- Chainlink, a leading blockchain oracle provider is preparing to launch staking on the Ethereum network.
- Chainlink’s initial plan for staking was to lock LINK tokens for 12-24 months, the team announced an update with more frequent releases.
- Chainlink price surged 22% in the last two weeks, the altcoin is primed for further gains.
Chainlink is eyeing gains ahead of its staking launch on Ethereum mainnet in December. Staking is a core initiative of Chainlink Economics 2.0, a new program offering LINK holders the opportunity to earn rewards.
Chainlink prepares for staking launch on Ethereum network
Chainlink (LINK), a leading blockchain oracle provider is preparing to launch staking on Ethereum. This is part of LINK ecosystem’s long-term sustainable economic program for the blockchain network. Chainlink Economics 2.0 is focused on providing multiple opportunities to help LINK holders earn passive income.
Chainlink Economics 2.0
Staking on LINK is a crypto economic security mechanism in which stakers commit LINK tokens in smart contracts to back certain performance guarantees around oracle services. A blockchain oracle is a third-party service that provides smart contracts with external information and serves as a bridge between blockchains.
On December 1, Chainlink announced an update on staking initiatives. The oracle provider confirmed that LINK staking will go live as early as December 6 in beta mode on the Ethereum mainnet.
Originally, Chainlink announced a 12-24 month lockup period. In their latest announcement, the team confirmed that there will be rapid iterations and frequent releases. The first phase of Chainlink staking is a beta release, the staking pool will support the ETH/USD data feed on Ethereum mainnet.
Stakers will earn rewards and help secure Chainlink’s data feed, specifically by participating in a decentralized alerting system that flags if the data feed has not met certain performance requirements regarding uptime.
Chainlink price could face resistance at $8
The oracle service provider’s token LINK yielded 22% gains for holders in the past two weeks. Chainlink is one of the few cryptocurrencies climbing higher despite marketwide uncertainty. LINK experienced turbulence during the week and Chainlink price climbed 12.3%.
Chainlink started the week strong at the $7.38 floor and climbed to the weekly high of $7.74. A test of the $8.00 level is likely. At the time of writing Chainlink is trading at $7.55.
Chainlink price has tested the $9.50 level three times since June 2022, as seen in the chart below. This is a key level for Chainlink price. Below $9.50, $8.50 and $8.02 are the two resistance levels.
The resistance at $8.50 coincides with the 200-day Exponential Moving Average.
LINK/USDT price chart
Michaël van de Poppe, a leading market analyst and founder of Eight Global also anticipates that Chainlink price will cross the $9.00 level.
#Chainlink showing a ton of strength, also expecting continuation there to happen.— Michaël van de Poppe (@CryptoMichNL) November 29, 2022
If I didn't have a long yet (but I do), then I'd be targeting for something like this in which I'd be looking at $9 area for a TP. pic.twitter.com/rRdv4eL91H
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