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Chainlink (LINK) price prediction for 2020, 2021, 2023, 2025, 2030

01 Dec, 2020 Eduardo Ricou
Chainlink (LINK) price prediction

The Chainlink network has gained popularity by providing reliable data protection against unauthorised access for complex smart contracts on any blockchain. The decentralised oracles solution the company offers has allowed it to gain credibility and popularity in the decentralised financial apps market. What is Chainlink, and how does it work? Throughout this article, we'll review Chainlink price predictions, cover the project's fundamentals and end with experts' price forecasts.

Chainlink's origin

Chainlink's origin can be traced back to September 2014, when its parent company SmartContract.com was established to build a bridge between external data sources and public blockchains. Sergey Nazarov and Steve Ellis are the project's founders. The team developed a product called Chainlink, which allows smart contracts to connect to the data feed of any web API or data source. This idea has changed the rules of the game in the blockchain industry.

Smartcontract.com's original solution relied on centralised oracles, creating an obstacle to the development of decentralised financial networks. The problem was solved in September 2017 with the introduction of the decentralised oracle network, Chainlink network. Within the same month, the team conducted an initial coin offering, which raised more than $32 million.

Chainlink's decentralised oracle network.

Chainlink's issue is limited to one billion tokens. During its ICO, the developers sold over 370 million LINK tokens. Chainlink's main network was launched on 1 June 2019. Anyone with a data feed or any other API can join the Chainlink network and take jobs to retrieve data and provide it to smart contracts. Node operators are paid for their services with LINK tokens. To learn how to store cryptocurrency safely and securely, make sure to read our blog post on best hardware wallets. On top of that, node operators can stake their LINK tokens to service certain smart contract requests that require collateral. Project ideas and investor support have made Chainlink one of the major solutions in the oracle space.

What is Chainlink (LINK)?

Chainlink is a blockchain platform designed to protect clients against unauthorised access when exchanging data while working with complex smart contracts. The Chainlink solution provides advanced data protection both inside and outside of the blockchain.

The Chainlink blockchain consists of special nodes known as oracles. For the network to function properly, the smart contracts need to work correctly, and the data sent to them must be reliable. A decentralised oracle network verifies the input data from various sources and then sends them to a smart contract. This achieves higher precision of input information, which is sometimes hard to verify in a centralised manner. In addition, this eliminates data manipulation. The Chainlink oracle serves as a reliable bridge between data providers and their customers.

Chainlink is a solution required for blockchain to evolve.

Smart contracts

Smart contracts allow you to move cryptocurrency from one address to another when certain conditions are met. Available for public viewing in the blockchain, smart contracts are invariable, which means that the parameters of the agreement or contract features can't be changed once they're deployed.

Smart contracts requiring off-chain data must have a reliable source to securely transfer data into the chain before this data is transferred back and forth to any off-chain party. That communication problem had previously held back the development of smart contracts. However, with the emergence of oracles, that problem is a thing of the past. Smart contracts can now be used for a variety of scenarios.

Oracles

Oracles are used to transfer real data to the blockchain via smart contracts. Any data can be transferred, weather forecast, price details or the football match score. Decentralised financing (DeFi) is the most common use of an oracle because these platforms need the most accurate and reliable sources of data available to prevent errors.

An oracle is a middleman or middleware that acts as a bridge between several parties during the data transfer to and out of a blockchain. Oracle checks and transmits real data to different blockchain ecosystems where the data is then utilised. When oracles used in conjunction with smart contracts, they verify that the conditions of the smart contract are fulfilled and that the data provided is reliable.

Sergey Nazarov on Chainlink's applicability.

Centralised oracles come with a problem: if the system fails, it can cause a failure on other platforms, potentially putting users' funds at risk. If one single oracle shuts down for a moment, it can cause chaos for many people. That creates substantial trust issues for a centralised oracle network.

Chainlink's network of decentralised node operators is financially encouraged to reach a consensus on data reliability. Abusers are penalised for playing unfairly, and their data gets rejected without reaching consensus with the rest of the network. That's the decentralisation element that makes the Chainlink network so secure.

How does Chainlink (LINK) work?

Chainlink (LINK) is a decentralised network of oracles whose primary purpose is to connect smart contracts with information coming from the environment. Since a blockchain does not have free access to information outside of its system, the oracle acts as an information channel in a smart contract.

The Chainlink network uses as its underlying asset LINK tokens, which are needed to extract off-network data flows. All tokens are formed into a readable blockchain and off-chain network computing system that provides a reliable, secure workflow.

Chainlink is based on customers and data providers. Customers select specific desired data, and providers share only this data. As a guarantee, data providers block a certain percentage of LINK tokens when they publish an offer for data. These tokens can be confiscated in the event of vendor misconduct. At the same time, Chainlink uses the oracle reputation system to collect and evaluate the data provided. If everything goes smoothly, suppliers simply receive their payment, and everyone is satisfied.

Chainlink connects data providers with the customers.

The project developers assume that smart contracts can improve existing industries' business chains significantly. However, at present, the ability to obtain information from an external source is extremely limited. That's why Chainlink is developing a reliable, highly secured decentralised oracle network using blockchain technology. The Chainlink network connects a smart contract with:

  • Any other smart contract
  • Various APIs
  • Bank payment systems
  • External sources.

The Chainlink network consists of two main components: a blockchain and off-chain. The two elements interact with each other to provide up-to-date and reliable data. Blockchains select the oracle based on parameters requested by the smart contract. The off-chain part consists of oracle nodes connected to the Ethereum network, which collect data requested by users (read our blog article What is Ethereum (ETH)? for more info on Ethereum). Chainlink's software processes the information received. It's also used by large organisations, including SWIFT, which is an international enterprise engaged in worldwide monetary operations.

Chainlink's (LINK) price analysis

As of 25 November 2020, Chainlink (LINK) is ranked 6th by market cap among cryptocurrencies, coming in at $6,081,249,698. With a circulating supply of 393,509,556 out of 1,000,000,000 coins, the cost of one LINK token equals $15.45/0.0008 BTC. Here's an overview of Chainlink (LINK):

Chainlink Price Today

$15.45

Market Cap

$6,081,249,698

Circulating Supply/Total Supply

393,509,556 LINK / 1,000,000,000 LINK

Daily Trading Volume

$1,916,816,403

All-Time High

$19.85

(16 Aug 2020)

All-Time Low

$0.126297

(23 Sep 2017)

Official Website

https://chain.link/

Chainlink's (LINK) price history

A Chainlink price prediction and analysis should start with a review of historical data. Chainlink is firmly anchored at the top of the cryptocurrency rankings. The substantial amount of money raised during its ICO helped the team fund the project's development. The project's native cryptocurrency, LINK, performed great over the past two years, moving from $0.30 to $19.85.

LINK/USD historical price logarithmic chart for 2018-2020 (coinmarketcap.com).
LINK/USD historical price logarithmic chart for 2018-2020

In 2017, when Chainlink (LINK) was listed on exchanges, its price was $0.126297. The project's popularity and investors' attention helped LINK reach $0.50 in 7 days after its listing. However, as all newly listed assets do, Chainlink was looking for a real value. After conquering $0.50, LINK dropped, establishing a strong floor in December at the $0.13 support level. The price bounced from the support, and investors brought the coin's value up to $1.50 on 8 January 2018. That was the first time Chainlink's value increased ten-fold. However, after reaching that high, LINK's price declined and dropped to $0.16 on 26 June. It grew to $0.60 on 13 November following that. When it met resistance there, the asset fell to $0.19 on 15 December.

Chainlink's (LINK) 2019 price prediction

LINK/USD daily logarithmic chart in 2019.
LINK/USD daily logarithmic chart in 2019.

Chainlink grew significantly in 2019. On 3 January, LINK broke through the resistance at $0.38 and reached $0.55 a week later. By late April, Chainlink's price had consolidated in the $0.40-0.55 range. After that, buyers stepped in and pushed LINK's price to $4.80 on 29 June. A pullback followed that to $1.50 on 25 September. A rebound from newly formed support led to a retest of the resistance at $3.10. Chainlink made three attempts to break through that level but failed, and sellers took the asset to $1.70 on 30 December.

Chainlink's (LINK) price prediction 2020

LINK/USD daily logarithmic chart 2020.
LINK/USD daily logarithmic chart 2020.

Observing Chainlink's price prediction for 2020, one can conclude that it looks similar to 2019. Even the coronavirus pandemic hasn't stopped LINK's growth. In Q1 2020, the price of LINK performed well, rising from $1.80 in January to $4.90 by early March. A significant pullback across the cryptocurrency market led to a decline in LINK's price, too. The asset retested its $1.50 support on 13 March. From there, buyers defended the support level and pushed LINK to its resistance at $4.90 on 2 June. The buying pressure was so intense that on 6 July, the resistance was broken, and the asset surged to $19.85 on 16 August, setting a new all-time high. A pullback to $7.50 followed on 23 September. The rebound from the support took LINK to $17.20 on 24 November. As of the moment of writing, LINK is trading at $15.45.

Chainlink's (LINK) technical analysis

LINK/USD 4h chart.
LINK/USD 4h chart.

The technical analysis of LINK/USD's four-hour chart indicates a strong uptrend. At the beginning of November, LINK climbed above the 200-Day Moving Average and maintained $11 as a support. As of now, the asset is trending bullish, above 200MA and 12- & 26-Day Exponential Moving Averages.

Although currently trading hands for $15.45 per token, Chainlink has gone pretty far and now faces significant resistance at $16.70/$17.70/$19.70. If you don't have a position yet, wait for a pullback to the 200MA support located at $12.30. Traders can consider the trend to be bearish once LINK closes below the 200MA on a daily basis with a confirmed bearish cross of the 12 & 26EMAs and 200MA. The closest support levels are $13.47/$12.30/$11.80/$11.00.

Chainlink (LINK) price prediction for 2020, 2021, 2025, 2030

This year, there has been a steady Chainlink integration stream, including partnerships with the largest names in DeFi, as well as integration with Microsoft and IBM. Now it's time to evaluate the LINK crypto price prediction from popular forecasting experts and agencies.

Trading Beasts Chainlink (LINK) price prediction for 2020, 2021, 2023, 2025, 2030

Following the Chainlink price prediction from Trading Beasts, LINK's future price will remain stable during 2021. They predict that Chainlink will trade within the $13-$18 range in 2021. In the following years, Chainlink will keep growing and won't fall below $14. As Trading Beasts states, in the future Chainlink may reach $27 by 2023.

WalletInvestor Chainlink (LINK) price prediction for 2020, 2021, 2023, 2025, 2030

Per WalletInvestor's Chainlink (LINK) price prediction, LINK is a fantastic long-term investment. According to their price prediction, LINK should keep bullish momentum and may raise to $28 by 2021. Over the next few years, Chainlink is expected to grow further and reach $100 by 2025.

WalletInvestor's Chainlink (LINK) 2020-2022 price prediction.
WalletInvestor's Chainlink (LINK) 2020-2022 price prediction.

Coinliker Chainlink (LINK) price prediction for 2020, 2021, 2023, 2025, 2030

Coinliker's Chainlink price prediction gives the most promising target for LINK's future price, up to $210 per token in 5 years. Coinliker suggests a tenfold annual increase each year for Chainlink. According to them, LINK is an excellent investment.

Coinliker's LINK price prediction for 5 years.

CoinSwitch Chainlink (LINK) price prediction for 2020, 2021, 2023, 2025, 2030

According to CoinSwitch, the price of LINK may rise in the coming years. Chainlink already exceeded their price prediction of $7 in 2020, and even went further when it conquered the $13 mark they forecasted for LINK to reach by 2025. As their bullish forecast is still intact, it's interesting to see how far Chainlink will go.

Chainlink (LINK) overall future value predictions

Chainlink filters out false or inaccurate data and helps clean up the net. Data fragmentation is a big problem for many companies because it becomes difficult to collect data, and the result is not guaranteed. Chainlink is changing the financial landscape by rethinking the way financial contracts work, while its decentralised oracle network is moving towards the fourth industrial revolution.

Will Chainlink (LINK) go up?

Based on the progress Chainlink's team has achieved and the popularity the crypto coin has gained, its prospects for further growth are tremendous. Chainlink should grow in the future, but we should consider that for now that the asset is facing strong resistance, and it would be healthy to have a pullback before it grows further. 

Chainlink's (LINK) price prediction today

The project has already assisted such large companies as Google, Gartner, Binance, AAVE and many others. The platform currently only works with Ethereum smart contracts, but there are plans to expand the infrastructure and add other blockchains in the future. Chainlink is cooperating with Swift, Gartner and IC3 and was the first to occupy this niche, creating a network of reliable decentralised oracles, which gives the company a strong advantage in the future.

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