During the cryptocurrency craze, Chainlink (CRYPTO:LINK) was a fantastic token. If you had invested $1,000 in its initial coin offering in September 2017, your money would now be worth $178,183. However, it would have been worth $473,545 in May, prior to the massive crypto sell-off. Even after suffering heavy losses during the bear market, the token has its own dedicated community known as the “Link Marines,” which is undeterred about the token’s potential.
As it turns out, this innovative token has a lot to offer. Let’s see if joining the Link Marine Corps would be beneficial to crypto investors.
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When Vitalik Buterin first created Ethereum, it was a game-changing way to seamlessly transfer money using smart contracts — code that can automatically execute a contract between two parties. Ethereum, on the other hand, is unable to incorporate real-world data into such an agreement. Chainlink bridges this gap by establishing an oracle network that includes market data, bank and retail payments, web APIs, backend systems, and other blockchain cryptocurrencies. An oracle network is a system that connects real-world APIs to smart contracts.
Across the decentralised finance (DeFi) network, its network secures billions of dollars in value for smart contracts. The token is widely used in cryptocurrency derivatives, lending and borrowing contracts, stable coins (assets that require underlying collateral to back them up), and cryptocurrency asset management. It is the world’s first and most widely used DeFi token and oracle network.
In this article, we’ll look at the Chainlink price forecast for the next two years, 2021 and 2022. Beyond that, you’ll be able to see what the future holds for LINK in 2025, 2030, and even 2050.
What do you Think of the Fundamentals?
With 441.5 million tokens mined out of a total of 1 billion, Chainlink has a fully diluted market cap of $24.2 billion. Furthermore, each transaction is lightning fast, requiring only 20 confirmations over the course of five minutes.
However, because the token is primarily used to process large-scale capital movements on DeFI networks, assessing its suitability for everyday consumer transactions isn’t yet feasible. Binance, by the way, is a part of the Chainlink ecosystem, using the oracle token on its Smart Chain to save developers time from having to build their own.Any Anchor
Unlike Bitcoin, Chainlink employs a proof of stake (PoS) protocol, which eliminates the need for miners to solve complex cryptographic puzzles in order to process network transactions, significantly lowering Chainlink’s environmental impact. People mine or validate block transactions based on how many tokens they own, which is a disadvantage. In fact, only 125 wallets control up to 80% of Chainlink, making it extremely vulnerable to price manipulation (mainly to the upside).
For providing this valuable Oracle data, Chainlink will charge insurance companies, exchanges, and other applications. According to the Electric Capital Developer Report, Chainlink doubled its active developer count between Q3 2019 and Q3 2020, making it one of the fastest-growing blockchain projects today.
Chainlink is an Ethereum-based decentralised blockchain oracle network. The network is designed to make it easier to transfer tamper-proof data from off-chain sources to smart contracts on the blockchain.