Chainlink Trading Predictions For 2021 Onwards

Last Updated July 23rd 2021
13 Min Read

Chainlink brought a lot of energy into the cryptocurrency market when it landed in 2017, founded by Sergey Nazarov. Investors were immediately drawn to Chainlink after its initial coin offering generated a massive $32M in revenue, causing a big splash in the crypto market at the time. This momentum led Chainlink to become one of the top five cryptocurrencies of 2020 in terms of market capitalization. This was a huge leap for Chainlink as a relatively new cryptocurrency. 

Chainlink is currently ranking 15th in terms of market cap, however, they are still a key player in the decentralized finance (Defi) sector. The Chainlink system is described as a decentralized oracle network as well as being a cryptocurrency. The native coin of the cryptocurrency is LINK. However it is the decentralized oracle network which has given Chainlink its central position within the growing Defi sector. 

The oracle function provides data from the real world and delivers it to blockchains in an accessible way. This has made Chainlink the bridge between the world of blockchain systems and the global marketplace. This pivotal role within the Defi sector continues to boost the profile of Chainlink. This is why many cryptocurrency investors are looking to see if Chainlink will be the next profitable cryptocurrency to invest in during 2021. 

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Chainlink’s Position in the Defi Sector

Many cryptocurrencies function by creating smart contracts along blockchains. Like Chainlink, many crypto coins also use the Ethereum blockchain. Chainlink uses the token ERC-677 on Ethereum’s blockchain. This token is also part of how Chainlink translates world wide data into blockchain systems. 

Many blockchain-based cryptocurrencies rely on creating decentralized applications (Dapps) to make transactions and complete endless activities on the blockchain platforms available. None of these Dapps can function without data to feed them. 

Chainlink provides access to the data that these Dapps need, and has cornered a pivotal part of the Defi market. This makes Chainlink a very promising candidate for investment in 2021. 

Chainlink feeds the decentralized community and this then prevents the need for corrupt central systems. It has built a highly distributed system which can check the validity of the data that it processes to ensure that the sources that it pools from are verified. 

Core Features of Chainlink

  • Reliability: One of the key features of Chainlink is that it is built to be tamper-proof. No outside force should be able to manipulate the data or corrupt their system, this is an extremely important factor for investment security and data security on the blockchain. This security is built up by only using trusted nodes to verify the high-quality data that they deal with. They also use cryptographic proofs to link the necessary data with the smart contracts which require it, to maintain an efficient decentralized system. 
  • Connectivity: The Chainlink protocol takes data from all of the application programming interfaces (API) which it scans and creates connections with the user systems. This allows for blockchain integration across all applications. 
  • Results: The oracle solutions that Chainlink uses to integrate applications and data on the blockchain have been rigorously tested. These are trusted methods which are used across the Defi industry and keep different cryptocurrencies and blockchain applications coming back to Chainlink. 
  • Transparency: Most cryptocurrencies use open-source blockchain technology. Their ledgers are public and this is extremely important for the protocols to function. Chainlink keeps all of its processes completely transparent and has its own separate form of verification to ensure that Chainlink’s coding, oracle network and node operators are all bug-free and corruption-free. This keeps the system running in an efficient and secure way that matches in with the functions of the Defi sector as a whole. 

Check Out: Could Chainlink Be A Millionaire-Maker Coin?

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Trading LINK to USD

After Chainink’s success earlier in 2020, the cryptocurrency entered a period of sideways trading which allowed for very little growth. However, the slow progress that LINK was making in April 2020 turned into a surge by mid-August, where a peak took the share price up to $19. Investors were keen to see LINK retain this price increase, however, the price dropped by over half throughout September 2020. 

LINK/USD chart

However, it was not long after this drop that the results of the covid-19 pandemic began to unfold, creating unexpected momentum in the Defi sector. The covid-19 stock market crash pushed public trust away from the stock market and towards cryptocurrency and decentralized finance. This led to positive waves of movement throughout the Defi sector

The mid-year movements for LINK made it one of the earlier coins to ride the wave of positive trading. As the bullish trading pattern took hold LINK experienced two major surges in the first half of 2021. By February 2021 Link had hit a high of $35 and in May they hit their all-time high of $53. This was an increase of 440% which was excellent news for early investors. 

LINK/USD chart

However, May 2021 was seeing bearish trading patterns taking over the crypto market. This lead to an extremely harsh correction for LINK. The LINK price plummeted to $20 less than two weeks after the impressive all-time high had been hit. The June rebound took the price back above the $30 mark but investors were still uncertain what the next quarter would hold for LINK’s prices. 

LINK/USD chart

The market-wide bearish trading has taken the LINK price down further as the coin has been stuck on the same downward trajectory experienced across the crypto market. The trading pattern has been extremely volatile, leading many investors to focus on swing trading to capitalized on this volatility. The choppy trading cycles are likely to see some upswings in price. However, the full recovery of the previous high is subject to the bear market coming to a close. 

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Will Chainlink Rebound from the Last Correction?

The correction in early June 2021 has been a very harsh one for LINK and has taken the shine off of the progress made during the bull market in the first half of 2021. Those who invested earlier on in the coin’s journey have still made considerable returns, and the overall share price is still up 71% at the time of writing. 

However, this is not the level of positive returns expected by many investors. There is likely to be a slow rebound as the bearish trading subsides, but this has an uncertain timeline. The Chainlink company has a strong standing in the Defi sector which will help it rebound. It is unclear if it will return to $50 by the end of the year, as the rebound is likely, but will probably take several months. 

Read Also: Is It Worth Investing in Chainlink?

Predictions for Chainlink in 2021 and the Future

Expert opinions are polarised when it comes to Chainlink. Some analysts are predicting that Chainlink with remain between $37 and $48 for the rest of 2021, but there are a few who favour a speedier recovery hitting new highs of $78. 

Those that favour a steady upward trajectory after this bearish trading cycle ends are predicting highs of $226 by the end of 2022 and the beginning of 2023. However, as the recent surges have traded around the $40 mark, it is difficult to say if the higher estimates are likely to be achievable by 2023. 

The LINK prices are likely to recover from their current low of around $19, however, this may not lead to a substantial surge until 2022. If 2022 does see a new all-time high set, then this would lead to good returns for those entering the Chainlink market while the prices remain low. 

The market adoption of the Chainlink protocol continues to grow, which improves the ability of LINK to be robust against the bearish trading patterns of the current market. 

@PancakeHunny, a yield aggregator on @BinanceChain, has upgraded its price oracles to #Chainlink Price Feeds. Chainlink's decentralized infrastructure & wide market coverage for price data ensure user funds are protected from potential flash loan attacks.’

- @chainlink, Twitter account of Chainlink Official Channel

This is not the only recent expansion for Chainlink, with other’s joining the Chainlink community in recent days. 

‘AI news aggregator @connexun has launched a #Chainlink node to provide dApp developers with an on-chain sentiment index for the crypto industry, ideal for real-time sentiment data on distinct cryptocurrencies or real-time scores on the industry as a whole.’

- @chainlink, Twitter account of Chainlink Official Channel

‘Launchpad insurance protocol @Binstarterio will use #Chainlink VRF on #BSC to secure its allocation & evaluation pool selection process. VRF provides a verifiable source of randomness to ensure the fair distribution of tokens & protocol governing rights.’

- @chainlink, Twitter account of Chainlink Official Channel

These three new adoptions of the Chainlink system are further proof that Chainlink is performing well, despite the market downturn. This continued growth should support the high predictions being realised and a quicker return to bullish trading for LINK. 

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Chainlink Trading Forecast for 2021

The current Chainlink trading trajectory has been a downward one. However, the volatile cycles leave swing trading as a profitable option for those looking for short term returns. For investors looking for long term growth, Chainlink is as difficult to predict as the rest of the Defi sector during this bearish period. 

There are signs that the downward trajectory may be levelling off for LINK, which would be preferable to the lowering prices seen elsewhere in the market. If LINK can maintain a sideways trading pattern until the market becomes more bullish then the rebound will be much quicker and surges in early 2022 have a more likely outcome. 

This is also supported by the market adoption being pushed forward by Chainlink. 

‘This August 5-7, discover how market-leading blockchain projects are using #Chainlink’s expansive collection of off-chain services to accelerate smart contract innovation at #SmartCon. Sign up below today to save your spot for our biggest #blockchain event of the year.’

- @chainlink, Twitter account of Chainlink Official Channel

The company is pushing forward with their plans to grow the Chainlink community and increase its distribution. This signals that the upper estimates that market experts have projected, with Chainlink hitting the $70 mark in late 2021 or early 2022 are more realistic than the current trajectory shows. 

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FAQs

Who is behind Chainlink?

The protocol for Chainlink was co-written by Sergey Nazarov and Ari Juels. Sergey Nazarov is the founder of the Chainlink company, whereas Juels is credited as a technical advisor to the technology build. Juels was a Cornell professor at the time of creation. Nazarov is a pioneer of smart contract technology across the Defi industry.

What is Chainlink?

Chainlink is a protocol that uses decentralized oracle technology to link blockchain systems to the global data network. Chainlink creates smart contracts which use the Ethereum blockchain to complete the secure data connections that are needed for transactions and decentralized applications (Dapps).

How does Chainlink compare to the market?

Chainlink has a core function within the Defi market as the leading source of secure data connectivity linking blockchains to global data resources. This gives them a pivotal role within the Defi sector outside of the performance of their native coin LINK. 

The market adoption of Chainlink has been very good because of this which helps support the crypto coin’s popularity going forward. Chainlink is currently 15th by market capitalization as it has a market cap of $19B at the time of writing. 

Should I invest in Chainlink in 2021?

The volatile trading pattern leaves some room for profitable swing trading, despite the bear market that is causing a downward trajectory across the cryptocurrency sector. As the price is at a low point currently, this is a good time for investors to make an initial jump into the market. 

When the next surge occurs those that invested at a lower price point stand to make higher percentage returns. This is in comparison to those who wait for the bull market to arrive and buy after the prices begin to recover. 

Is Chainlink still going to go up?

Chainlink is at a lower price than expected currently which gives it a high likelihood of increasing in price. Market experts are conflicted about the price rise. Some are predicting it to rise towards the end of 2021, but it could be later in 2022 that the LINK price recovers. 

For greater growth, investors are likely to have to wait out the year until bullish trading like the patterns seen earlier in 2021 return. 

What will LINK prices rise to in 2021?

The most favourable estimates see the LINK price rising to $78 before the end of 2021. However, there are many conservative predictions from market experts which consider the LINK price to be aiming for between $37 and $48 during the final months of 2021. 

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