It looks like Chainlink (LINK) is today’s big gainer. Despite mediocre activity amongst some of the leading cryptocurrency assets – i.e. bitcoin, Ethereum, Ripple, etc. – the asset has shot up by more than 1,000 percent since May of last year.
Chainlink Is on a Serious Roll
Many of the primary cryptocurrencies within the space have been hit hard by the coronavirus-induced global market crash, which ultimately caused assets like bitcoin to temporarily lose as much as 70 percent of their values from one month to the next. To be fair, many of these assets have since recovered. Bitcoin is back to trading well above $9,000 and has remained there since May, but this is small beans when compared to the massive gains experienced by Chainlink.
At the time of writing, the currency has hit an all-time high of nearly $6.50 per token, of which 60 percent has been added to its price over just the last month alone. Chainlink serves as a bridge builder between blockchains, allowing multiple distributed ledgers to work in tandem with each other.
Vance Spencer – co-founder of Framework Ventures – explained in a statement:
We’re seeing this spike as the Chainlink network is getting scaled usage powering DeFi, connecting on-chain DeFi smart contracts to off-chain data feeds like commodities and crypto price data. Firms outside of crypto are also starting to realize the power of enterprise smart contracts powered by robust oracle networks, and the decision of the Chinese government to integrate Chainlink oracles into their national blockchain services network is a legitimately huge deal… Chainlink’s adoption has created incredible community momentum.
As it stands, Chainlink has established partnerships with many notable banking and tech firms over the past few years. These partnerships have been formed with the likes of Google, SWIFT, and Oracle to name a few. Spencer says:
The link rally is being driven by a multitude of factors, the most important of which is its sheer potential to unlock all the promise that smart contract platforms have so far failed to deliver on. We’re essentially witnessing the ‘uberization of data.’ Holders of the LINK token will eventually be able to participate in the crowdsourcing process and will earn money for doing so. For a certain class of investors, the right to provide data for smart contracts is a potentially incredible opportunity to develop steady passive income streams based on the data economy.
Many People Are Jumping On Board
Over the past several months, it appears that many new investors have hopped onto the Chainlink train, primarily out of fear. They’re worried they’re going to miss out on the currency’s massive gains. Spencer explained:
We believe that the winner of the smart contract platform war will eventually be worth several factors greater than Ethereum’s current market cap… If that is the case, then it is only natural that the security layer of that winner, Chainlink, will also grow significantly in value.