Chainlink graphic
Source: Chainlink Twitter

Chainlink’s (LINK) Growing Use Cases Justify Its Price Prediction

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Oct. 20 2021, Published 9:48 a.m. ET

In the last few months, the crypto space has recovered once again after struggling with China’s crackdowns. Along with Bitcoin, Ethereum, Cardano, and Solana have surged. However, some altcoins have not seen such explosive gains. Chainlink, for example, has risen just 130 percent year-over-year despite several positive developments in its network and partnerships. What's Chainlink’s (LINK) price prediction?

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Chainlink, a decentralized oracle network, plays an important role in the real-world implementation of blockchain technologies. It provides a link between blockchain networks and the outside world by enabling smart contracts to securely interact with real-world data and services. It also provides multiple layers of security, building trust among users.

The latest developments in Chainlink

In Sept. 2021, up-and-coming blockchain network Cardano partnered with Chainlink for oracle services. Cardano, which is now the fourth-largest cryptocurrency by market cap, aims to use Chainlink’s oracles to accelerate the development of its DeFi ecosystem.

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chainlink rising use cases
Source: Chainlink Facebook

Additionally, Firework Games has revealed that it integrated Chainlink’s verifiable random function (VRF) on the Polygon mainnet. Chainlink has also been integrating with other DeFi protocols, deepening its adoption.

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Chainlink's price predictions

  • WalletInvestor expects Chainlink to rise 76 percent in one year and 365 percent in five years.
  • According to Coinpedia, on average, LINK could grow 65 percent by the end of 2021 and nearly 650 percent in five years.
  • Gov Capital sees LINK almost doubling in a year and growing eightfold in five years.

While forecasts vary for the token, most see an impressive upside. Chainlink has the potential to become the industry's most widely used decentralized oracle network.

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Is Chainlink a good investment?

Chainlink has been proving itself with continuous integrations with other projects, and now boasts nearly 865 integrations. Moreover, the network has been proactive in launching products and developments, building investors' confidence in its potential. According to Forbes, if Ethereum is leading the blockchain race, Chainlink is leading the oracle race, with over $40 billion in smart contracts.

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Critics sometimes ask what's stopping other smart contract developers from designing their own oracles. The answer is that several DeFi protocols have lost a lot of money due to unaudited and centralized oracles being compromised. Chainlink ensures data sanctity through multiple layers of security. Another factor working in Chainlink's favor is its utility outside the crypto world—Alphabet, for example, is using Chainlink to develop hybrid blockchain applications on Google Cloud.

Chainlink's real-world uses, growing adoption, and potential make it look like a good long-term investment. But as it's a cryptocurrency, it's best-suited to investors who can stomach volatility.

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