Chainlink Fails to Continue the Uptrend; Should You Hold LINK?
Chainlink 2.0 brings a new roadmap and staking to the market as we are witnessing a little bit of volatility and some performance from LINK. There could be a further push in LINK’s price after revealing the forthcoming implementation of staking the decentralized Oracle network that furnishes off-chain data required for the appropriate functioning of smart contracts. Chainlink has become a similar role for smart contracts as the TCP/IP does for the internet.
The network is using staking as an incentive to deliver reliable information, but it also has a penalty mechanism for underperforming nodes that fail to attain the target of generating accurate reports consistently. It works as a Proof of Reserve and facilitates DeFi projects to confirm cross-chain and off-chain assets reserves through cryptographic truth and automated audits. It has a real stronghold on offering accurate node data services to DeFi operators. Node operators would now gain a reputation based on the staking size on top of their accuracy and data inputs.
Chainlink has a market capitalization of $3,019,888,181, with the latest training price of $6.48. Of its 1 billion tokens, only 47% have entered circulation. The release of its roadmap and Chainlink 2.0 could improve its market position. Almost the entire DeFi space has a heavy reliance on Chainlink for data inputs to feed its Decentralized protocols. It has become a backbone for the infrastructure of smart contracts and DeFi projects.
Coming to the actual price action of the Chainlink token concerning the bearish market sentiment, LINK has the potential to outperform its competitors. It now targets 50 EMA to establish a positive belief amongst its investors. Read our LINK price prediction to know when the coin will reach 50 EMA.
Chainlink is a great blockchain abstraction layer that revolves around the smart contract ecosystem. 2021 was the best year of the LINK token when it appreciated its value to $52. While it attempted to remain afloat over the $20 mark, Chainlink again stumbled under a profit booking pattern dominating this token since November 2021.
This time the sentiment to sell-off was much more severe, causing a huge decline in market value, dropping it down to $5.5 on the lower limit. LINK has appreciated slightly, but it’s still not enough to bring the buying we witnessed in 2021 April.
On the flip side, considering that 53% of this token is yet to be released in the market, the staking news remains the only hope for enthusiasts to witness some green movement. LINK sentiment has been similar to its June 2022 dips despite appreciation, which points towards staking roadmap impact.
The LINK prices have been hovering above the lows and trading in a safer zone. However, there is a huge probability of LINK tokens being sold off after it takes a decent jump from current levels.