Chainlink price has been on an upward trajectory throughout the month of September, rising by as much as 39% and making higher highs. Investors are closely watching this gem as they believe it could one day be bigger than even Bitcoin (BTC) and Ethereum (ETH). But how exactly will this happen?
Reasons Chainlink Price Could Surpass BTC and ETH
Bitcoin and Ethereum are the world’s largest cryptocurrencies in terms of market cap and popularity. The BTC price has a market cap of $1.26 trillion, while the ETH price follows it with $318 billion. On the other hand, the LINK price is sitting at a $7.6 billion market cap in the 18th rank, according to CoinGecko data.
However, this decentralized finance (DeFi) project is not to be underestimated, as it possesses the power to rise to the top, potentially displacing BTC and ETH. Here are a few reasons this feat could be possible in 3 years.
1. Increasing Partnerships and Adoptions
Chainlink has been forming significant partnerships with major companies and projects, including government agencies like the Depository Trust and Clearing Corporation (DTCC). Moreover, the collaboration with DTCC has allowed Chainlink to work with top U.S. financial institutions such as $1.5 trillion AuM Franklin Templeton and $1.7 trillion AuM Invesco, among others.
Additionally, its collaboration with SWIFT aims to integrate traditional finance with blockchain technology, which could drive substantial adoption, usage, and, eventually, Chainlink price.
2. Dominance in Oracle Technology
Chainlink is the leading decentralized oracle network, crucial for bridging smart contracts with real-world data. Banks that move over quadrillions of dollars need to be able to pick the most secured and widely adopted standard. They are testing with Chainlink now, and once they’re ready, trillions of dollars will be piling into this new age of the internet, flowing through CCIP and other services provided by Chainlink.
In its latest adoption, Chainlink has secured a partnership with ANZ, a leading bank in Australia with over $1 trillion AuM. In the partnership, Chainlink’s Cross-Chain Interoperability Protocol (CCIP) will help enable the secure cross-chain exchange of tokenized real-world assets (RWA).
.@ChainlinkLabs is officially partnering with ANZ—a leading Australian bank with over A$1 trillion in AUM—in the Monetary Authority of Singapore’s Project Guardian.#Chainlink CCIP will help enable the secure cross-chain exchange of tokenized RWAs. https://t.co/nlXJPJKjDv
— Chainlink (@chainlink) September 30, 2024
Major banks and corporations choose Chainlink CCIP for its security, reliability, and flexibility to connect private blockchains with other private chains OR even public chains. This dominance creates demand for the LINK token, which will reflect in Chainlink price increments in the future. This partnership is part of the Project Guardian program, facilitated by the Monetary Authority of Singapore.
3. Chainlink Staking
While it seems obvious, staking has proven to be one of the most efficient price movers in the crypto space. For instance, Solana has a circulating supply of 468.4 million coins, and 99% of the supply is staked, making the coin scarce as meme coins on the chain increase its demand. This partly contributed to SOL price surging 680% in the last year from sub-$20 prices to over $150 today.
A total of 626.8 million LINK is in circulation, with investors staking 6.87% of this.
As more LINK is staked and demand from institutions and retail skyrockets, Chainlink price is expected to surge and potentially surpass BTC and ETH in the coming years.
Conclusion
Chainlink price looks set to make significant strides in the blockchain and decentralized finance sectors, with its dominance in Oracle technology, increasing adoption by major institutions, and the potential of staking to drive demand for LINK. As partnerships with organizations like SWIFT and ANZ deepen and the need for secure, reliable data integration grows, Chainlink could see substantial value growth. While surpassing Bitcoin and Ethereum may seem ambitious, the unique value Chainlink brings to the crypto ecosystem suggests it could be a top contender in the coming years.
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