For quite some time now, Bitcoin has had a good run in the market with its price rising to highs of $13,000 before hitting a slight correction a few days ago. However, the woes are not over as the price continues to take a dip in the last few days, and the coin currently struggles at the $9,500 mark. Other currencies such as Ethereum and Bitcoin cash have also shown a drop over the past 24 hours.
Bitcoin’s performance has hurt most altcoins but that has not been the case with Chainlink. It has risen to rank at position 16 in terms of market cap according to Coinmarketcap. Over the past two months, LINK has seen its price rise from around $0.4837 on May 3rd to its current price of $3.64, which represent an ROI of about 2,223%. According to some experts, if Link manages to surge past the $4.00 mark, its price would rise past that to highs of $4.5.
So why is the coin defying the odds?
Reason number one, Chainlink was currently listed by Coinbase. The exchange platform which is based in San Francisco has curved out an effect in the market known as the “Coinbase effect” where any new coin that gets listed by it experiences a significant boost in terms of price. With Chainlink the outcome was no different has it hiked to a high of $4.78 hours after it was listed on Coinbase but later dropped to around $2.58.
The second reason is Google’s recent announcement to work with the altcoin. The announcement came at a perfect time when LINK was already enjoying a price surge. Google will use Chainlink as an intermediary middleware between its data and native smart contracts.
The third reason is its partnership with Oracle. Recently, Chainlink partnered with Oracle to enable small startups to sell their data to customers within the Oracle network. The Oracle network has over 430,000 customers found in 175 countries, which provides a good market for the LINK token to thrive.
With such partnerships from huge players in the economy, the coin is expected to experience massive adoption over the next few months. The effect will be that Chainlink price will gain more stability and increase significantly, which is a good thing for investors.
Despite all the buzz around the altcoin currently, history warns us to be a little bit more careful with the coin’s craze. History shows that the value of several altcoins depreciates a few months after their mainnet launch. Considering that Chainlink held its mainnet launch on the 14th of May 2019, investors should brace themselves up for any outcome.