Chainlink price prediction for 2022: Can LINK reach $100?
Will Chainlink be one of the first major cryptocurrencies to break out of 2022’s bear market?
- Chainlink past performance
- From the Chainlink whitepaper
- Should I invest in Chainlink in 2022?
- What next for LINK?
Even though much of the attention was on larger cryptocurrencies over the course of 2021’s impressive bull runs, there is still a lot of interest in a Chainlink price prediction. When you delve into the technology that underpins this altcoin, you can start to see why.
Chainlink price analysis shows this digital asset gained plenty of momentum over the course of 2021. When 2021 started, LINK was worth $11.46, and when it reached an all-time high of $52.88 in early May that year, many Chainlink price forecasts suggested that was just the beginning. However, by 1 January 2022 the token was worth around $20, and at the time of writing on 24 August 2022, the coin was trading at roughly $7.28.
So what now? Will Chainlink go up? In this article, we examine some of the fundamentals behind this project – and try to anticipate a Chainlink price prediction and where the value of this digital asset is heading next.
Chainlink past performance
In April 2021, Chainlink was given a boost when the project unveiled a new whitepaper setting out how the decentralised oracle networks it provides can play a pivotal role in the blockchain ecosystem. Crucial advancements in the way the network operates have been instrumental in ensuring “Chainlink 2.0” can come to life.
One feature that is being pioneered concerns hybrid smart contracts, which bring together on-chain and off-chain computing resources. And because congestion on certain blockchains is a cause for concern, with bottlenecks rendering Ethereum too expensive to use for many decentralised finance (DeFi) protocols, Chainlink says another top priority is ensuring that its decentralised oracle networks “achieve the latencies and throughputs required by high-performance blockchains, Layer 2 solutions and Web 2.0 systems”.
To translate all this into a layperson’s terms, it wants its technology to be faster and capable of processing greater levels of traffic.
Chainlink’s price has also been positively affected by other attributes now being championed by the product. A commitment to “abstract away complexity” should mean developers and users alike will not need to be familiar with intricate underlying protocols – simplifying the process of making use of data oracles.
The transparency that the blockchain provides is being blended with greater confidentiality, and work is also underway to ensure that its infrastructure cannot be exploited by “bots and exploitative miners”. Trust and security also matter.
A blog post heralding the arrival of the project’s updated vision explained:
“This whitepaper is a long-term, multi-year view of how Chainlink will evolve. This ambitious vision for the Chainlink Network will be implemented incrementally with new decentralised services being released in parallel.”
Developers also expressed confidence that the planned upgrades would enhance the utility of smart contracts far beyond what already exists, adding:
“Just as Chainlink’s secure data oracles have unlocked innovation across the DeFi ecosystem, Chainlink 2.0’s expanded decentralised oracle networks will empower hybrid smart contract developers to build the scalable and privacy-preserving decentralised applications that mainstream users have been waiting for.”
However, since the coin’s peak in May last year, Chainlink, like many other cryptocurrencies, has yet to recover from the losses incurred towards the end of 2021 and into 2022.
On 31 December, Chainlink posted the following on Twitter:
Moving forward into 2022, Chainlink has rolled out several key upgrades.
On 22 February 2022, Chainlink announced that CelsiusNetwork and CelsiusXDeFi would be using Chainlink Proof of Reserve to help secure cross-chain wrapped tokens on Polygon, creating a novel hybrid CeDeFi infrastructure solution that unlocks new smart contract use cases via cross-chain liquidity. By the end of February, the coin was trading at highs of $15.12.
On 10 March 2022, GSR – “a crypto market-maker and ecosystem partner” – announced a collaboration with Chainlink to integrate price data for smart contracts, demonstrating the blockchain industry’s willingness to move towards interoperability and more cross-platform compatibilities. Chainlink also announced on Twitter that 15 projects had adopted four of its services across five different chains, including Avalanche, BNBChain, Ethereum, Polygon and Solana.
Towards the end of March, Chainlink Labs hired Dahlia Malkhi, who was previously CTO of Diem, to lead research at LINK. The coin closed the month at $16.91. By 8 April 2022, the coin was trading at $15.72.
However, the long-running bear market forced many cryptos to a fraction of their 2021 previous highs, and LINK was no exception. By 12 May 2022, and following the first market-wide crash, the coin was trading at lows of $7.31.
Towards the end of May, the following was announced on Twitter:
Some speculators suggest that the bear market is over and a trend reversal is due for the token. Proponents of this idea include crypto personality Michael van de Poppe. However, the token has continued on a downtrend, hitting lows of $5.42 on 14 June, following another market-wide crash which saw the total value of the crypto market sink below $1trn.
On 29 June, Chainlink was listed on Robinhood, prompting a slight price rally. In July, the token met another small price rally after the latest adoption update. However, what happens next in the broader crypto markets is yet to be seen.
At the time of writing on 24 August 2022, the token is trading at $7.28.
From the Chainlink whitepaper
The Chainlink 2.0: Next Steps in the Evolution of Decentralized Oracle Networks states: “In this whitepaper, we articulate a vision for the evolution of Chainlink beyond its initial conception in the original Chainlink white paper. We foresee an increasingly expansive role for oracle networks, one in which they complement and enhance existing and new blockchains by providing fast, reliable, and confidentiality-preserving universal connectivity and off-chain computation for smart contracts.
“The foundation of our plan is what we call Decentralised Oracle Networks, or DONs for short. A DON is a network maintained by a committee of Chainlink nodes. It supports any of an unlimited range of oracle functions chosen for deployment by the committee.”
Should I invest in Chainlink in 2022?
It is important to do your own research when assessing what is next for Chainlink’s price. The drive to record highs early last year means that LINK is often in uncharted waters – and inevitably, the altcoin’s performance can be affected by the ups and downs of larger cryptocurrencies, including Bitcoin and Ether.
Chainlink price predictions for 2022 are also being encouraged by the fact that this is a blockchain-agnostic platform, not one that is geared purely towards the Ethereum network. The project also has close ties to Polkadot, which has often been dubbed an “Ethereum killer” because it offers greater scalability, lower fees and the ability to communicate with other networks.
Chainlink price feeds are now available through the Substrate framework, further opening this technology up to a broader cross-section of developers and dApps (decentralised applications).
What next for LINK?
Chainlink price predictions are largely optimistic because of its instrumental role in the decentralised finance space – a sector that has been going from strength to strength since the start of 2020.
Blockchains themselves cannot access external market data without the use of an oracle. Experts also believe that more extensive use of this technology has the potential to drive down the number of hacks, which have resulted in millions of dollars in funds being lost to exploits that could have been avoided.
Just as Bitcoin was the first cryptocurrency to exist, giving it an undeniable advantage over the myriad coins that followed, Chainlink has an upper hand because it was one of the very first projects to offer oracles. As new applications for blockchain technology continue to emerge, the opportunities for leveraging this project’s suite of products will only expand further and further. So what will Chainlink be worth in 2022 and beyond?
According to a Chainlink price prediction from LongForecast, the Chainlink price at the end of September should be around $6.48. The site forecasts a downtrend throughout the year, however, suggesting a value of between $4.94 and $6.32 by the end of 2022. The Chainlink price prediction for 2025, in approximately three years’ time, is $7.92.
DigitalCoinPrice has a Chainlink price prediction for 2022 which forecasts that LINK will be back up to $10.65 in September, and be worth $10.91 by the end of the year. The site then forecasts a general year-on-year uptrend, suggesting an average value of $10.53 in 2023, $10.66 in 2024 and $13.90 in 2025. The site’s Chainlink price prediction for 2030 is $33.14.
Of course, these are just predictions – and the algorithms that generated them cannot anticipate the news stories and industry developments that ultimately inform any altcoin’s price. Always remember to do your own research and factor in the latest information.
In the short term, one of Chainlink’s top priorities will be re-entering the top 10 cryptocurrencies by market cap, after it was pushed out by the likes of Dogecoin. At the time of writing on 24 August 2022 it sits at number 24, with a market cap of $3.45bn.
Can Chainlink reach $1,000?
It is possible, but predictions and algorithms cannot anticipate the news stories and industry developments that ultimately inform a coin’s price. Always remember to do your own research first and never invest more than you can afford to lose.
Is Chainlink a good investment?
It might be. LINK has lost a lot of momentum over the past year. That said, you do need to be cautious. Cryptocurrencies can be highly volatile and prices can definitely go down as well as up. You will need to do your own research and never invest more than you can afford to lose.
How to buy Chainlink
You can invest in LINK at a range of crypto exchanges.