Ever since Chainlink crypto got to an all-time high of over $52 in May 2021, it hasn't happened again.
The host of InvestAnswers, in his YouTube video, mentioned that this leading oracle network could recover despite being down over 85% from its peak price. It is still unclear if his analysis is specific, but here's how Chainlink works.
How Chainlink Works
Chainlink is one of the crypto coins that use oracles to bring information into the platform and smart contracts. These oracles are marked for performance and accuracy with a reputation score. The network uses this means to ensure the forecasters are accurate and reliable.
Chainlink first entered the market in 2017, worth about $0.20. It rose to $1 in 2019 and spent much of 2020 above $10, closing the year at about $11.46. The token experienced a recovery due to increased interest after a token unlock that brought $117 million worth of LINK into the market.
Although based on an Ethereum blockchain, it can operate across blockchains. The token can be bought, sold and even traded on exchanges. It can also be staked to get rewards.
Chainlink Price Prediction
From the latest data, the Link crypto price stands at $7.38, and it is ranked 18th in the entire crypto ecosystem with a circulation supply of $4,110,817,397.95 and a market cap of 556,849,970 LINK. Over the past week, LINK has shown an upward trend, increasing by 5.9%. In the last 24 hours, it has increased by $0.26 in its current value.
According to the technical analysis of the previous years, it is estimated that in 2024, the minimum price of Chainlink crypto could be around $10.01. On the other hand, the maximum price could be around $9.99. However, an average trading price could be approximately $9.97.
Over the last month, link crypto price increased by 19.2%, adding an average of $1.42 to its current value. This has given traders an excellent opportunity to invest without any cause for alarm. Its rapid growth only suggests that the coin can become a solid asset if it continues growing more significantly.
In a recent video, an analyst with over 447,000 YouTube subscribers said something about Chainlink. He mentioned that token inflation could make it difficult for Chainlink crypto to hit new highs in the next bull run. It was concluded that there are more LINK tokens in circulation now.
This is because compared to the all-time high of May 2021, there are 31% more tokens now. This means when reaching today's price to the previous price, getting the same price level would require more buying pressure because the market cap has increased over time.
The analyst also recorded that the Chainlink vs. Ethereum pair (LINK/ETH) is currently down by nearly 90% from its peak. The only way the pair can bounce back is when there is increased demand for LINK. Even though the token's all-time low was recorded at $0.13, Chainlink is currently trading for $7.33, down by less than 1% over the last 24 hours.
Watch the reveal here...