• Overview
      • Secure Digital Markets Inc (SDM) is a leading global digital asset trading, marketing making, and treasury management firm with an MSB license that provides boutique financial services to small medium and large capital management groups, payments and forex corporations and other financial institutions, governments and individuals. SDM was founded in 2017, is headquartered in Toronto and New York City with partners and representatives in financial centers around the world.

    • About Us
      • Secure Digital Markets is committed to providing cutting edge trading solutions to financial institutions and global liquidity to digital asset issuers with a mission of making blockchains and digital assets mainstream. SDM is a specialized digital asset trading firm within GDA Capital Corporation, a diversified capital markets firm with operations around the world.

    • Who we serve
      • Secure Digital Markets serves institutional clients across the blockchain industry including miners of bitcoin and alternative digital currencies, capital markets institutions, active traders, exchanges, BTM Networks, and high net worth individuals.

    • Products
      • Secure Digital Markets has a suite of financial products including SDM.live that provide us with off market liquidity at all times of bitcoin and alternative digital currencies.

    • People and Culture
      • We pride ourselves on our innovative corporate culture and passionate team members. Our organization is only as good as our people and we strive to consistently raise the bar by bringing the smartest group to the table.

    • Leadership
      • See the biographies of our firm’s board of directors and senior management.

    • Locations
      • Locate our offices around the world in Canada, the United States and globally.

    • Overview
      • We provide liquidity and market making strategies to digital asset issuers and large holders and boutique trading and treasury management strategies to individuals, hedge funds, family offices, private equity funds and other capital management firms. Learn more about our various businesses and find a solution that meets your personal or business needs.

    • Trading
      • Trading and liquidation services to help organizations issuing or holding digital assets with liquidity and boutique trading and investment strategies for individuals and capital management firms.

    • Treasury Management
      • Customized treasury management strategy to liquidate digital assets over set periods of time with specific return goals across global exchanges to ensure limited price movement and hedge long term exposure to any particular asset.

    • Digital Asset Custody
      • Customized custody solutions implementing secure institutional software infrastructure.

    • Cash Management
      • Cash management services for firms who transact to buy or sell digital assets using cash.

    • Overview
      • Our people share in our mission of advancing the digital asset and blockchain industry by providing access to global liquidity and market making strategies for digital asset issuers and boutique digital asset trading strategies for capital management firms and other financial institutions.

    • Our Founders
      • Our founders our pioneers in digital asset and blockchain trading.

    • Our Team
      • We commit people, capital and ideas to help our clients, shareholders and the communities we serve to grow.

    • Business Principles
      • Secure Digital Markets works with the highest ethicacy and always ensures that we ca can deliver for our clients. In addition to our trading and brokerage services, we look to add value in other ways by being a part of our network.

    • Overview
      • Secure Digital Markets analysts and traders share insights, market research and industry updates that are impacting the blockchain industry.

    • Corporate News
      • Recent milestones and progress from Secure Digital Markets and our subsidiaries

    • Market Insights
      • Digital asset trading, treasury management and liquidation tips for hedge funds, private equity firms, etc

    • Trading Information
    • FAQ
      • Commonly asked questions related to digital asset trading, capital management, treasury management, liquidity

  • Careers
  • Contact
  • Trade with SDM
chainlink price analysis

Chainlink Price Analysis

  • Chainlink’s native token, LINK, has been one of the top performers in 2020, reaching a new all-time high and even outpacing Bitcoin’s growth
  • Chainlink’s meteoric rise is partly fuelled by the DeFi craze that is gripping the crypto community right now; Chainlink’s oracles are integral to DeFi
  • Chainlink price analysis shows market sentiment is generally favourable for LINK’s future considering the coin’s performance in the past two years and Chainlink’s various partnerships

The Chainlink oracle network and its native token, LINK, had been fairly quiet since its ICO in September 2017 when it raised $32 million, with a total supply of 1 billion LINK tokens. But, what’s so special about Chainlink? In short, Chainlink bridges the gap between smart contracts and real-world applications.

LINK was trading under $1 USD until June 2019 when it started climbing. At the time of this writing, LINK is trading at ~$10.60 with a market cap of $3,714,130,087 USD. In this article, we’ll cover Chainlink’s recent movements, what’s causing it, and where the coin might go in the future.

One of 2020’s Best Performers

LINK was trading at ~$1.80 going into 2020 and it’s been one of the best performing altcoins of the year. By early March, LINK was trading in the $4 range until it crashed back down under $2 on Black Thursday.

That didn’t stop the coin from climbing back to its pre-crash levels. It was in July when its price took a meteoric rise. On July 5, LINK was approaching the $5 threshold. By July 16, it was at ~8.60. Many cryptocurrencies crashed at the end of July, and Chainlink dropped from $8.75 to $6.90. But the altcoin immediately bounced back and tested the $8.75 resistance.

In early August, LINK was outperforming Bitcoin; gaining 88% between August 1-10. In an unprecedented achievement, 100% of LINK supply was profitable, or “in the money” as of August 5. For context, ~90% of BTC and just ~47% of Litecoin (LTC) were in the money.

LINK reached an all-time high of $19.85 on August 16 but couldn’t sustain such growth and has been on a general downward trend since then.

Last week, Coin Telegraph noted that LINK could rebound if it crosses the $8.908 resistance level. Well, that happened. On September 25, LINK rebounded 30% within 24 hours after an apparent developer selloff. The price was nearing the $10 mark. Admittedly, the price may not rise exponentially as it has but could indicate that the downtrend is over.

Chainlink Price Analysis: Cashing in on the DeFi Craze

We can’t explain Chainlink’s performance without talking about Decentralized Finance (DeFi). DeFi refers to financial offerings operating on a blockchain network. It is transparent, interoperable, permissionless, and open to anyone. DeFi promises to address the flaws in our current financial system, namely, centralization.

DeFi is getting popular these days, and Chainlink is in a great position to capitalize on the hype. That’s because Chainlink is an oracle network. In short, blockchains cannot access data outside their network, so they use oracles to provide external data that trigger smart contract executions.

Most DeFi applications (Dapps) need some sort of price data feed for security reasons, and oracles are the solution. Chainlink, the biggest player in the oracle space, stands to gain the most from the growing DeFi interest.

Chainlink has also been announcing strategic partnerships all throughout 2020. The amount of partnerships tops 100, with 19 announcements in September alone. These announcements generally focus on Chainlink’s integration into a given network; providing that crucial price feed data.

Sergey Nazarov, founder of Chainlink

Chainlink also announced a new grant program focused on smart contract adoption. The most recent announcement was on September 28, with Alchemy Pay integrating Chainlink’s price feeds. Here is a more detailed list of partnerships.

These developments should give you an indication of the DeFi craze. Indeed, many of these companies, including Crypto.com, are using their Chainlink integration as a way to break into DeFi. As of early September, there is approximately ~$8 billion of total value locked in DeFi projects, a four-fold increase since June, and it’s only just beginning.

DeFi Fueling Future Price Action

It’s hard not to be optimistic about LINK’s future. After all, the altcoin had a 500+% ROI in 2019 compared to Bitcoin’s 100%. The DeFi market is also one of the primary factors spurring demand for oracles.

Walletinvestor.com predicts that LINK would reach $10.33 in 2020 and $20.95 in 2025. Crypto-rating.com is more bullish, with a prediction of $19.82 in 2021, $37.22 in 2022, $73.99 in 2023, $147.72 in 2024, and $295.08 in 2025.

Digitalcoinprice.com is more conservative in its estimates – $14.36 in 2020, $20.49 in 2021, $25.56 in 2022, $30.60 in 2023, a peak of $34.30 in 2024 with a drop to $26.12 in 2025.

In early August, investment analyst Timothy Peterson said LINK could be valued at $32 by the end of 2020. His comments came days after LINK rallied 88% during a two week period.

If that were to happen, it would push Chainlink’s market capitalization over $10 billion. There is doubt whether Chainlink has strong enough fundamentals to sustain those numbers. Still, market sentiment is favourable.

The crypto market is notoriously volatile, so some predictions may change slightly. But Chainlink clearly has had major accomplishments in the past two years. They had an excellent performance in 2019 and 2020, they are a crucial part of the burgeoning DeFi landscape, and they have announced a myriad of partnerships, planting the seeds for a lucrative future.

This is the eighth in a series of price analyses that Secure Digital Markets is releasing to keep our readers up-to-date on what’s happening in the markets.

Sign up for the Broker's Beat, our weekly email about digital asset trends shaping markets, industries and the global economy.

Do NOT follow this link or you will be banned from the site!