Belgium (CoinChapter.com) — Chainlink is one of the strongest performers in the past 30 days. It seems many people expect even higher LINK values over the coming weeks and months, mainly fueled by speculation.
Chainlink Notes A Strong Increase
Although it is still too early to determine if “alt season” has officially begun, there is plenty of exciting market momentum. The majority of prominent altcoins note a strong price increase over the past month. For Chainlink or LINK, that gain equates to 58%. A more than respectable amount, although one cannot forget this momentum, mainly hinges on speculation.
Even that speculation has proven sufficient to catapult the LINK price to a value of just below $50. The price has gone past $50 before, but there is so much volatility to contend with, it becomes impossible to sustain price levels for more than a few hours.
Chainlink has plenty of trading volume to keep traders happy for the foreseeable future. That will not automatically translate to a new all-time LINK price right away. However, the community and various speculators remain confident bigger things are on the horizon.
LINK Price Expectations Are High
Whether one looks on Twitter or Tradingview, most people expect a higher LINK price in the coming weeks. A prediction by IamQueenGee shows the importance of remaining above the $45 level – which LINK appears to do well so far. There will be some significant resistance near $50, which might indicate the current price rejection at that level.
A similar sentiment is echoed by C2M, who firmly believes the Chainlink bull run isn’t over. This enthusiast sees LINK hit $53 fairly soon, followed by a further push to $70. A lot of that momentum hinges on whether LINK/BTC will crumble, however, as altcoins need to keep gaining momentum over Bitcoin first and foremost. Two fascinating charts worth keeping an eye on.
Reaching a value above $50 may be a matter of time for this popular asset. If YMGroup is to be believed, now is the time to go long on LINK before it hits the next resistance level at $54. An interesting outlook that is akin to the two predictions above. When everyone is bullish on a certain cryptocurrency, taking a contrarian stance can be worthwhile, though. Similar to other markets, Chainlink will face a struggle sooner or later.
Recent Developments Bring No Direct LINK Value
One thing everyone needs to be aware of is what makes LINK valuable.
The token is used for payments from requesting contract holders to node operators, based on the prices set by the operator and demand for the data they provide. Furthermore, becoming a node operator requires access to data sources to provide information useful to smart contracts. It can be a lucrative option to explore, but only if the LINK amounts one receives in return has a high enough value to make it worthwhile.
As such, the value of Chainlink’s native token is – like nearly all other crypto assets – speculative first and foremost. As the ecosystem expands and grows, there can be more demand for LINK to fulfill payments and so forth. However, that outcome is never a guarantee. As such, the recent ecosystem developments involving Chainlink will not necessarily drive value to the token.
As Smartzip brings real estate data to the blockchain with Chainlink, a new avenue is explored. RCN integrates Chainlink oracles into its multi-chain paradigm with Binance Smart Chain, which is interesting. However, neither of these developments will yield a higher demand for LINK or influence the token’s price right away.
The value of this token is primarily speculative despite being useful for those who provide data sources to smart contracts. Even so, charging a high price is a good way to deter users from interacting with that source. Unless thousands, if not tens of thousands, data sources become available at cheap rates and millions of smart contracts require the data, it seems unlikely the LINK value will go up, other than through speculation.
There is also the aspect of LINK in the DeFi industry to take into account. Yield farmers and liquidity providers can use this asset to make good money through certain farms, but only as long as the token retains a higher value. Whether that will be the case will heavily depend on where speculators and traders decide to take the markets over the coming weeks.
Header image courtesy of Pixabay, chart from TradingView.com.