LINK is the native cryptocurrency of Chainlink, and acts as an "oracle," bringing real-world data from online sources into a blockchain.
Recently, LINK experienced a significant price rally, outperforming most digital assets in September 2023 and reclaiming its reputation as a profitable asset in the market. Several factors have contributed to its leading position in the cryptocurrency market.
In this article, you’ll gain a better perspective of all things LINK.
1. 🔗 It’s the missing LINK between blockchain and the real world
Chainlink’s purpose is to connect real world data with smart contracts on the blockchain. To achieve this, Chainlink built a system where data outside the chain can be linked to data inside the chain. It’s like acting as a bridge for the real-world data systems to reach the blockchain, a separate universe. Thus, the name “LINK” is derived, which acts as the native currency for Chainlink to operate.
2. ⛽ LINK fuels trust in smart contracts
Connecting off-chain and on-chain data is critical to the performance of smart contracts. In case you didn’t know yet, smart contracts are automated blockchain agreements governed by code. They could one day become the backbone of the global financial system. However, the issue is that access to data is limited to the blockchain.
Consider this scenario: your smart contract stipulates “Pay $100 if it rains.” However, it cannot execute the payment if it doesn't have external data on weather updates. Chainlink’s solution is designed to let smart contracts know that it has rained by linking this blockchain-based application with real-world data through its network of data providers.
3. 🐫 It has a double purpose
LINK can facilitate the linking of off-chain and on-chain data in two ways. First, Chainlink compensates data providers with LINK tokens, ensuring they provide truthful and reliable data on the blockchain. Second, users pay through LINK to access Chainlink’s data-providing services. Primarily, LINK is the fuel that allows Chainlink’s data network to run smoothly.
4. ⚓ Prices are relatively stable
LINK has grown since its first launch in 2017. It had a starting price of $0.11 and at the time of writing it’s around $14. In 2023, it ranked 19th among cryptocurrencies with the largest market capitalization. After undergoing significant price volatility in 2022, LINK has achieved a relatively stable performance in 2023. However, it’s still subject to fluctuations like other cryptocurrencies.
5. 🤝 LINK has notable blockchain partners
Chainlink’s partnerships with other blockchain projects mark LINK as a stronghold in the cryptocurrency space. For instance, a partnership with Google Cloud ensures easy operations for developers in building smart contracts on Google’s BigQuery. Chainlink has also partnered with Swift, Polygon, and Ethereum to strengthen its prominent position.
6. 🚲 It’s in a virtuous cycle of adoption
Just a year ago, Chainlink released a Staking Roadmap, one of numerous initiatives known collectively as “Chainlink Economics 2.0” which aim to enhance the long-term utility and sustainability of its oracle services. LINK's purpose doesn't stop at being a token for data-related tasks in the blockchain. It extends its innovation in ensuring the security and sustainability of the network's data-providing operations.
7. 📈 Your LINK can work harder for you
In October 2023, Yield App opened up its doors for LINK holders. Earn a passive income of up to 2% annually on your LINK holdings, swap LINK for other assets (up to $10,000 daily), and watch your portfolio thrive in the world of Web3.
8. 💰 It’s easy to earn with Yield App
Yield App enables you to earn interest and accumulate passive wealth by depositing LINK. With LINK’s recent price rally leading to a profitable position, Yield App offers opportunities for users to deposit their LINK tokens and earn attractive yields over time. Simply transfer your LINK tokens to Yield App, pick an Earn product, and you're all set for daily passive income in the dynamic Web3 landscape.
Supercharge your earnings with LINK on Yield App today!
DISCLAIMER: The content of this article does not constitute financial advice and is for informational purposes only. The price of digital assets can go down as well as up, and you may lose all of your capital. Investors should consult a professional advisor before making any investment decisions.