Chainlink is an open-source decentralized blockchain oracle network. It is based on Ethereum and the native currency LINK is used to pay network operators and as collateral for smart contract agreements. Read on to find out if you invest in Chainlink considering the current market situation.
The network was created in 2017 by Sergey Nazarov and Steve Ellis and launched in 2019. The idea of the network was to transfer tamper-proof data from external sources to on-chain smart contracts.
The principle of smart contracts is not new and was introduced by Ethereum, which allowed developers to build all kinds of applications, agreements and complex contracts around crypto. However, a smart contract would have to stay on the blockchain to remain secure.
Chainlink’s so-called hybrid contracts brought the possibility to connect a blockchain to other sources or other blockchains. This lets non-blockchain sources and enterprises interact with blockchain platforms. That’s why many believers in the future of blockchains like to invest in LINK.
It’s not a single oracle network but an ecosystem made up of multiple decentralized oracle networks working simultaneously, which makes it very flexible.
Chainlink can be used in decentralized finance, for example to distribute payments to workers in real time, to get all kinds of live data like weather or sports scores. The network allows users to connect smart contracts to payment providers, external APIs, bots, medical data, price feeds and so on. It has been a popular tool in gaming and NFTs but has great potential for being used in more “serious” applications.
Many crypto traders started investing in Chainlink in mid-2020, around 6 months before the big bitcoin boom. LINK’s price has been generally following the crypto market, reaching its all-time high of $52 in May 2021 after a new whitepaper was unveiled the month before, which explained how the decentralized oracle networks can transform the blockchain ecosystem.
LINK currently trades at around $6 (as of 6/30/22), so a Chainlink investment of $100 at the beginning of 2020 would give investors the opportunity to sell at +2000%, but they would have had to sell at the top of course.
Despite the current market situation, people who invest in Chainlink now can get bigger returns when the crypto market goes back up, but they might have to wait.
Because it’s actually a useful cryptocurrency, the best way to invest in Chainlink may be to sell your useless altcoins and buy LINK instead.
If you’re asking, “where can I invest in Chainlink?” it’s available on all major cryptocurrency exchanges like Coinbase and Binance. LINK has been recently listed on Robinhood, pushing the price up 10%.
If you’re a strong believer in the future of crypto and are sure you want to invest in Chainlink today, keep in mind that the market may go further down before going up.
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