Disclaimer: The datasets shared in the following article have been compiled from a collection of online resources and do not reflect AMBCrypto’s own research on the subject.
Chain link [LINK] had gained more than 10% in 24 hours, at press time. Tantalizing, but a drop in the ocean compared to what it lost in the crypto-winter that spared no one. In fact, LINK has seen its value drop over 83% from its all-time high of $52.88 in May 2021.
So, does this surge indicate a reversal, or is it not the right time to enter LINK? This article will talk about the twenty-fourth ranked crypto by market capitalization and discuss what are the important factors to consider.
Chainlink is the largest oracle project by market capitalization and total secured value, and the number of crypto projects associated with it. An oracle is basically software that acts as an intermediary between the chain and the real world.
Here is a fun fact from Llama Challenge – Chainlink gets more value than all of its competitors combined. The network has secured more than $15 billion through protocols that rely on its data streams. At the time of writing, data revealed that LINK was trading at $9.05. Its market capitalization stood at $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 Chainlink is estimated to hold 60% of the market share.
Such a monopoly has its drawbacks. For example, during the collapse of Terra, Chainlink caused a loss of $11.2 million to the Venus protocol. This, when the latter was unable to access accurate data from Chainlink’s price feed.
In fact, the Chainlink ecosystem has big names like VISA, SWIFT, Google Cloud, etc.
It is important to note that most of the LINK in circulation is used for speculative purposes rather than rewarding node operators. This, as expected, raises eyebrows among value investors.
Some believe that Chainlink creates economic value in the industry by responding to a number of crypto projects. Alas, this value does not seem to be reflected in the price of their native token.
Even so, after June 7th of Chainlink proposal of the staking update, LINK jumped nearly 20% from $7 to $9.
The proposed staking update is highly anticipated in the crypto space. The update will be beneficial for the value of the token as oracles will be needed to stake LINK. This update will also enable community participation, leading to improved overall security.
The update will also bring additional utility to LINK, beyond facilitating payments to node operators.
The developers of Chainlink estimate that the proposed staking will earn 5% per year from the proceeds of users of Chainlink’s data feed and issuances from the cash reserve. The goal is for cash issuance to cease once Chainlink usage increases, leaving all staking rewards to come from fees paid by Oracle users.
Eric Wall of Arcane Assets was rather critical of Chainlink’s activities. In May 2021, he declared that the network is not “crypto-economically secure”, citing the state of the developers and the fact that the model relies on a trust system.
Zeus Capital has been a vocal critic of Chainlink since 2020 when they published a fifty-nine page investigation report. One describing how the network is a fraud, going so far as to call it the “electronic card of crypto”.
CryptoWhale has ratcheted up the heat on Chainlink developers in a series of tweet too. He accused the team of running a pump and dump program. These allegations came following a $1.5 billion sale of LINK allegedly by Chainlink insiders and developers in June 2021.
One billion LINK tokens were pre-mined in 2017, after which Chainlink raised $32 million through an initial coin offering (ICO). Thirty percent went to the founders and the project. Thirty-five percent represented airdrops and node operator rewards. The remaining thirty-five percent went on issuance to investors.
According Etherscan, the top hundred wallets hold about 75% of the LINK supply. That doesn’t look so good for a token that’s supposed to be decentralized. Chainlink proponents have argued, however, that some degree of centralization will help developers respond effectively to events threatening the network.
Data from Etherscan also revealed the addresses of Chainlink developers systematically dumping their holdings on Binance, which was not well received by the community.
You would think this works well in favor of decentralization, but most of these tokens have been bought by whales.
A number of analysts believe that the performance of LINK and ETH are correlated to some extent.
The growth of Chainlink is intrinsically tied to the growth of smart contracts and blockchain services. The increased adoption of smart contracts translates into an increase in the demand for data streams from oracles.
Chainlink’s usefulness has attracted cross-chain businesses. Non-Ethereum-based protocols like Polkadot and Solana are building integrations with Chainlink to access its oracle network.
Chainlink (LINK) Price Prediction 2025
Changelly experts have concluded from their analysis of LINK’s previous price action that in 2025 the crypto should be worth at least $26.64. The maximum price for LINK, according to them, would be $32.01. Considering its press time price, it would yield a whopping 312% profit.
On the contrary, SearcherThe LINK Expert Panel predicted a median value of $40 for LINK by December 2025.
Ethereum merging its mainnet and Beacon Chain is also expected to affect the price action of LINK. In fact, it has also been shown that there is some correlation between ETH and LINK. ETH broke above $4,000 and LINK broke through $50 to hit an all-time high last year.
Speaking in the context of the Mainnet Merger, if ETH were to break above the $10,000 level, it is likely that LINK will follow and touch $100.
In light of Chainlink’s new business partnerships, API connection improvements, and custom services, there are also projection which place a maximum price of $45.75 on LINK by 2025.
Chainlink (LINK) Price Prediction 2030
ChangellyCrypto experts at have estimated that in 2030, LINK is trading for at least $182.88, with a possible peak at $221.4. This would mean a return of 2650%.
Joseph Raczynski, technologist and futurist at Thomson Reuters and one of the panelists of Searcher, has a rather positive view of the future of LINK. He sees the coin being worth $100 in 2025 and $500 by 2030.
“Link is pushing the boundaries of one of the most important aspects of blockchain technology – connections to other blockchains, databases and ecosystems. Chainlink could be the superhighway among blockchains, which is a huge key to industry.
Justin Chuh, Senior Trader at Wave Financial, also made his own projections 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 extremely bullish stance on the token’s future value and projected that LINK would be worth $500 by 2025 and $2,500 by the end of 2030. .
“LINK has one of the fastest and smoothest growth curves of any cryptocurrency and has a major competitive edge.” Przybysz added.
The major factors that will influence the price of LINK in the coming years are,
- Timely implementation of staking update
- Increased adoption of WEB 3.0
- Partnerships with established companies.
Launched in 2017, Chainlink is relatively new to the industry and its full potential is yet to be determined. The on-chain metrics suggest that users are confident about LINK’s future.
The majority of predictions have pointed to double-digit gains for Chainlink. However, price predictions are no substitute for due diligence and research.
It’s worth pointing out here that the fear and greed index has improved significantly over the past month. Only time will tell if it holds.