- Ethereum Triple halving author believes that Chainlink is on the path to securing all assets in the world.
- For world domination, Chainlink only needs a fraction of its market capitalization to be staked.
- Analysts are bullish on Chainlink price, the altcoin is at an important price level that determines the trend reversal.
Staking could play a small role in Chainlink’s valuation in the long-term. Analysts are bullish on the decentralized oracles token as the network’s rising utility and partnerships could have a higher impact on prices.
Chainlink’s partnerships and integrations fuel bullish narrative in LINK price
Chainlink provides reliable tamper-proof inputs and outputs to smart contracts on blockchains. The altcoin powers execution of blockchain programs with pre-determined conditions in a secure manner increases the utility of the network. Ethereum Triple Halving author Nikhil Shamapant is of the opinion that this blockchain is capable of securing the entire crypto economy by itself.
The decentralized oracles network is partnered with $80 billion worth of smart contracts, working with dApps to ensure the security of price feeds and offer secure minting of NFTs.
Chainlink’s target is to secure the world economy
Shamapant believes that in the hypothetical scenario of a $100 trillion world economy being secured entirely by Chainlink, only a fraction of the asset’s current market capitalization needs to be staked.
To get $100T in security, you'd need ...
— Squish (@SquishChaos) December 5, 2021
1,000 nodes + $100M per node = $100B staked
10,000 nodes + $1M per node = $10B staked
100,000 nodes + $10,000 per node = $1B staked
(Please check my math - I may be misunderstanding the quadratic staking idea entirely)
Further, Shamapant explains that Chainlink network’s valuation is based on its utility and integration rather than a supply squeeze through staking. In the event of a supply squeeze, there is a drop in circulating LINK tokens, driving prices higher.
This phenomenon is currently observed on the Ethereum network. A combination of staking and burn implementation is driving the largest altcoin’s price higher, fueling a bullish narrative.
Shamapant notes that staking has a small impact on Chainlink supply. The network's integrations and partnerships through which it secures complex smart contracts is expected to drive prices higher.
Sure, staking will account for some of the $LINK supply in an end-game, but it's likely to be a smaller and smaller factor (as number of nodes increase especially).
— Squish (@SquishChaos) December 5, 2021
Hayes5178, a pseudonymous cryptocurrency analyst in Twitter, is of the opinion that if Chainlink price breaks and holds around $24.5 as a continuation of the uptrend is likely. The analyst believes that LINK is currently undervalued, setting a $100 target for the next run-up.
$LINK @chainlink
— Simon Hayes (@Hayess5178) December 5, 2021
Still think this should be $100+. Could do with breaking and holding around $24.50 for continuation. Another one that's down quite a lot and market conditions willing could have a nice bounce.#bitcoin pic.twitter.com/QbPbL14HyX
FXStreet analysts have predicted a steep correction in Chainlink price below $20.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Cardano price could trap impatient investors before triggering an explosive move to $0.505
Cardano price shows a consolidation below a stable support level and has yet to reveal a directional bias. The ongoing range tightening will likely resolve as the US markets head to a fresh start this week.
LUNA Classic price hints at a 25% crash as Do Kwon under Red Notice from Interpol
LUNA Classic price reveals a bearish outlook that could unfold over the course of this week. A minor run-up seems plausible, but it is just a move to squeeze the bulls. Therefore, market participants should be ready for a quick reversal.
Ethereum Price Prediction: Assessing the possibility of a post-Merge rally
Ethereum price trades at $1,323 on Sunday, several days after sliding to $1,200. It was a surprise that the largest smart contracts token would give up most of its gains during and after the much-publicized Merge. On-chain data shows a significant reduction in the Ethereum Supply.
Why Chainlink price could lose momentum at $8.00
-637336005550289133_XtraSmall.jpg)
Chainlink price is among the few crypto assets in the green on Sunday. The smart contacts’ price feed oracle token defied the bear market this week to post 23.7% gains. As discussed earlier in the week, the V-shaped pattern matured at LINK brushed shoulders with $8.00.
Bitcoin makes a bullish comeback amid regulatory tension, but lacks confirmation
Bitcoin price takes the first step to recovery but needs solid confirmation that will arrive after a flip of the $19,539 level into a support floor. After a successful flip, investors could expect a move up to an intermediate hurdle at $20,737.