Chainlink (LINK) is one of the major cryptocurrencies in the market. Currently, it is the twenty-second largest token with a market capitalization of $7.35 billion. LINK is considered to be one of the major innovations in the crypto market and it, now, serves as an integral part of the blockchain architecture. If this token is not yet in your crypto portfolio, then read on to find out why it should be.
What is Chainlink?
Smart contracts serve as the neural foundations of decentralized finance and the larger blockchain technology. These automated algorithmic contracts enable the blockchain technology to operate in it decentralized manner. However, one of the issues faced by developers throughout the market in the development of smart contracts was data. While smart contracts, DeFi and dApp preserve the essence of decentralization, data was usually sourced from centralized intermediaries which, to a certain extent, defeated the whole purpose of the blockchain technology.
Enter Chainlink. The project revolutionized the way smart contracts work by providing decentralized oracles. Data can now be accessed in a completely decentralized manner while also ensuring the security and credibility of data.
Why will LINK go up?
There are some developments taking place over the network which may help reverse the current bearish trajectory making the current price level an ideal entry point. Lbank – a popular crypto trading platform – has announced to integrate the oracles of Chainlink. During the past week, as many as eighteen new projects from some of the most popular blockchains like Ethereum, Polygon etc. have integrated LINK’s oracles.
Apart from integrations, the platform also has some interesting developments planned for the network. A Cross-Chain Interoperability Protocol (CCIP) is under the works which will enable token flow and on-chain messaging in a decentralized manner. Moreover, for game developers Chainlink has also introduced a Random-Number Generator (RNG) which ensures randomness and unbiased in games.
In the current timeframe, Chainlink is under bearish pressures as the crypto market suffers from yet another bearish breaks. The crypto market lost nearly 2% of its global market capitalization which led to a significant decline in major tokens. However, the current bearishness does not reflect upon the long-term trajectory of the token. At the time of writing, the cryptocurrency stands at a price level of $15 with a 4% decline during the daily timeframe and a 15% decline during the running week. Digital Coin Price predicts the token will be operating at $40 in five years’ time.
