Chainlink has been around for a short period of time compared to all the other cryptocurrencies. However, it has gained a significant value over time and peaked at more than $50 in a short time.
Many crypto experts have set their eyes on the cryptocurrency and want to learn more about it. Chainlink is connected to smart contracts and is a super reliable and secure investment project.
What makes the cryptocurrency so important? Will it be worth investing in this upcoming year?
Let’s read more to find out!
What is Chainlink?
Chainlink is a decentralized network of nodes built on Ethereum (ETH). The token’s link is ERC-677, which is the extension of ERC-20. Chainlink’s network is used for conducting reliable and secure data transfer between off-chain and on-chain smart contracts.
Short for LINK, the token is stored in ERC-20 wallets since it has the same function as the ERC-677 one. Overall, the network is supported by many data providers, security auditors, smart contract developers, and more. In addition, Chainlink offers decentralized participation for users who interact with the platform, meaning anyone can become a node operator within the network.
If you read Chainlink’s whitepaper, you’ll find out that Chainlink has the following features and capabilities:
- Privacy-preserving features
- Off-chain computation
- Crypto-economic staking
Comparatively, Chainlink is a special project and has been one of the first networks to allow off-chain data to be transferred onto on-chain smart contracts. Due to this, the innovative project has had many new partnerships and data providers that have contributed to it.
Who are Chainlink’s biggest competitors?
Chainlink isn’t alone in the market and is competing against several competitors, making it much more difficult to compete in the cryptocurrency market. However, if we look at it from a project perspective, Chainlink doesn’t have too many competitors to think of. Who are Chainlink’s main competitors in the market? They are the following:
- Brand Protocol
Chainlink and its competitors connect other projects and make them compatible with one another in real-world use. Nevertheless, the most important goal of these projects is to acquire the right partners. Comparatively, Chainlink is doing much better than its competitors and has more than ten times more partnerships than all of its competitors combined! As of now, it’s considered the best in the oracle network and is much better developed and deployed.
Furthermore, something to clarify is that most of the top coins compete for market dominance and are smart contract platforms, exclusively Ethereum. Some other smart contract coins include Cardano, Solano and you have many other memecoins, stablecoins, etc.
Currently, Chainlink is ranked in the top 30s price-wise and its closest competitor is around 60th place. As we mentioned before, Chainlink has a huge gap between its competitors, which might get even larger as time passes.
To get a better picture, the gap between Chainlink and some of its competitors is quite significant. Of course, this gap difference is in market cap and not price value, but it also signals that it’s a better investment for the long term, even though it may have a smaller price value.
Where does Chainlink stand right now?
After the crypto market crash, Chainlink was also a victim of losing its value. One year ago, it peaked at around $29 but is now at about $6. However, don’t think it’ll always be this way. Chainlink is an influential cryptocurrency and the best in the oracle network, so once the market regains its value, it will blast through the rest.
Other than that, it has had a network speed improvement and more flexibility over time. However, the improved speed will influence developers wanting to work on a faster network, which will increase the overall price of the coin.
The best platforms to invest in Chainlink
You are probably wondering where you can buy Chainlink? Chainlink is available on several cryptocurrency platforms. So, you can buy the cryptocurrency in only a few minutes and ensure that you use a reliable crypto exchange platform that you can safely store in your crypto wallet.
Undoubtedly, you can invest in plenty of secure and powerful platforms. Here are some we recommend:
- Binance: One of the world’s most popular cryptocurrency platforms. Binance has nearly 30 million users and is a highly secure platform to invest in without worrying if your account will get hacked. There are more than 600 cryptocurrencies on Binance and because it’s such a user-friendly platform, it’s quite easy to complete your investment.
- Crypto.com: Like Binance, Crypto.com is an original platform you can invest your money into. There are more than 250 cryptocurrencies on the platform, including Chainlink. Additionally, you can use more than 20 fiat currencies by using a bank transfer from your debit or credit card. Crypto.com is highly secure, so you won’t be in doubt if you invest your money into Chainlink on this platform.
- Coinbase: After these two giants, we also have a widely-mentioned name: Coinbase. With Coinbase, you both have the pro and free version, which is secure and easy for beginners with different levels of knowledge. There are much fewer cryptocurrencies to invest in on Coinbase, but Chainlink is available and an alternative secure platform to invest in.
- Gemini: Another alternative that was one of the first major cryptocurrencies around. It’s considered the largest by asset size and supports major cryptocurrencies, including Chainlink. As a start, you can earn $10 for the first $100 you trade-in!
Chainlink price prediction by 2025 and 2030
You can never perfectly predict a coin’s price, but based on expert analysis, most of them claim that in the next three years, Chainlink’s value should stand anywhere between $22 to $28. So even though it peaked at this price level only a year ago, it might take some time for the coin to regain its price.
Additionally, there’s another question to answer: how much will Chainlink be worth when we arrive in 2030? Some of the largest companies in the world invest in digital currencies and many countries already have a set of policies that count for them managing crypto assets.
Even though Chainlink will regain its last year value by 2025, many crypto experts predict that Chainlink’s value will go up to around $149 and even $181 by 2030. So, in this case, you can consider it a great long-term investment that will bring you some excellent benefits.
In this case, if you are looking for a short-term investment, Chainlink might bring some returns but will always be a better option for the long term.
Do you know what the next big thing is? It’s Chainlink 2.0! We mentioned that smart contracts are becoming super popular and Chainlink is making them much more secure, cheap and easier to use. So chainlink’s developers have come up with an idea to upgrade the current version to Chainlink 2.0.
Chainlink 2.0 is expected to launch soon and will offer several advanced features built on top of oracles. For example, off-chain networks direct computation tasks away from the smart contract’s main layer.
Overall, the Chainlink network keeps generating value as blockchains and smart contracts highly rely on the price oracle function. What does this mean? It means that Chainlink’s price prediction will automatically go up and depend on the source of price data.
Is Chainlink the right investment choice for you?
Considering that Chainlink is the leading data oracle network and an essential investment for quick growing smart contract platforms, you have several advantages in this case. Any cryptocurrency you invest in is risky, but based on our analysis that we made, we came to find out that the Chainlink project is some of the least risky cryptocurrencies to invest in.
Otherwise, the crypto market is trying to recover and that is good news for Chainlink too. We showed you what experts claimed and in the next five to ten years, Chainlink will be an excellent long-term investment to make, so don’t think twice about it!
The bottom line
Coming to an end, you have to find out why Chainlink is an important investment and what kind of price points it will hit in the future. The past year has been a struggle for all cryptocurrencies, but in the end, what really matters is how much it benefits you in the long term.
As we mentioned before, Chainlink is a stable cryptocurrency and probably the least volatile compared to the rest. Now, it’s up to you to find out what you need to do!
About the author:
Tony Ademi is a freelance SEO content and copywriter. He has been in the writing industry for three years and has managed to write hundreds of SEO-optimized articles. Moreover, he has written articles that have ranked #1 on Google. Tony’s primary concern when writing an article is to do extensive research and ensure that the reader is engaged until the end.