Chainlink price prediction for 2021: can LINK reach $1,000?
Given how much it is used in DeFi, Chainlink price predictions are interesting for 2021
Even though much of the attention has been on retro cryptocurrencies during this year’s bull runs, there’s still a lot of appetite for Chainlink price prediction. And, when you delve into the technology that underpins this altcoin, you can start to see why.
Chainlink price analysis shows this digital asset has gained momentum slowly but surely since the year began. When 2021 started, LINK was worth $11.46, and when it reached an all-time high of $52.88 in early May, many Chainlink price forecasts were anticipating that it was just the beginning. However, at the time of writing on 14 October, the coin stood at roughly $27.
So, what now? Will Chainlink go up? Can Chainlink reach $1,000? In this article, we examine some of the fundamentals behind this project – and try to anticipate a Chainlink price forecast and where the value of this digital asset is heading next.
What will Chainlink be worth in 2021?
The Chainlink price prediction 2021 was recently given a boost when the project unveiled a brand-new white paper – 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 new feature that is being pioneered concerns hybrid smart contracts, which bring together on-chain and off-chain computing resources. And as congestion on certain blockchains creates 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 this into layman’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 won’t need familiarity with intricate underlying protocols – simplifying the process of making use of data oracles. The transparency that blockchain provides is being blended with greater confidentiality and work is also under way to ensure that its infrastructure can’t 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 white paper 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 will 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.”
Should I invest in Chainlink in 2021?
Of course, it’s important to do your own research when assessing what’s next for Chainlink’s price. The sudden drive to record highs 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 Ethereum.
One thing that’s eminently clear is that this project isn’t sitting still. February saw the introduction of Off-Chain Reporting (OCR), a feature that had been 18 months in the making. The upgrade reportedly cuts gas fees tenfold by changing the way that data is aggregated. This joins other intuitive features, such as verifiable randomness, which delivers dependable sets of random numbers to DApps.
Chainlink price predictions in 2021 are also being encouraged by how this is a very blockchain-agnostic platform – and one that isn’t just geared towards the Ethereum network. The project also has close ties to Polkadot, which has often been dubbed an ‘Ethereum killer’ because of how 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.
Trade LINK to USD – LINK/USD chart
What’s next for LINK?
Chainlink price predictions are largely bullish because of how the price feeds it provides play an instrumental role in the decentralised finance space – a sector that has been going from strength to strength ever 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 like bitcoin was the first cryptocurrency to exist, giving it an undeniable advantage over the myriad of coins that followed, Chainlink has an upper hand because of how it was one of the very first projects to offer oracles. And, 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.
According to a Chainlink price prediction from LongForecast.com, the Chainlink price will rise to $33 as 2021 draws to a close. DigitalCoinPrice.com has a Chainlink price prediction that forecasts the LINK price will be $45.5 by the end of the year and sees it hitting $100 in five years’ time.
Meanwhile, a Chainlink price prediction from Trading Education anticipates that LINK will continue to grind upwards and could be worth between a minimum of $50 by the end of this year.
Of course, all of these are just predictions – and these algorithms can’t anticipate the news stories and industry developments that ultimately inform an 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 being pushed out by the likes of Dogecoin.