Chainlink (LINK) - One of the Most Promising Altcoins

3 min reading

Chainlink (LINK), even though almost unknown in Poland, is currently one of the most popular altcoins in the world. Only last year it recorded an increase of over 500%, which is more than the most popular cryptocurrency, Bitcoin (BTC), and more than almost all leading altcoins. Moreover, as one of few projects in the cryptocurrency industry, it is becoming more and more increasingly applied.

Chainlink (LINK) - what do you need to know about it?

Chainlink is a decentralized platform based on Ethereum blockchain, addressed especially to business and institutional clients who want to use the so-called smart contracts. To put it more simply - it acts as a middleware between smart contracts and external data sources (which are necessary for their operation), making it possible to securely connect and exchange data from external sources. It also makes it possible to connect to, among others, with other blockchain networks, banking systems or web APIs.

Chainlink has its own cryptocurrency too, the ERC-20 token called LINK, which is used to charge smart contracts' data providers. In total, there are 1 billion LINK tokens. Only 350 million (sold during the ICO in 2017) of them are currently in circulation, though.

Chainlink one of last year's best cryptocurrencies

In 2019, when the "cryptocurrency winter" (that lasted more than a year) ended, the cryptocurrency market experienced a significant recovery. This recovery brought the largest increases since 2017, both for Bitcoin (BTC) and for leading altcoins. After a few months of bull market, the time for a sharp fall in prices came, however. In the second half of the year, almost the entire cryptocurrency market collapsed - cryptocurrencies' market capitalization fell then from around $390 billion to below $180 billion.

Eventually, the majority of cryptocurrencies have significantly decreased in value. Some of them, however, ended the year with a superior profit. Chainlink (LINK) is one of them. In 2019 it recorded an increase of 511%, from USD 0.29 to USD 1.77. Apart from the HedgeTrade (HEDG) token, none of the 30 largest cryptocurrencies managed to achieve a higher return on investment (ROI) last year.

In 2020, Chainlink is doing just as well as in 2019. Since the 1st of January, the increase equals almost 21%. At the moment, the token costs USD 2.14.

Currently, Chainlink is on the 17th position on the list of the largest cryptocurrencies in the world in terms of capitalization (according to CoinMarketCap). It is listed on several cryptocurrency exchanges, including Tokeneo, Binance, Bitbay, OKEx and Huobi.

Chainlink is becoming more and more increasingly applied

The success of the Chainlink project and the success of its token, LINK, is mainly a consequence of the fact that other similar projects simply failed to produce results after the ICO. Chainlink is one of the few projects in the cryptocurrency industry which is being constantly developed and is becoming more increasingly used. Thanks to that, in the near future, there is a possibility for Chainlinkt to overtake other projects, and for the LINK token to increase even further in value.

Chainlink is worth mentioning about because of, among others, the partnership with a leading interbank payment system SWIFT, and connecting banks to smart contracts. The announcement of the partnership with SWIFT doubtlessly had an impact on the exchange rate of the LINK token, which started another rally in the second half of the last year. What is more, Chainlink works with the world's largest computer processor producer, Intel, and one of the largest insurance companies in the world, the French AXA.

In February 2019, Chainlink joined forces with the Celar platform, which enabled the latter to simultaneously reduce costs and increase privacy. The company established a partnership with the Mobilum platform too, which resulted in better liquidity and immediate transactions, as well as in shorter delays in filtering data into the system. In June, the company announced cooperation with Google Cloud. The Alphabet Corporation (to which Google belongs) is considering using Chainlink technology to create hybrid blockchain/cloud applications (the LINK token exchange rate reacted rapidly to this news).

In October, the largest cryptocurrency exchange in the world, Binance, announced a new cooperation with Chainlink. As part of the partnership, Binance will combine its cryptographic data with other blockchain platforms. This step is part of a wider range of actions supporting the development of decentralized financing (DeFi). LINK was also one of few tokens added to Binance without a fee, simply based on the benefits of the project.