According to data from CryptoCompare, at 01:00 UTC on Monday (July 13), the price of the Chainlink (LINK) token reach $8.396, setting a new all-time high (ATH) and helping LINK to enter the list of top 10 cryptoassets by market cap.
What Is Chainlink?
Here is how Binance Info describes Chainlink:
“Chainlink (LINK) is a decentralized network that provides information (oracles) to smart contracts.
“Founded in 2017 by Sergey Nazarov and Steve Ellis, Chainlink aims to solve the problem of off-chain information sourcing by smart contracts for their execution parameters. Smart contracts are designed to execute automatically when certain parameters are met, however, when these parameters exist off-chain there is a reliance on sources of information (known as oracles) to provide the necessary information. Off-chain oracles tend to be centralized and with it comes a reliance on a third party to provide critical information in a trustworthy and time critical manner.
“Chainlink aims to break this reliance by feeding information to smart contracts via a network of decentralized oracles that work together on the Link blockchain to verify and forward critical information to these contracts. The ChainLink network allows users who have either a data feed or information carrying APIs to easily provide information to smart-contracts in exchange for the LINK token.”
Chainlink’s Recent Price Action
Although the Chainlink token set a new ATH at 01:00 on July 13, since then the price has come down, and at the time of writing (06:26 UTC), LINK is trading at $7.732, up 26.26% in the past 24-hour period:
This means that in the past 90 days, LINK is up over 128% vs USD; even more impressive is that fact that since the crypto market meltdown on “Black Thursday” (March 12), LINK is up oveer 265%, and in the year-to-date (YTD) period, LINK’s return on investment is around +339%.
Why Is Chainlink Performing So Well?
As usual, the reason for LINK’s continued excellent performance in the market is the ever-growing list of partnerships (and other bullish news) announced by the Chainlink team, especially in the area of decentralized finance (DeFi). This is not surprising since many/most DeFi projects need real-time price data, and it is much safer to obtain this external data via a decentralied oracle network such as Chainlink than from just one source.
Here are projects that have announced integrations with Chainlink just in the past week:
Congratulations to @KyberNetwork for launching their Katalyst protocol upgrade and @KyberDAO! As part of their upgrade, they are using the #Chainlink KNC/ETH Price Reference Data feed live on mainnet to power their FeeHandler feature. Learn more: https://t.co/NqkuxVQcvp
— Chainlink – Official Channel (@chainlink) July 7, 2020
.@NexoFinance, a leading loan provider with over $600MM in AUM, will use #Chainlink’s Price Reference Data to help calculate interest payments & perform collateralization checks. This provides on-chain transparency & reliability for key lending functions. https://t.co/9AZrlMFTKZ
— Chainlink – Official Channel (@chainlink) July 8, 2020
.@renprotocol and @Bancor continue to innovate and push the #DeFi ecosystem forward through advanced liquidity provisioning. One of their new features utilizes #Chainlink's REN/ETH price reference feed, which is now live on mainnet for developers to incorporate in their dApps. https://t.co/VoKfOSsWgS
— Chainlink – Official Channel (@chainlink) July 8, 2020
.@DigiTxio, a digital ticketing platform on #Ethereum, is live consuming Chainlink’s ETH/USD Price Reference Data for stable ticket pricing. They will also integrate #ChainlinkVRF for heightened security & auditability of their ticket generation process. https://t.co/17iCLOdiGQ
— Chainlink – Official Channel (@chainlink) July 10, 2020
Mobile phones are a powerful way to connect users to #Web3 technology.
By connecting @Conflux_Network to an SMS gateway using @chainlink, #decentralized tech can still be accessed through texting by those without smartphone access.https://t.co/Vyu59uL9bv
— Conflux Network Official (@Conflux_Network) July 11, 2020
Of course, it is impossible to predict where Chainlink’s token will go from here (although Chainlink’s most fervent fans would not be surprised at all if LINK crosses the $10 level before the end of this year), but it’s easy to understand investors’ optimism when the Chainlink keeps announcing at least 2-3 new partnerships almost every week.
What Crypto Analysts Are Saying About Chainlink
Popular crypto analyst/trader Josh Rager, who is also a Co-Founder of online crypto learning platform Blockroots, as well as an advisor to several blockchain startups, says that even Bitcoin maximalists should consider trading top performing altcoins such as LINK in order to increase their profits since Bitcoin has been trading in a very tight band for the past few weeks:
$LINK is a perfect example of why you should still trade altcoins even as a Bitcoin maximalist
The last five weeks, $BTC has been stuck in a $1000 range
In the meantime, LINK has went from $3.65 to $8.50+
— Josh Rager 📈 (@Josh_Rager) July 13, 2020
Another crypto analyst, Cole Garner, says that his technical analysis suggests that Chainlink might be about to go parabolic:
$LINK closed its first candle above the log trendline in a full year.
Last time that happened it went parabolic. Is this a repeat? pic.twitter.com/Hac2hemFTl
— Cole Garner (@ColeGarnerBTC) July 13, 2020
And finally, Scott Melker, a crypto trader at Texas West Capital, sounded the most bullish on Chainlink:
I have not posted this weekly chart in a while. It's absolutely beautiful. A PERFECT channel since inception, with price holding the top half since January.
Absolutely the most bullish asset I've seen in a long time. pic.twitter.com/4atuiQX9H3
— The Wolf Of All Streets (@scottmelker) July 7, 2020
However, it is worth pointing out the extreme bullish market sentiment could be seen, from a contrarian point of view, as bearish for the near-term future of the Chainlink price.
Crypto-focused behavior analytics startup Santiment said earlier today:
$LINK is +28% in the last 24 hours! Long-term and short-term traders are now estimated to be +64% return per average trader. It is now #1 on our Emerging Trends list, which has historically returned a -9% retracement over the next 12 days once achieved. https://t.co/6BtAglFR62 pic.twitter.com/N7uxw6ek6f
— Santiment (@santimentfeed) July 13, 2020