Chainlink - LINK
Updated: Jun 21
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What is Chainlink (LINK) and how does it work?
Chainlink (LINK) is a blockchain abstraction layer that, with its technology, enables non-blockchain enterprises to connect with blockchain platforms by using smart contracts securely. Using a decentralized Oracle network, Link enables blockchains to securely interact with external data feeds, such as baseball scores or stock prices, providing the off-chain information needed by complex smart contracts.
Part of the Chainlink crypto success can be attributed to the fact that the network is powered by a large open-source community of data providers, smart contract developers, researchers, node operators, security auditors, and more. Nevertheless, the company's main focus remains to guarantee decentralized participation for all node operators and users looking to contribute to the network.
What makes Chainlink unique is that it was the first network to allow the integration of off-chain data into smart contracts, opening a whole new realm of possibilities for blockchain applications. As a result, due to the integration of off-chain data, Link has attracted interest from numerous data providers such as Brave New Coin, Alpha Vantage, and Huobi, where providers can sell access to their data directly to Chainlink and therefore monetize it.
Additionally, as a decentralized network, Chainlink crypto enables its users to run and operate notes, therefore earning revenue by running the critical data infrastructure required for the blockchain. Through its wide network of node operators, Link can power a wide range of decentralized Price Feed oracle networks live in production, powering applications such as Synthetix, Aave, Compound, and more.
Since its launch in 2017, Chainlink has grown and has expanded to access over 1B data points, securing over $75B in value through 1,000 project integrations with 700 oracle networks. This resulted in many mainstream companies, such as FedEx, FlightStats, and the Associated Press, partnering up with the company and expanding its use cases further. Additionally, it's planned for 2022 to add the feature of allowing holders to stake their LINK coin, allowing them to earn rewards while securing the network. Although, since the network does not operate with traditional blocks, like other mined crypto such as Bitcoin, this might be a bit more challenging. Nevertheless, the founder of Chainlink has guaranteed that this new mechanism will be ready to launch by the end of the year.
Last update 14/6/2022
Chainlink crypto was initially launched in 2019 at a price around $0.50 and saw a gradual and steady increase in its price over the following months, rising as much as $4.60 before having a few months of lateralizing. Following this period, Chainlink's price saw another spike and grew to over $19 before retracing to lower levels, going back below $9 and losing over 50% of its value.
However, the following wave was the biggest one, where in late 2020, similarly to other cryptos like Bitcoin, Chainlink price grew reaching a new all-time high of $53, marking an increase of over 450% from its previous lows. This was the highest level the crypto would ever reach and it has been correcting ever since. Since reaching this level, Link has dropped to $18 initially, before recovering back to $34; and has subsequently dropped below the $18 support level, and falling as low as $6.70, or over 87% from all-time highs. This has not been great for the coin that is currently trying to form a bottom and recover from this fall.
Chainlink price prediction would suggest that the coin is still trying to stabilize and form a bottom. It is still unclear whether the current level will hold or a further drop will occur. Regardless, there is still a lot of uncertainty around this crypto, and traders should be cautious before opening any position. Nevertheless, if the coin manages to hold this level and slightly recover in the short term, it wouldn't be unlikely to see a trend reversal and higher prices by the end of the year.