall in the coming months and will try to get above $10 once again. The max level we are expecting it to touch is the $12.8 mark, where the minimum level is projected to be around $4.7.
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Chainlink Price Prediction 2024
In 2024 we can expect the market to move in a similar fashion if we don’t see any major bursts. The maximum price LINK could reach in 2024 is the $15.0 mark, while the lowest level to watch that year is the $12.3 mark.
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Chainlink Price Prediction 2025
In the year 2025, we are expecting Chainlink to move between $17.0 and $21 throughout the year. However, there are several factors that could affect the market in this time period, and we might see some different numbers in 2025.s
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Chainlink Price Prediction 2030
When it comes to long-term predictions, it is hard to estimate where Chainlink will stand in the year 2030. A lot will change by 2030 as the financial structure will go throw more innovations, and there will be new technologies at our disposal.
One thing where LINK would have no problem is the token supply. Unlike Bitcoin, Chainlink has a total supply limit of 1 billion.
The value of Chainlink in 2030 will also depend a lot on how its technology will fair and applications will improve. Right now, it looks like Chainlink will have a significant role to play in the crypto space in the years to come. If Chainlink keeps up with the pace and continues to provide value, it is only safe to assume that the coin will also fare well in the long term.
Conclusion: Does Chainlink Have a Future?
Chainlink is one of the most talked-about projects in the crypto space, and for all the right reasons. The smart contracts technology combined with Chainlink’s Oracles can be revolutionary. It can change the way business is done in the world currently and can also inspire a new financial system. All this depends a lot on how this technology will fare in the real world.
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Frequently Asked Questions – FAQs
Chainlink is one of the top projects in the crypto space with solid fundamentals. Currently, the price seems to be at the bottom, which is considered a good entry point. If the crypto space continues to thrive, we will see LINK reach new heights in the future.
Chainlink and Ethereum are two crypto projects with immense utility, but they cannot be compared with each other directly. Both cryptocurrencies have had their fair share of ups and downs, but they promise a solid future. In terms of market cap, ETH is only next to Bitcoin, whereas LINK is trying to get back in the top 10 once again.
LINK is currently trading around the $5 mark and is going through a bear market. Considering LINK was trading above $50 in 2021, it seems like a good enough time to buy LINK. However, the risks are always there as the crypto market is highly volatile.