Disclaimer: The data sets shared in the following article are compiled from a set of online resources and do not reflect AMBCrypto’s own research on the subject
Chain link [LINK] had increased by more than 10% in 24 hours, at press time. Alluring, but a drop in the bucket compared to what it lost in the crypto winter that spared no one. In fact, LINK saw its value plummet by more than 83% from its peak of $52.88 in May 2021.
So, is this rise indicative of a reversal or is now not a good time to get into LINK? This article will talk about crypto ranked twenty-fourth by market capitalization and touch on what are important factors to consider.
Chainlink is the largest oracle project in terms of market capitalization and total value secured, and the number of crypto projects associated with it. An oracle is basically a piece of software that acts as an intermediary between the chain and the real world.
Here’s a fun fact from Defi Llama – Chainlink secures more value than all of its competitors combined. The network has secured more than $15 billion from protocols that rely on the data feeds. At the time of writing, data revealed that LINK was trading at $9.05. Its market cap was $4.07 billion with $504.18 million traded in 24 hours.
In May 2021, Sergey Nazarov, co-founder and CEO of Chainlink, revealed in a podcast that Chainlink is estimated to have 60% of the market share.
A monopoly like this has its drawbacks. For example, during the Terra collapse, Chainlink caused a loss of $11.2 million for the Venus protocol. This as the latter was unable to access accurate data from Chainlink’s price feed.
In fact, the Chainlink ecosystem has some big names like VISA, SWIFT, Google Cloud etc.
It is important to note that most of the LINK in circulation is used for speculation rather than rewarding node operators. As expected, this raises eyebrows among value investors.
Some believe that Chainlink creates economic value in the industry by accommodating a number of crypto projects. Alas, that value doesn’t seem to reflect in the price of their native token.
Nevertheless, after Chainlink’s June 7 proposal for the stake update, LINK surged nearly 20% from $7 all the way up to $9.
The proposed stake update is much anticipated in the crypto space. The update will be beneficial to the token’s value as oracles are required to insert LINK. This update will also enable community participation, leading to increased overall security.
The update will also provide additional benefits to LINK, beyond simplifying payments to node operators.
Chainlink developers estimate that the proposed effort will yield 5% annually thanks to the income from Chainlink’s data feed users and emissions from the treasury. The goal is for the emissions from the treasury to cease when Chainlink’s use grows, so that all stake rewards come from fees paid by oracle users.
Eric Wall of Arcane Assets has been quite critical of Chainlink’s activities. In May 2021, he stated that the network is not “cryptoeconomically secure”, referring to the developers and the fact that the model relies on a trusted system.
Zeus Capital has been a vocal critic of Chainlink since 2020 when they published a 59-page investigative report. One that outlines how the network is a scam, going so far as to call it the “crypto card”.
CryptoWhale turned up the heat on Chainlink developers in a series of tweets also. It accused the team of running a pump and dump scheme. These claims came after a $1.5 billion LINK sale allegedly by Chainlink insiders and developers in June 2021.
One billion LINK tokens were pre-mined in 2017, and then Chainlink raised $32 million through an initial coin offering (ICO). 30 percent went to the founders and the project. 35 percent accounted for airdrops and rewards for node operators. The remaining 35 percent were issued to investors.
According to Etherscan, the top hundred wallets hold approximately 75% of the LINK supply. This does not look so good for a token that is supposed to be decentralized. However, Chainlink’s backers have argued that some degree of centralization will help developers respond effectively to network-threatening events.
Data from Etherscan also exposed the addresses of Chainlink developers who consistently dump their holdings on Binance, which has not been well received by the community.
One would think that this works well in favor of decentralization, but most of those tokens have been acquired by whales.
A number of analysts believe that the performance of LINK and ETH are correlated to some extent.
Chainlink’s growth is intrinsically linked to the growth of smart contracts and blockchain services. Increased use of smart contracts means an increase in demand for data streams from oracles.
Chainlink’s tools have attracted cross-chain ventures. Non-Ethereum-based protocols such as Polkadot and Solana build integrations with Chainlink to access the oracle network.
Chainlink (LINK) Price Prediction 2025
Experts at Changelly concluded from their analysis of LINK’s past price action that by 2025 the crypto should be worth at least $26.64. The maximum price for LINK, according to them, would be $32.01. Taking into account the press time price, that would make a profit of a whopping 312%.
On the contrary, Finder’s expert panel has projected a median value of $40 for LINK by December 2025.
Ethereum’s Mainnet and Beacon Chain merger is also expected to affect LINK’s price action. In fact, it has also been shown that there is some correlation between ETH and LINK. ETH rose above $4000 and LINK broke the $50 mark to reach its all-time high last year.
Speaking in the context of the Mainnet merger, if ETH were to break the $10,000 level, it is likely that LINK will follow and touch $100.
In light of new business partnerships, API connectivity enhancements, and Chainlink’s customized services, there are also projections that place a maximum price of $45.75 on LINK by 2025.
Chainlink (LINK) Price Prediction 2030
Changelly‘s crypto experts have predicted that by 2030, LINK will trade for at least $182.88, possibly peaking at $221.4. That would mean a return of 2650%.
Joseph Raczynski, technologist and futurist at Thomson Reuters and one of the panelists for Finder, has a rather positive view of LINK’s future. He sees the coin worth $100 in 2025 and $500 by 2030.
“Link pushes the boundary of one of the most important aspects of blockchain technology – connections to other blockchains, databases and ecosystems. Chainlink can be the highway among blockchains, which is a big key for the industry.”
Justin Chuh, Senior Trader at Wave Financial, also made his own forecasts for the future of LINK. He sees the coin at $50 in 2025 and $100 in 2030.
Forrest Przybysz, senior cryptocurrency investment analyst at Token Metrics, shared his immensely bullish stance on the token’s future value, predicting that LINK will be worth $500 by 2025 and $2,500 by the end of 2030.
“LINK has one of the fastest, smoothest growth curves of any cryptocurrency and has a big lead in terms of competition.” Przybysz added.
The most important factors that will affect LINK’s price in the coming years are,
- Timely implementation of Staking update
- Increased use of WEB 3.0
- Partnership with established businesses.
Launched in 2017, Chainlink is fairly new to the industry and its full potential has yet to be determined. On-chain calculations suggest that users are confident in the future of LINK.
A majority of forecasts have signaled double-digit gains for Chainlink. However, price predictions are not a substitute for due diligence and research.
It is worth pointing out here that the fear and greed index has improved significantly over the past month. Only time will tell if this holds up.