What is ChainLink (LINK) and why has it been rising?

26 May, 2019 | Updated: 26 May, 2019
by Will Heasman
What is ChainLink (LINK) and why has it been rising?

Recently there have been several cryptocurrencies which have set out to defy the overwhelming correlation with Bitcoin, determined to carve their own path. ChainLink is one such project, almost single-handedly proving that altseason is well underway; but what is ChainLink? And why has it been rising?

Over the past month, ChainLink (LINK) has increased a massive 200% putting Bitcoins so-called parabola to shame on a continued run which has outperformed nearly ever cryptocurrency in the top 100.

LINK/USD Chart provided by Tradingview

What is ChainLink?

ChainLink was introduced back in 2017, after a San Fransisco based fintech company called SmartContract – who specialized in (you guessed it) smart contracts – decided to enhance the Ethereum network and its revolutionary ability to create digital agreements.

ChainLink aims to proliferate smart contracts by acting as a middleware between off chain resources and data which would otherwise be excluded by platforms such as Ethereum. As such ChainLink also provides inoperability for smart contracts between different blockchain’s (hence the name - ChainLink).


Why has Chainlink been rising?

It seems as if Chainlink’s rise was catalyzed by the unfortunate actions of an inexperienced trader, who mistakenly placed a market order at $9,999 for one LINK, sending the token skyrocketing to around $10k.

Incredibly due to the upward price trajectory, one lucky trader managed to fulfill his sell order of 40 Link, netting a total of $399,960.

LINK/PAX Standard Chart provided by Tradingview

However, following the mishap, LINK returned to normality with an added +16% on the day.

This appeared to propel the token to continued gains as the market couldn’t get enough of this plucky coin.

Shortly after this, with a fair bit of good timing the project team announced that the ChainLink would launch its mainnet on Ethereum at the end of May, with CEO Sergey Nazarov sharing the news at Consensus 2019:

"We have been able to successfully complete three security audits, without any really critical issues remaining. So fundamentally, from a security point of view, we feel we are in a position that we can go live on the Ethereum mainnet," said Nazarov

After the announcement LINK managed to net a 26% increase, with the project jumping to #30 on Coinmarketcap.

So there we have it, another top 100 cryptocurrencies outperforming Bitcoin; Which altcoin do you think we’ll see performing next? Let us know your thoughts in the comments!

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