Chainlink struggles to rally despite important ecosystem updates
Chainlink (LINK) has often marketed itself as the platform that will ultimately democratize the blockchain. The coin has had better days no doubt. But in 2022, the price has remained suppressed for the most part. This comes even as LINK continues to report impressive ecosystem updates. Here are some notable developments:
Chainlink adoption continues to surge in 2022, with more integrations expected this year.
Cross-chain activity has also increased for LINK in recent weeks.
Despite this, LINK’s price has failed to rally more than 10% month on month in 2022.
Data Source: TradingView
Why are ecosystem updates not pushing LINK?
In a normal market, you would expect such important ecosystem news to have a huge impact on the price. In fact, announcing more integrations would have at least given LINK a boost of 20% in a single month. But this is not a normal market.
In 2022, we have seen very high volatility and slowed investor sentiment. As such, even though underlying fundamentals for LINK remain solidly good, the risk-off sentiment means that investors are just biding their time before they decide to buy. Also, there are other concerns regarding LINK.
For example, the project is facing massive competition from other newer entrants. Chains like Solana and Polkadot are raising the bar when it comes to scalability and access. As such, it seems investors are starting to spread out their money as they try to cash in on every new project. This puts LINK at a disadvantage.
Can LINK still deliver good returns?
It’s worth noting that LINK hit an all-time high of $57 a few months ago. The coin is now trading at a mere fraction of that.
Although we do not anticipate LINK hitting its ATH this year or even getting close, there is still some potential for a decisive profit for those who buy now. In fact, it is possible that you could 3x your money by year’s end.