With market values collapsing, Chainlink (LINK) has now experienced the greatest loss of any top platform. Its ability to defy the crypto winter baffled analysts and demonstrated the staying power of blockchain technology. Its decline reflects the significant volatility of the crypto space, yet its future may still be bright.
CHAINLINK’S SUCCESS TIED TO OVERALL CRYPTO MARKET
For over two years this unique Ethereum token defied the crypto winter, growing exponentially as others fell. Although extremely volatile, it went from USD $0.18 in mid-2018 to an all-time high of $4.68 earlier this month. Chainlink’s enthusiastic supporters credited this increase to the specific utility of the platform, as well as the deals the development team had made with major corporations.
Now that all crypto prices have steeply fallen, Chainlink has suffered most of all. It is down a whopping sixty percent in under a week. Almost half of this loss has come in the past twenty-four hours.
Whereas Chainlink offers a uniquely valuable benefit to the blockchain space, the merits of its rapid increase in value are debatable. It is thus not surprising that investors have been quick to sell now that the overall market is in a free-fall. Notably, it is designed to be an oracle service that links real-world data to blockchain utilities, such as smart contracts. If these platforms experience a dip, as is the present case, then Chainlink will fall as well.
PLATFORM CAN RECOVER
The present crypto market decline is providing a remarkable opportunity to buy promising altcoin platforms at discount prices. In this context, Chainlink is no different. It has a talented development team and an ambitious vision. Notably, it stands out as one of the few blockchain platforms with a working product and close ties to the established businesses world.
Crypto investors must now decide how important this unique decentralized platform is to the overall blockchain space. Oracles must be employed for decentralized applications to function properly, giving Chainlink a clear path to mass adoption. Nevertheless, Chainlink may still not be worthy of top ten status and a multi-billion dollar market cap.
Importantly, the present volatility of the overall crypto market makes investment in any platform a very risky move. Chainlink could very well bounce back once the market recovers, yet whether or not it will return to its previous value cannot be determined. Nevertheless, there are many LINK marines that are hopeful the crypto asset will return to $4.80 and urge others not to miss out on the current discounted price.
When $LINK was at $4.80 one week ago you were wishing for prices in the $2 range again
Now they’re SUB $2!!
And you’re probably still not gonna buy
Has #Chainlink fundamentally changed for the worse? NO!
This will blow over one day and the game is on again
Don’t be an idiot! https://t.co/iuaGn9lTMQ
— 𝕋ℍ𝔼⬡ℂ𝕌𝔹𝔼⬡ℂ𝕆𝕃𝕃𝔼ℂ𝕋𝕆ℝ (@1BTCequals1BTC) March 16, 2020
Like all cryptocurrencies, it is a work in progress and highly speculative asset. Much more time must pass before its true market value can be determined.
Do you think LINK is a good asset to buy right now? Let us know your thoughts in the comment section below!
Images via Shutterstock, Twitter @1BTCequals1BTC, chart by Coinmarketcap