Weiss Ratings predicts the price of the relative crypto newcomer Chainlink (LINK) will soar about five times its current value due to a coming wave of adoption.
Chainlink is designed to help traditional enterprises easily integrate their data on the blockchain. According to Weiss Ratings, this business model is setting the platform up for a surge in demand.
“…smart contracts are creatures of the blockchain with no inherent connection to the outside world. So, they have no way of knowing what market interest or exchange rates are, what various assets used as collateral are worth, or even what day it is. All this critical data has to come from external sources.”
Led by chief executive officer Sergey Nazarov and chief technology officer Steve Ellis, Chainlink was developed so that smart contracts can seamlessly and securely connect to external data feeds and real-world events, including payment rails, to facilitate complex digital agreements.
With transactions payable in Chainlink’s native cryptocurrency, currently the 14th largest crypto by market cap, LINK’s value will surge along with a growing demand for smart contracts, according to Weiss analysts Bruce Ng and Juan Villaverde.
“The near-exponential growth of smart contracts also means near-exponential demand for Chainlink, going forward — and the information it provides.”
Weiss Ratings points to Google’s use of Chainlink and the platform’s current list of partnerships, including Synthetix, Compound, Aave, among 20 others, as a sign of what’s to come.
“Taking all of the forgoing into account, we reckon LINK could trade as high as $20. Which is almost five times what it trades for today. Investors would be smart to keep LINK on their radar.”
Chainlink has already rallied from $1.82 at the start of 2020 to its current price of around $4.45 – a 144% increase.
Whether the crypto asset has more upside potential left after its major moves in 2020 remains to be seen.