Chainlink is an integral part of crypto's future.
Chainlink (LINK 5.11%) has been a rare bright spot in an otherwise dreary crypto market as of late, with a 28% gain over the past week and a 6.5% gain over the past month. But the $4 billion market cap cryptocurrency is still down a long way from its all-time high of more than $20 billion last May and has fallen about 55% year to date.
With recent momentum and some exciting new developments ahead, is Chainlink a buy for long-term investors?
Image source: Getty Images.
What is Chainlink?
The aptly named Chainlink is an oracle chain that essentially links blockchains to the outside world by serving as middleware between smart contract platforms and external data sources by providing reliable, real-world information to smart contract platforms. For example, Chainlink can provide a smart contract with data and results such as prices from financial markets, weather, and even sports results.
Why is Chainlink valuable?
As blockchain technology becomes more widely adopted by global businesses, a platform like Chainlink will become more important and valuable. For example, imagine a smart contract that facilitates a wager on a baseball game. Chainlink can be utilized to provide the score of this game to the smart contract platform and validate it to ensure that the smart contract is executed properly, which is important in a crypto industry that eschews intermediaries.
Chainlink could also be used to validate the prices of stocks and other cryptocurrencies in order to facilitate options and futures trading in the crypto derivatives market. Stablecoins that are pegged to the price of real-world assets like gold or oil can use Chainlink to verify the price of these commodities. Chainlink could be used by companies to provide data from Internet of Things sensors to smart contract platforms and to provide weather information to the insurance industry for applications like crop and flood insurance. There is a limitless array of use cases here.
Major changes to Chainlink
The long-term value of Chainlink has been bolstered by some recently announced developments on the horizon, which will constitute major changes to the Chainlink network. The company's developers laid out a new roadmap for the company and announced that staking will be coming to the Chainlink network in the second half of 2022.
As a proof of stake cryptocurrency, staking LINK tokens will incentivize more Chainlink holders to participate in the network and earn rewards by committing their tokens to staking, which will help to secure and enhance the network. Chainlink holders will benefit by earning passive income via fees, and over time, as Chainlink becomes more widely adopted, the fees generated by the network should grow and in turn increase the rewards for stakers.
The new roadmap also introduces a new feature called proof of reserve (POR), which will allow for the automated audit of a company or fund's cryptocurrency holdings, which should help to boost transparency in a market that would benefit from it after the fall of stablecoin Terra damaged trust in the crypto industry.
Is Chainlink a buy?
As a valuable part of the crypto ecosystem providing an important service that will become more important as blockchain technology becomes increasingly integrated into the global economy, I view Chainlink as a long-term buy and hold. The introduction of staking and proof of reserve are additional short-term catalysts that could give the network a jump-start.
Michael Byrne has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chainlink. The Motley Fool has a disclosure policy.
FAQs
Is Chainlink a buy? As a valuable part of the crypto ecosystem providing an important service that will become more important as blockchain technology becomes increasingly integrated into the global economy, I view Chainlink as a long-term buy and hold.
Is Chainlink a good long-term investment? ›
Chainlink tokens called LINK serve as currency to pay Chainlink network operators for retrieving and preparing off-chain data and performing computations. Is Chainlink a profitable investment for the long term? Yes, Chainlink is a profitable investment in the long term.
Which crypto can give 1000x in 2024? ›
The 1000x GameFi Token of the 2024 Bull Market
The increasing popularity of blockchain-based games and the surge in trading volume echo the sentiment that GameFi tokens like PIKA could see up to a 1000x increase in value before the year ends.
What crypto does Motley Fool recommend? ›
Anders Bylund has positions in Bitcoin and Grayscale Bitcoin Trust (BTC). The Motley Fool has positions in and recommends Bitcoin.
Does Chainlink have a future? ›
Our real-time LINK to USD price update shows the current Chainlink price as $14.37 USD. Our most recent Chainlink price forecast indicates that its value will increase by 6.82% and reach $15.35 by May 07, 2024.
Can Chainlink reach $100? ›
The Chainlink (LINK) price can reach $100 in 2025, though not later than 2026. The pre-requisites for LINK to move to $100: get past the $16.91 level in 2024, and clear ATH at $52.70. Chainlink (LINK) is an oracle-based network with a large number of partnerships.
Why not buy Chainlink? ›
Disadvantages of Investing in Chainlink
First of all, token has no utility in the Chainlink ecosystem for now. The token is not used in any way and all of its value is gained from speculative reasons alone. This is due to the fact that Chainlink's long-awaited staking platform is not online.
Which crypto has the most potential in 5 years? ›
7 Cryptos With Explosive 5X Potential by 2025
- Ethereum (ETH-USD): Even with its relatively high price ETH has 5x upside.
- XRP (XRP-USD): XRP is free legally and remains the top cross-border transaction token.
- Cardano (ADA-USD): Strong fundamentals and low price are the prime factors for Cardano.
The index includes top tokens like $SOL, $ETH, and $WBTC- all of which are expected to see considerable gains in 2024 - making this a fantastic DeFi platform primed to explode throughout the year.
Which meme coin will reach $1 in 2024? ›
Dogecoin ($DOGE)
Spotlight Wire Dogecoin, commonly known by its moniker DOGE, being the world's first meme crypto is the strongest candidate on this list to achieve 1$ valuation. In the 2021 bull market, Dogecoin nearly reached this goal, hitting a high of $0.74376.
CRYPTO: BTC
If you're looking to gain exposure to cryptocurrencies in your portfolio, it's best to keep things simple and focus on the most valuable digital asset out there. It shouldn't be a surprise that I'm talking about Bitcoin (BTC -1.44%). Here's why it's the ultimate cryptocurrency to buy with $1,000 today.
Which crypto to hold long-term? ›
Bitcoin (BTC)
Institutional investors have increasingly adopted Bitcoin, reflecting in its growing acceptance as a store of value and a hedge against inflation. Its security, powered by a decentralized and robust blockchain, makes it a staple in most long-term crypto investment portfolios.
What crypto should I invest $1000 into? ›
It's understandable if you believe that the best move is to wait until there's a huge pullback. But I think that would be a mistake. Bitcoin still has huge upside, which makes it the ultimate cryptocurrency to buy with $1,000 right now.
Is Chainlink a risky investment? ›
Risks and Rewards
Market Volatility: Cryptocurrency markets are known for their volatility, and Chainlink is no exception. Price fluctuations can be significant, and investors should be prepared for potential losses.
What is better than Chainlink? ›
Solana. Solana is a fast and secure blockchain that can withstand censorship. It provides the open infrastructure necessary for global adoption. Solana is the platform that has been chosen by the best projects in DeFi, Web3 and blockchain gaming to be built on for the long-term.
Why Chainlink is the best investment? ›
Chainlink brings some major benefits to the network. Oracles are important to network expansion. They are at the core of some of the most exciting developments in the sector. For example, DEXs (decentralized exchanges) utilize oracles to determine the price of cryptocurrencies without offering an order book.
What will Chainlink be worth in 2030? ›
Chainlink (LINK) Price Prediction 2030
| Year | Price |
|---|
| 2025 | $ 15.20 |
| 2026 | $ 15.96 |
| 2027 | $ 16.76 |
| 2030 | $ 19.40 |
1 more rowWhile external factors and market trends can influence the future price of Chainlink, its strong fundamentals, growing adoption, and expanding use cases position it as a promising project in the blockchain space.
What will Chainlink be worth in 2050? ›
Chainlink (LINK) Price Prediction 2050
With its massive potential for growth and adoption, Chainlink is expected to remain a major player in the cryptocurrency market for years to come. By 2050, our long-term Chainlink price prediction estimates that the maximum price could reach up to $391.12.
