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Chainlink: the price and performance of LINK

Chainlink is a decentralised oracle network built on the Ethereum blockchain.

Understanding the price of Chainlink

What is Chainlink ?

Chainlink is a decentralised oracle network. Since the creation of Ethereum and the increasing use of decentralised apps in 2017, smart contracts have gradually proven their worth. Their impact is broad, going beyond the finance and insurance sectors into governance methods with further uses expected.

How did Chainlink solve the problem posed by the use of centralised oracles?

Before the launch of Chainlink, its parent company SmartContract.com would use centralised oracles to connect smart contracts with off-chain data. However, these connections to external data flows had to pass through a third party.

While the smart contracts would inevitably execute as predicted, there were weaknesses in the connection to off-chain data. Oracles act as a bridge between the real world and the blockchain, providing external data when needed by an application. If an app relied on a single oracle for the data, then that oracle could easily provide the wrong data.

Chainlink, as a decentralised oracle network made up of independent nodes, replaced the use of the centralised oracles which presented vulnerabilities in information security and accuracy. Chainlink can call upon its network of independent oracles whose role is to provide, individually, the required data. By aggregating the results provided through the Chainlink protocol, the end user can have greater certainty that the information ultimately entered into the smart contract is correct. This technology is of interest to many sectors beyond just cryptocurrencies (for example, sports betting), which could prove to be a wind in the sails of Chainlink and its price.

What role does the LINK token play?

Chainlink has set up a financial incentive system where honest oracles are compensated and dishonest ones are penalised. The LINK token is the unit of account in the Chainlink economic system.

LINK:

what it is, what it is worth and why it should be watched

What is LINK?

When talking about Chainlink, we should draw a distinction between the economic system known as Chainlink and its token called LINK. In other words, Chainlink is an ecosystem built on the Ethereum blockchain and LINK is the digital token used by that ecosystem.

Accordingly, the price of LINK is the price at which this token can be exchanged. Like all other crypto-assets, LINK fluctuates in price according to its supply and demand on the market. These changes in the price of LINK can be closely tracked thanks to Coinhouse’s real-time price updates on LINK.

 

What is the current price of LINK?

To find out LINK’s price at any given moment, you just need to look at the updated price at the top of this page.

 

Why track its price?

Checking the Chainlink price lets you know how much LINK is worth as well as how it is performing. Knowing this and combining it with further relevant information will enable you to decide whether you should buy or sell. For this reason, all investors and aspiring ones should keep an eye on the price of Chainlink.

How has Chainlink performed?

How has the price of LINK moved since the start of 2022?

On 1 April 2022, LINK was priced at €15.28. Chainlink saw its value vary greatly over the first week of April – it rose to €16.37 on 4 April before dropping below €14 on 9 April.

Chainlink has been in a downward trend over the first quarter of 2022: although LINK was worth €17.26 on 1 January and then started a swift rise to €24.64 on 11 January, it then began to fall hitting €14 twelve days later. Since then, Chainlink has seen its price oscillate between €12 and €16.50. Such significant fluctuations can allow certain investors to make short-term gains.

 

A brief history of Chainlink’s price

Chainlink was created in 2017 and its token LINK was launched on 9 November that year at an estimated price of €0.19. It had an inauspicious start in the market and LINK saw its price reach its lowest-ever level a few days later. By 29 November 2017, LINK had a price of around €0.125.

What followed were several run ups in price allowing LINK to hit its first record of €16.14 on 16 August 2020 before increasing a further 360% from the start of 2021. Chainlink hit its all-time high on 10 May 2021, when the price of 1 LINK was worth €43.32. Since its launch until 2022, Chainlink’s price has risen over 10,000%!

How is the LINK price determined?

Supply and demand

Supply and demand determine the price of any financial asset. All free-floating currencies see their value fluctuate based on the how much is available and how much is wanted on the market. For Chainlink, its price depends on how many people are buying and selling its LINK token.

If investors are confident about Chainlink, they will buy LINK with the idea of selling it later at a higher price. This buying volume causes a rise in the price of Chainlink. Like traditional money, the economic environment also influences the confidence of investors and, as a result, Chainlink and its price.

 

Investors

Investors therefore have a hand in moving the price of LINK. In the market, their behaviour in relation to LINK will depend on several factors, including how they view the currency and the Chainlink project itself.

Crypto-assets are a new market, so they need a good project to convince investors to part with their money and invest. The quality of a project can be evaluated in several ways. The blockchain used must be robust and regularly improved. Chainlink for its part is considered reliable, quick and secure. The changes expected to be carried out in the future on the project are also very important in attracting investors. Because Chainlink is one of the few blockchains using a network of decentralised oracles, its modifications are closely scrutinised. This is all the more given the blockchain technology offered by Chainlink can be used in many other domains apart from cryptocurrencies and an increasing number of people are using it.

After five years of existence made possible by the earnest work of developers, Chainlink has a solid foundation and a market capitalisation of €6 billion. Built on the second most famous blockchain, Ethereum, Chainlink with its token LINK is one of the 30 largest crypto-assets in terms of market cap. It is also one of our most promising cryptocurrencies to follow for 2022.