Chainlink Price Index - Real Time Price Graph
With the increasing popularity of smart contracts, Sergey Nazarov and Steve Ellis observed that such contracts can only rely on data that is on-chain and there's no secure way to connect them to external sources of information. To overcome this limitation of smart contracts, they founded the Chainlink project which relied on a network of decentralized oracles to feed accurate data to smart contracts in a secure way from external sources.
LINK is the official token or cryptocurrency of the project which is mainly used to reward the node operators who verify and provide the data through secure APIs.
Where to Buy Chainlink?
Being one of the most promising cryptocurrencies, more and more brokers are now offering LINK token on their platforms. It is recommended that you put your trust in a reputed crypto broker or trading platform with a long history of transparency and honest dealings. Such trading websites typically have strong compliance with all the global and regional regulatory setups in place to secure users' interest. This is why it is important to choose your trading platform wisely.
A Brief History on the Price of Chainlink
We cannot develop a complete understanding of Chainlink's current price and make well-argued future predictions until we review the history of the project. From its cryptocurrency to the global events that have shaped the present climate of markets. It is necessary to understand the external events that made the currency possible and how today's supply and demand dynamics affect the price movement of Chainlink (LINK).
Key News for Chainlink
One of the most significant challenges that led to the invention of Chainlink was the absence of a secure infrastructure that could feed off-chain data to on-chain smart contracts. As the bottleneck continued to hamper the growth of adoption of smart contracts, Sergey Nazarov and Steve Ellis came together to create an innovative solution based on a network of decentralized oracles that are able to connect smart contracts to the real-world data in a secure manner.
The biggest win for the Chainlink project came in June 2019 when Google integrated Chainlink into its approach of smart contract adoption, which allows Google Cloud users to connect to BigQuery with the help of Chainlink. Apart from the sheer reach of the project, it was also a victory on the PR front as the project got a massive boost and has remained in the news cycle since then.
Today many smart contract firms, including financial institutions and banks are taking a hard look at the Chainlink project to integrate it into their smart contract adoption. Some businesses have already done so and their seamless integration has enabled them to achieve more with their smart contracts.
In order to provide a chronological insight into the development of the Chainlink project and the price of its token called LINK, we have created a year by year timeline that will enable you to understand the impact of currency since its inception.
After Sergey Nazarov and Steve Ellis founded the Chainlink project, the Initial Coin Offering or ICO was held in September 2017 which raised a whopping $32 million. The amount of initial investment in such a new project showed the faith investors had in Chainlink right from the beginning. The total supply of LINK tokens was capped at 1 billion. It is a native cryptocurrency to the Chainlink's oracle network and is used to reward node operators.
LINK tokens are rewarded based on reputation and node operators who have large sums of LINK tokens may get bigger contracts. Those who fail to deliver correct data can also have their tokens deducted. After the ICO, 32% of LINK tokens were released to the operators as an incentive while 30% are being held by the project to fund its development. All remaining tokens were sold in the ICO. [At the inception time, the price started at $0.126 per LINK token]
The biggest challenge for any crypto project is to land its first third-party integration as it demonstrates a viable real-world application of the project. For Chainlink, their first big breakthrough came almost 11 months after the ICO.
This was as the renowned gaming platform Earn Bet Casino integrated Chainlink to gain access to off-chain data for powering its prediction markets and sports games. This showed that Chainlink had a place in the crypto sphere and was not just a theoretical venture.
Moreover, after the successful integration with a decentralized network of oracles, EarnBet is now also considering to integrate Chainlink VRF into its games as an on-chain feature of verifiably unbiased and fair RNG. [During this time, the price of the LINK token was hovering between $0.25 and $0.35].
However, the biggest breakthrough for Chainlink occurred when the search giant, Google, adopted Chainlink into its smart contract platform allowing millions of Google Cloud users to directly and securely connect to BigQuery through Chainlink.
The impact of this event can be recognized by the fact that even a year later, this news is the pinned tweet section of Chainlink's official Twitter handle. A blog published on Google outlined how using Chainlink internet-hosted information and data can be made available inside an immutable blockchain.
This has remained one of the biggest achievements of the Chainlink project thus far, being adopted by Google put the cryptocurrency on the map, giving it the limelight it deserved. Although the effect of the price of the LINK token was not massive, it still saw an increase in its demand as the market went bullish. [The price was around $1.10 per LINK on June 10, after June 13, it doubled to went past $2.20 by the end of the month].
Although 2020 has not been the best of years by any standards, fortune has continued to favour Chainlink in a multitude of ways. During 2020, Chainlink launched its Decentralized Finance (DeFi) project which has been received with immense enthusiasm by the crypto community. It is being seen as one of the major victories for the platform since the project fits right in with its vision to empower smart contracts and make them more versatile. It has also given the boost to the price of the LINK token.
Many companies have already integrated Chainlink DeFi into their technology stack to deliver live feeds to their audiences. These include DeFi Pie which is using Chainlink to broadcast price feeds of LINK/USD, ETH/USD, and BTC/USD live on testnet. DeFiner is also integrating five Chainlink price reference feeds live on mainnet for powering its digital asset savings accounts. [Current price is just above $15 per LINK token after it touched the high of $19].
Compare Chainlink With Fiat Currencies, Commodities, and Crypto
Since Chainlink is now in the top 5 cryptocurrencies ranked by market capitalization, we must compare it with other types of assets to develop a better perspective, in terms of how it is different or identical when confronted with those assets.
Compare Chainlink With Dollar
Although the clear difference between a LINK token and a fiat currency like the USD is that one is physical and the other is digital, both are valued through external factors such as market demand and supply. Fiat currencies also tend to hold their value more consistently, compared to LINK which is far more volatile and can witness sharper rises and falls in terms of its price.
When it comes to a fiat currency, there is usually a central regulatory authority that has tight control over the production and management of the currency. It's done via monetary policy. On the other hand, Chainlink is a decentralized network of oracles which means no central authority has power over its matters along with the project founders. You can use and exchange fiat currencies anywhere you want but with LINK tokens, you have to do it through selected brokers and trading platforms. Moreover, it cannot also be used as a currency like fiat currencies.
Compare Chainlink With Gold
Again, both assets have the distinction of one being physical while the other being digital. That being said, both gold and LINK tokens can be used as assets that hold value. The difference is that gold is not as volatile as LINK. Chainlink might make you a lot of money in a short period while it can also give you a loss. Gold, on the other hand, has to be held for a long term investment to make any substantial gain, unless day trading with large levels of risks.
Both Chainlink and gold are not viable currencies and may pose a liquidity issue. You can sell LINK on an exchange to get fiat currencies or other popular altcoins which are widely accepted by some retailers.
Compare Chainlink With Ethereum
There is a special connection between the two cryptocurrencies as one was created to develop smart contracts and the other was created to provide real-world data to smart contracts.
Chainlink is based on Ethereum and uses its infrastructure in its project. Ether is used to reward or empower developers who want to build smart contracts or dApps while LINK is used to reward those node operators who provide accurate data through oracle network.
Moreover, since ETH is an established crypto, it is available through most of the brokers and trading platforms while LINK is only available on some of the brokers. Apart from that, ETH can be used as a currency, with LINK having no liquidity as a currency.
Future Price Predictions
Chainlink has recently become one of the most talked-about cryptocurrencies because of its 450% price surge in the last twelve months. It has unseated many established altcoins to make its place in the global top five tokens and is currently approaching a market capital value over $6 billion.
There are many further developments, news, and trends that are going to affect the currency price throughout the year and in the coming years. Let's take a brief look.
Chainlink Price Predictions for 2020
The latest news in the Chainlink world is the DeFi launch which is being hailed as 'one of the most valuable DeFi crypto'. It gave the currency its sharpest price surge as LINK almost touched $20 in August 2020 before taking a few steps back. The DeFi launch has already attracted many businesses including DeFiner, DeFi Pie, and most recently dyDX who are all using Chainlink's project to power their live feeds for a multitude of purposes.
According to analysts, the LINK token has touched the key mid-term trend line which means the next stop for the currency could be $18 per token. Although the current rally is consolidating, some investors remain bullish on the price trend due to the successful launch of project DeFi and upcoming events which are bound to provide more PR and mind share to the project as well as the cryptocurrency.
In September 2020, there is a video question and answer session with the CEO of Teller, Ryan Berkun, who will discuss the importance and impact of decentralized oracles and how they are meeting the expectations of his company and its objectives. Furthermore, the DeFi approach will also be discussed along with how they have connected credit scores with DeFi apps. Another online event would be conducted from London in October 2020 where Ari Juels, who coined the term 'Proof of Work' will answer the audience's questions about the project.
It means that Chainlink is not only doing well on the PR front but it is also delivering on its promises which bodes well for the price of the future currency. The price has currently found ground around the $15 mark but it is predicted to increase by 50 to 100% in the coming months given the historical performance, DeFi's success, real-world adoption of the project, and PR events. Having said that, cryptocurrency is a volatile space so if you are thinking about investing, ensure you are diversifying your investment for the sake of risk management.
Price Predictions for 2021
To go further, we will have to look back and see how the currency has performed historically. Although history has been short, it is interesting to note that Chainlink has never seen steep dips in the price and always finds a stable trend after a quick surge.
The first one came back in February 2020 when the price hit the $4 mark but later on, came down to under $3 for a short period as the price gradually regained its momentum. Throughout history, you can see that it has been a slow and steady mover until the DeFi launched and the price suddenly took a steep flight.
Analysis of historical data suggests that while there will be quick surges for LINK tokens, it will continue to find a stable ceiling and you could consider searching for that as a potential investor.
Furthermore, the price will also depend on the continued success of other developments launched by Chainlink. If they fail to garner the same attention as DeFi has, the currency might stop seeing growth and may even fall. That's why it is important to keep looking at the developing stories and what analysts are saying.
Given the current train of success, we believe that LINK will continue to ride its wave of success into 2021 and from there on different factors and market sentiment will decide whether it stays the course or not.
Beyond 2021 for Chainlink
It is very difficult to predict the price of any cryptocurrency that far into the future but if historical data is any indication then LINK could continue its slow but steady growth with steep surges here and there which may experience eventual corrections. That being said, severe price crashes seem to be unexpected but when it comes to cryptocurrencies you never know how a single event can impact the price of a token.
This is why we advise our users to keep an eye on Chainlink, especially in the short run, but if you are considering investing, make sure you have researched the currency well and diversify your investment by investing in a range of assets and cryptocurrencies to ensure not all eggs are in one basket. This could limit your risk.
Chainlink Price Conclusion
Looking at the historical data from an analyst's point of view, Chainlink has been one of the most stable cryptocurrencies in recent times. Although there have been sharp surges a couple of times, they have corrected themselves very quickly and the currency has not seen a big dip. This means that Chainlink offers you an opportunity to make quick profits through its occasional surges while also ensuring your LINK holdings gain value in the long run by accumulating price growth over a longer period.
However, you need to keep in mind that cryptocurrencies can react very quickly to market events since there is no single regulatory body and you need to be prepared for it. The transaction fee of Chainlink is negligible and more and more brokers are now offering it as it has become the fifth most highly valued currency by market capitalization. Could it be the right time for you to buy Chainlink? You decide.
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Frequently Asked Questions
Multiple factors can affect LINK token's price including market sentiment, technical success or failure, project adoption, and regulations.
Nobody can give you any guarantees. While all the indicators, from technical and PR perspectives, look promising, it is difficult to tell where the price will be.
You can do so by avoiding to put all of your money on a single cryptocurrency like Chainlink. Instead, invest in different assets that have shown promise of growth and diversify your portfolio.
You never know for sure. However, if you have something specific in mind, you can use demo accounts offered by many brokers and trading platforms which allow you to test your investment strategies without putting your money at risk.
It may or it may not. Once again, there are no guarantees when it comes to price predictions. That being said, LINK token has seen 450% growth in the last twelve months so it can perform well.
There is no perfect timing, but some analysts say that when the price has corrected itself after a sharp surge it's time to invest. Ideally, you would want to buy the currency at its lowest point so you can make more profits but it's difficult to identify what the floor is.
Chainlink is not a currency but a decentralized network of oracles designed to provide real-world data to smart contracts in a secure manner.
Take a look at what analysts are saying and read the news. Also, take a look at the charts of historical pricing. It will allow you to develop a perspective on whether it is a good time to invest or not.