Last Update: July 21st, 2021

ChainLink is the first platform of its kind and it can be described as a decentralized oracle service. It is a blockchain designed to link the blockchain technology-based smart contracts with other user programs and APIs. The circulating supply of ChainLink is 390 million coins with 1 Million coins as a maximum supply limit.

In the crypto market, ChainLink (LINK) has become a popular currency as it now falls under the top 5 cryptocurrencies in terms of volume. According to market capitalization, ChainLink is the most valuable DeFi token. The rise in popularity of ChainLink is derived from the increased interest of crypto traders and investors, since the start of the coronavirus pandemic. ChainLink has gained a lot of attention since then, becoming the fifth most important currency on the basis
of market capitalization. The reason behind its rise in demand is linked to the fact that blockchains cannot have access to outside data from their path, and in order to facilitate data feeds in the smart contract, a DeFi instrument like ChainLink is needed. So, in short, ChainLink provides a communication service between smart contracts and off-chain systems and APIs.

Factors affecting ChainLink (LINK) prices:

Decentralized Finance (DeFi):
The Decentralized Finance (DeFi) protocols have a significant influence over other cryptocurrencies. The continuous growth in the DeFi sector has increased the need for reliable and decentralized oracles that can provide outside information on the smart contracts. The DeFi tokens, such as Synthetix, have grown extensively recently, as they are dependent on oracles for their data, and ChainLink is used for this purpose. So the increased demand for DeFi tokens has pushed the LINK prices higher.

ChainLink Partnerships:
Recently the massive rally in the ChainLink prices was caused by the interest in it, mainly from China. Binance, the world’s largest bitcoin and cryptocurrency exchange by volume, started working with the developers of ChainLink, using their DeFi products.

In mid-July, the prices of ChainLink (LINK) surged after a dual-chain architecture from the major crypto exchange, Binance integrated ChainLink data orders. The integration expanded the limit of its smart contract of Binance to areas like DeFi, payments and asset management.

Moreover, ChainLink has established a number of important collaborations over the years, including the most important one, with tech giant Google, in June 2019. The partnership between ChainLink and Google enabled Google Cloud users to use ChainLink to connect Bigquery. This news had a big impact on the ChainLink (LINK) price, as LINK has seen a serious surge in prices since then.

Some of ChainLink’s other important partnerships include Intel, since October 2019, and Deutsche Telekom, National Blockchain Services Network and Oracle, since June 2019.