The price of Chainlink (LINK) continues to rise.
The token debuted on the crypto markets in September 2017, before the last big speculative bubble occurred, at that time its value was around $0.2.
During the bubble, it peaked at over $1.4 at the beginning of January 2018, before falling back to $0.2 at the end of 2018. Since then, it has done nothing but rise steadily over the long term.
Already at the end of June 2019, it reached a new peak at $4.3, before falling back and rising to a new record of almost $4.9 in early March 2020. During the collapse of the financial markets in mid-March, it collapsed to just over $1.5, but recovered quickly, as it was already back above $3 in early April.
However, the price continued to rise, exceeding $5 at the beginning of July 2020, and the new record high today was over $8.1.
In other words, since its debut in the crypto markets, LINK has increased its value by almost 4,000% in less than three years. In 2020 alone, it grew by 350%, in just over six months, making it one of the most profitable tokens in 2020.
Among other things, as Santiment reveals, in the last six days the daily active addresses for this token have skyrocketed from about 1,500 at the beginning of the year, to about 4,000 at the end of June, to the current over-9,000 on July 8th.
The graph also shows a hypothetical correlation between the price of the token and the number of daily active addresses, given that since the beginning of the year the two metrics have moved in parallel on several days.
Indeed, according to analyst Timothy Peterson, the percentage variation of the price of LINK is twice as much as the variation in the growth of users, so much so that if it were possible to accurately predict the growth of users, one could reasonably predict the growth of the price as well.
The reason it doubles is @BobMetcalfe's law. n^2 -> 2 * log (n). % change in price is 2 x % change in user growth. if you can accurately forecast user growth, you can reasonably forecast price. link: https://t.co/40qNnlVuZS
— Timothy Peterson, CFA CAIA (@nsquaredcrypto) January 17, 2019
Now the price is back below $8, but the Chainlink token remains in the top 10 of the main cryptocurrencies by market capitalization, ahead of crypto assets with a long history behind them, such as EOS, Stellar Lumens, Monero and Tron.
The fact is that Chainlink is to all intents and purposes a widely used service in the crypto sector, seeing that many operators and companies in the sector use its decentralized oracles.
LINK is an ERC20 token on the Ethereum blockchain, and is used to pay node operators to guarantee data reliability. Therefore, it can be expected that a significant part of the growth in its value is due to its actual use, and not to pure speculation.
Obviously there is also speculation, but a significant part of the growth in its price could be due to its actual use, although this is probably not the only cause of its recent surge.
