LINK price at make-or-break point as Chainlink aims to secure $2.27 trillion crypto economy
- 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.
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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.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
