Last year saw the meteoric rise of Chainlink (LINK) and a host of altcoins that are directly or indirectly related to the decentralized finance (DeFi) movement. Those who follow our regular LINK price predictions know that we have long recognized the true potential of this alternative coin and kept the bullish stance regarding it throughout 2020 and will maintain it for the duration of the maturing cryptocurrency bull market, having absolutely no reservations about whether or not LINK is a good investment.
It’s the coin that has already made a huge splash in the crypto market and will continue to awe traders and investors in the months, and possibly years, to come because it’s an all-around solid coin that has its value built on the foundation of superior fundamentals that, without any exaggeration, are already benefiting the entire industry.
The year 2020 was the time when Chainlink made itself heard and established a strong presence at the top of global cryptocurrency ranks. At the moment, the token for smart contracts and blockchain oracles is sitting firmly in the 9th spot, with a market capitalization of $8.8 billion, which has skyrocketed along with the price from a mere $632 million at the beginning of 2020. We calculated that if the maximum supply of LINK, which stands at 1 billion tokens, would have been in circulation, the diluted market capitalization of the hyper-gaining altcoin would have been around $22 billion, given LINK’s current price at $22.2 that was established after 66% growth in the USDT market last month. But it hadn’t been all rosy for the rapidly rising token in 2020.
LINK began the year at the price level of $1.8, had a brief bull rally in the period from January till March, then crashed back to $1.36 under the enormous selling pressure, which occurred at the beginning of the lingering coronavirus crisis, and then went on a real trip to the Moon, having exploded to the upside by a staggering 1400% in a span of some 154 days.
1-year LINK/USDT chart. Source: Coincodex
This absolutely magnificent run ended with the price of LINK reaching the intermediate all-time high that had been beaten a few days ago, following a rather prolonged correction, which saw the price collapsing to $7.3 at one point but then establishing a firm support above $10.8. After spending some time struggling to beat the resistance at $14, the whales have organized a classic bear trap a few days before Christmas, having momentarily pushed the LINK price in USD to $8 only to force it 186% to the upside in the three weeks that followed, consequently establishing the new all-time high at $22.65 that is likely to be beaten several times over in 2021. This near-term LINK price prediction is based not only on technical analysis, which we will conduct a bit later, but also on the ground of several on-chain metrics.
Number of active addresses. Source: Glassnode
First of all, the chart above clearly demonstrates that the number of active addresses is in the steady uptrend, coinciding almost perfectly with the actual LINK price action. The growth of active addresses is indicative of the steady demand for the coin that has its spikes and troughs, of course, but maintains the positive dynamic that is going to improve in 2021 and all the way through to 2025 as the Chainlink ecosystem and its oracle solution, which are going to be described in detail, is going to be adopted across the cryptocurrency industry that remains in desperate need for the reliable off-chain data.
What’s also important to understand about LINK is that this token exercises its function of being the lifeblood of the oracle network to the fullest since nearly a third of its current supply is locked in smart contracts; 35% is allocated for rewarding node operators, while only 40% is available for speculation.
LINK token supply chart
Add to that the number of transactions that are being sent directly to smart contracts, and you’ll have undeniable proof of the viability of Chainlink’s blockchain solution that will serve as a backbone to the continuous growth of LINK price in the next five to ten years.
LINK transaction counts chart
All these metrics, along with the showings of the Cryptocurrency Volatility Index (CVIX) and financial data analysis by our proprietary algorithm, are being taken into account by us when creating cryptocurrency price predictions for LINK and a plethora of other coins. But the general conclusion with regard to Chainlink is that the coin has one of the highest adoption rates in the industry, making LINK a good investment for months and years to come, especially if you were dextrous enough to stock up on this altcoin during the recent dip because unless there is a black swan event happening to the cryptocurrency market in 2021 or 2022, we might never see LINK priced at $8 again.
1-week LINK/USDT chart
Going back to technical analysis, which was carried out on the weekly LINK price chart, we see enough signs to conclude that there is a bullish bias in this market right now that will facilitate the rise to the next psychological price level at $30 over the course of this year. Right now, we see the explosive move to the upside after the mentioned bear trap had turned into a hammer candlestick that found support at the lower line of Bollinger Bands (BBs) that allowed to keep the structure of the macro uptrend intact. The expansion of BBs suggests that the price of LINK has entered the period of increased volatility, which falls in line with our short-term LINK price prediction, delivered by our algorithm, which says that in a span of a month, the value of LINK in USD will see the 43.5% appreciation that will land the coin on the right side of the $30 region - $31.9, to be precise.
1-year LINK prediction chart
The predicted episode of another of LINK’s upside trips is substantiated by the swelling buying volume on the weekly time frame as the price is attempting to break the newly established macro resistance that coincides with the all-time high. In addition, after a period of bearish activity, MACD has reversed to the upside and formed the bullish crossover on the backdrop of the rapidly growing green histogram, which clearly shows that the bulls have got back into the driving seat in this market that further lifts the expectations of another strong rally that is likely to last for the entire duration of 2021.
To conclude the LINK price prediction for 2021, our proprietary algorithm dictates that by the end of 2021, the altcoin will rise by 155% and reach the height of $56.63, thus making Chainlink one of the worthiest investments in 2020/2021. But before LINK breaks the macro resistance and confirms the new support above $23 - $24, one shouldn’t disregard the probability of a short rollback either to $19.7 or even $16.5 since this market would remain extremely volatile until the Bollinger Bands are wide open.
1-year LINK market capitalization
At the same time, the market capitalization of Chainlink would also see a lot of positive dynamics. Remember the diluted market capitalization of $22 billion? According to our calculations, LINK will be able to reach that seemingly incredible figure - $22.7 billion, to be precise - over the course of the next 12 months, which would be an astonishing achievement for the altcoin that started out with the marketcap of $57 million.
As always, when it comes to the long-term price prediction regarding any cryptocurrency, including Chainlink, we supplement our price prediction model with an in-depth fundamental analysis because the success of any cryptocurrency and its underlying technology will depend on its adoption rate.
Frankly speaking, we don’t have the slightest doubt that Chainlink will be a key component of the future blockchain-based financial system because it offers a unique solution that has already been widely accepted across the entire cryptocurrency industry, especially the representatives of the DeFi movement, many of which rely heavily on the off-chain data.
But before we dive deeper into the technical aspect of Chainlink, and how they will affect the price of LINK in the next five years, we would like to provide concrete numbers, so that you could appreciate the sheer magnitude of the macro price move that lies ahead, and how those who bought LINK at $1.8 a little while back could be “buying Lambos” is a few years’ time.
5-year LINK price prediction chart
Our long-term price prediction model dictates that by the curtain fall of 2022, the price of LINK will see a steep 396% rise, allowing the price to travel above the ultra-important psychological level at $100 and straight to $109, where it will find long-standing support.
But it would be 2023 that will give the start to a true parabolic rise of the price of LINK in USD, which should be the time when the DeFi movement, and the rest of really viable blockchain solutions that require cross-chain communication and data feed, will gain global traction. In three years, the LINK price will soar by 884% on the back of mass adoption of its oracle and smart contract solutions by both blockchain and real-world business enterprises, whereas the price will conquer yet another psychological level at $200, landing at $216 by years’ end.
The year 2024 will see the continuation of the incredible bull run on the part of Chainlink as the price will see the 1862% appreciation from its current level and increase more than two-fold in comparison to 2023, hitting the ceiling close to $450. Finally, the price of LINK in 2025 will stand at $863, following another twelve months of consistent price increase, as seen on the LINK price chart above. That would conclude the five-year bullish span, which will see the value of the altcoin go up by 3823%, something that the majority of other coins won’t achieve in their entire life span.
5-year LINK market capitalization prediction chart
Naturally, the market capitalization of Chainlink over the next five years will fatten up along with the price. According to our calculations, the market cap of LINK will increase to $346 billion by 2025, which is likely to lift the coin in global rankings to the 5th or even 4th position, effectively surpassing the failing altcoins like XRP and Bitcoin Cash (BCH).
What will push Chainlink to these great heights is its ability to ensure the provision of reliable, secure, and decentralized off-chain data through its robust oracle network that has an extensive collection of nodes. Below you can see a diagram that depicts the essence of Chainlink, which is being the middleware solution that bridges the gap between the real-world data and the realm of blockchain.
Chainlink architecture. Source: CoinCentral
Essentially, Chainlink is that “God protocol” the legendary cryptographer Nick Szabo had been ruminating about back in the 90s, which is deemed to substitute trusted third parties with a trustless and fully automated protocol. The main purpose of Chainlink nodes is to provide seamless access to the easily verifiable off-chain data regarding bank payments, financial markets, and other types of data mentioned in the diagram above. Such verified data is required by smart contracts (Ethereum, Cardano, Chainlink itself) to operate correctly. Apart from feeding the off-chain data to smart contracts, the Chainlink network provides for the interoperability between different types of blockchains, which is something that the entire industry has been yearning for quite some time since most blockchains are currently operating in an autonomous mode being unable to communicate with peers, which constitutes a huge roadblock on the path to mass adoption of this revolutionary technology.
Besides, the LINK token itself holds the fundamental advantage over other Ethereum-based tokens since its technological standard (LINK is the ERC-223 token) allows for the simultaneous reception and processing of a transaction by smart contracts thanks to the “transfer and call” functionality, which makes this token far more efficient than those of the ERC-20 standard, all of which makes Chainlink a prime solution not only for the DeFi space (Synthetix, Aave, Celsius Network, and Bancor are already using Chainlink). There are some well known non-Ethereum projects that have already integrated this oracle solution, most notably Tezos and Polkadot, whose coin has exploded past $10 these past few days. In fact, there are dozens of blockchain projects that have already integrated Chainlink and this list will continue to grow over the next five years.
Moreover, the project has been actively extending its partnership network beyond the blockchain space, reaching out to real-world business entities. For instance, Chainlink has recently partnered with T-Systems, a Frankfurt-based IT company that is a subsidiary of Deutsche Telekom, one of the largest telecom corporations in Europe. Within the framework of this partnership, T-Systems will run one of Chainlink’s nodes and feed it the real-world data in exchange for rewards in LINK, thus becoming one of the few companies that earn a part of their revenue in crypto.
To summarize, while the overwhelming majority of other blockchain projects are working on a concrete solution for their respective niche, Chainlink is there to serve them all and become the foundation for the much-needed mass adoption of crypto, which, in turn, would have an immensely positive effect on the price of LINK.
It’s quite apparent from the analysis above that Chainlink is here to stay and act as a central figure in the blockchain revolution, the hottest period of which will occur in the next five to seven years, during which the LINK price will enjoy ceaseless appreciation.
We predict that in the period from 2025 till 2027, LINK will keep on striving to the upside, though not as aggressively as during 2023 - 2025. We believe, and our proprietary algorithm confirms it, that by 2027, LINK will be traded above $1000, which we deem as a fair price for that coin that serves as the foundation for the oracle network with such an array of use cases. However, by 2030, the market will reach the peak of its maturation, and the price of LINK in USD will stabilize around $1200 - 1300.
Now might be the last opportunity to buy LINK at the price of under $20.
Chainlink offers unique oracle services that facilitate off-chain data feed and have the interoperability feature.
By the end of 2021, LINK will be priced at $55.
In 2025, traders will see LINK above $800.
By 2030, LINK will establish a foothold above $1000.
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