Chainlink (LINK) Prepares for Mainnet Launch; Price Action Reflects Uncertainty
The LINK market price has outperformed in the past days, but the mainnet launch may pose a new challenge.
Chainlink (LINK) is just days away from launching its mainnet, promised for the end of May. The next few days will be decisive for the price of LINK, which has outperformed the markets for months, and has seen unusual appreciation on Binance.
Users noticed that a blockchain explorer went live, possibly ahead of the mainnet launch:
But what worried investors is the lack of any communication from the team. A blog post was expected, detailing the process of the mainnet launch. It may be too early for panic, but so far, details have been sparse:
LINK is one of the projects believed to be rising despite the lack of concerted hype, mostly being concentrated on building up the product.
But the market price of LINK is already showing weakness ahead of the mainnet launch, sliding toward $1.21 from this week’s peak at above $1.46. Bleaker forecasts see LINK slide back to the $0.40 range, or as low as $0.30.
In the past three months, LINK appreciated from $0.42, mostly based on anticipation of the mainnet launch and boosted by pumps on Binance. Once momentum hit, the price took off, with expectations that the mainnet launch would bring even higher valuations. But for now, this is more uncertain, making LINK as a rather risky asset to hold.
Chainlink offers to bring a decentralized ecosystem of oracles, and build a blockchain-based connected network of smart contracts. Chainlink aims to build blockchain solutions for multiple industries, including finance, relying on its community for support:
“We currently have over 19,000 people that have told us they’d like to be ChainLink Node Operators; even if there is a small conversion rate from this large initial group, we expect that we’ll be able to have a sufficiently large amount of independent node operators to provide a fully decentralized oracle network,” wrote Sergey Nazarov, the project's founder, in a recent posting.
For now, LINK is again at a crossroads, with trading volumes sliding below $50 million in 24 hours, down from above $100 million during peak price climbs.
It remains to be seen how the asset performs in the coming days and how it reacts to the actual mainnet launch.
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