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Chainlink Price Prediction – Can LINK Hit $1,000?

chainlink price prediction $1,000
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Chainlink has been one of the more popular altcoin cryptocurrencies for the past few years. It recently gained a massive amount of attention earlier this year when the price surged to above $50 due to the increasing popularity of decentralized finance (DeFi).

Anyway, this article will cover everything you need to know about Chainlink including a price prediction and how exactly this cryptocurrency operates. 

How Chainlink Works

A full technical breakdown of how Chainlink works is far beyond the scope of an article discussing a price prediction. However, it is still important to have some understanding about how a cryptocurrency works before discussing a price. 

With that in mind, this section will offer a brief overview of how Chainlink operates. The basics are that Chainlink is an oracle network that provides off-chain data to smart contracts on the Ethereum blockchain. 

Now, this is a fairly standard service, but what sets Chainlink apart from other services is that it’s decentralized. Yes, a common trend among emerging cryptocurrencies is a focus on decentralization. 

The decentralization works in a rather simple way. Basically, a smart contract will send out a request for data to the Chainlink blockchain. Chainlink will find oracles that provide this data. Chainlink will then compare the information provided by the oracles to determine which oracle is providing accurate information. 

For instance, if 5 oracles provide the exact same information and two oracles provide completely different information, then the information from the two oracles with inaccurate information will be discarded. 

A decentralized system like this prevents a malicious party from manipulating the data feed of an oracle. 

So, where do the actual LINK tokens fit into all this?

Simple. Smart contracts must pay for information in LINK. Also, oracles that stake more LINK will receive higher priority and trustworthiness when it comes time to pick out oracles for information. 

Oracles that provide bad information will end up losing some of the LINK they staked. 

This system does two things: 

One, it keeps the oracle operators honest because their staked LINK is on the line if they provide inaccurate information. 

Two, it gives LINK some built-in demand because the only way to pay for Chainlink’s services is with its cryptocurrency. This will keep the price of LINK at a somewhat high rate because, well, someone will always have to use LINK.  

Why is Chainlink Popular?

Chainlink might sound like a simple line of code. This is true to some extent, but Chainlink does not have any real competitors despite this. 

And yes, Chainlink is extremely popular. Most of the protocols on DeFi use Chainlink oracles for their pricing information. In fact, it is considered bad practice to not use Chainlink on DeFi smart contracts. 

Chainlink has become that well accredited on the Ethereum blockchain. 

To answer the question, Chainlink is popular because the oracles provide accurate information. The data from the oracles is also much less open to manipulation than creating your own oracle. This popularity has driven the price of LINK, Chainlink’s native token, to some crazy all time highs. 

LINK Token Information

Project Name: Chainlink

Token Ticker: LINK 

Token Type: ERC-20 Utility Token

Project Launch:

Current Price: $17.24

Current Market Cap: $7.5 billion

All Time High Price: $52 on May 26, 2021

All Time High Market Cap: $21 billion May 11, 2021

Total Supply: 1 billion 

Max Supply: 1 billion 

Circulating Supply: 434 million

Staking? Yes

Where to Buy LINK?

LINK should be available on every tier 1 exchange (Coinbase, Binance, etc.) and most other larger exchanges. This is a cryptocurrency with the 15th highest market cap and it’s an ERC-20 token. 

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The fact it’s an ERC-20 means it is also possible to purchase LINK on decentralized exchanges on the Ethereum blockchain. 

Basically, we are saying that you should be able to find LINK in a lot of different places. We would be very surprised if you had a difficult time purchasing LINK.

Chainlink Price Prediction – Can LINK Hit $1,000?

Chainlink is, in our opinion, one of the most promising cryptocurrency projects on not only Ethereum/DeFi but the entire cryptocurrency industry. 

The important thing to keep in mind with Chainlink is that the long term success of the project (and the upward trend of the price) relies solely on the success of DeFi, period. 

That is why Chainlink saw so much growth in 2020 and 2021 compared to the first three years of its existence (201 to 2020).

That’s right, DeFi has driven LINK to it’s most recent all time high.

So, is DeFi here to stay or is it just a fad?

DeFi is most definitely here to stay. Of course, there are some problems that must be worked out, but the overarching technology is there. And Chainlink has made itself an integral part of the success of DeFi.

To answer the question, yes, LINK can definitely hit $1,000. The more difficult part is offering an exact date on this prediction. Our best guess is that Chainlink will hit $1,000 before 2035, and this is a very conservative estimate.

Chainlink hitting $1,000 will likely occur far before that year simply due to inflation of the US Dollar – 2035 is simply the point at which DeFi will likely have made the traditional finance industry mostly irrelevant. 

What Can Stop Chainlink?

Chainlink is a very solid project. Likewise, it does not have many of the problems that other cryptocurrencies face. However, there are still problems that can stop (or slow) the growth of Chainlink. 

The biggest problem Chainlink has is that it’s based on the Ethereum blockchain. If Ethereum fails for whatever reason, then Chainlink will be one of many casualties. 

Fortunately, we find the likelihood of this occurring extremely small. 

Other problems for Chainlnk could include simple mismanagement, the emergence of a better competitor (unlikely), or the decision for protocols to in-house their oracles (extremely unlikely – more moving parts to deal with). 

Basically, as it stands, Chainlink does not have any imminent threats that can really reduce the value of the cryptocurrency. The same cannot be said about other popular cryptocurrencies (ie. Tether, Cardano, Ripple, etc.).

Closing Thoughts

That covers it for our LINK price prediction. This is certainly one of the more exciting cryptocurrency projects and it certainly has the potential to see massive gains. However, it also falls into the category of cryptocurrency that you should likely buy and forget about. The project will likely take a few years before it sees major success. 

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