Please ensure Javascript is enabled for purposes of website accessibility

Why Chainlink Is Rallying Today

By Zhiyuan Sun – Aug 16, 2021 at 4:04PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

There's more momentum ahead for this revolutionary token.

What happened

Chainlink (LINK 3.32%) is up 9.13% in the past 24 hours to $29.02 per token as of 2:30 p.m. EDT on heavy volume. The 12th largest cryptocurrency in the world has gained 18% over the last seven days. Its rally is part of continued momentum on new business developments. On Aug. 13, Chainlink Labs launched its namesake data oracles on Arbitrum One -- allowing its developers to access financial market data on behalf of its decentralized exchange clients.

The week before that, Chainlink Labs integrated weather data from Alphabet's Google Cloud for smart contract execution on its blockchain network. 

A digital rendering of a chainlink against a background of zeros and ones.

Image source: Getty Images.

So what 

Chainlink is a major step forward from the concept of programmable money brought forth by the Ethereum Foundation. It allows smart contracts to reference real-world API, such as financial data, weather events, the number of votes candidates received in an election, data from other blockchains, back end programming data, bank payments, etc., in their execution. LINK tokens are used to compensate Chainlink node operators for data retrieval.

Now what

Vitalik Buterin, the founder of Ethereum, has explicitly stated that smart contracts need oracle coins like Chainlink. In addition, Binance, the largest cryptocurrency exchange in the world, is already using Chainlink's infrastructure for its own smart chain. With a limited supply of 1 billion tokens, of which 446 million have been minted, any net new capital inflows would cause the price of each token to go up. Given its hugely innovative design, it is one of the best cryptocurrencies investors should buy now

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Zhiyuan Sun owns shares of Chainlink and Ethereum. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), and Ethereum. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Alphabet (A shares) Stock Quote
Alphabet (A shares)
$97.46 (-1.02%) $-1.00
Alphabet (C shares) Stock Quote
Alphabet (C shares)
$97.60 (-1.24%) $-1.22
Ethereum Stock Quote
$1,218.18 (-0.12%) $-1.50
ChainLink Stock Quote
$7.10 (3.32%) $0.23

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.