ChainLink’s (LINK) raging bull market may have more upside potential, according to one alternative investment analyst.
Timothy Peterson, a chartered financial analysts, says LINK, which is now the sixth-largest cryptocurrency after posting gains of over 500% in a year, appears ready to continue its parabolic rally and move higher by the end of 2020.
“Did some quick analysis of Chainlink‘s network growth rate and historical deviations in price put LINK at $32 by end of year.”
At that price, however, Peterson stresses that LINK would have difficulty sustaining its bullish momentum.
“Investors who buy at high levels risk losing 50% of their investment or more. Most growth priced in already.”
ChainLink is a decentralized oracle network that connects real-world data such as interest rates and exchange rates to smart contracts on the blockchain. The boom in the decentralized finance (DeFi) over the last few months has helped fuel the growth of parallel projects like ChainLink.
Michael Anderson, the co-founder of Framework Ventures, tells Forbes that the importance of oracle networks has become more apparent now that billions of dollars are locked up in DeFi products that rely on smart contracts.
“We believe the value of LINK will track the value of the smart contract platform it is securing, meaning the long term market cap of LINK will eventually be larger than Ethereum’s current market cap today.”
DeFi Pulse shows that from early June, the total value locked in DeFi protocols grew from a little over $1 billion to almost $5 billion.
