Cryptocurrency prices collapsed in November as concerns about contagion in the industry continued. Bitcoin plunged to $15,000 while the total market cap of all cryptocurrencies crashed by over $200 billion to about $830 billion. In this article, I will explain why Chainlink is the best crypto to buy now.
Proof of Reserve solutions
For starters, Chainlink is the biggest oracle providers in the blockchain industry. An oracle makes it easy for developers in the sector to add off-chain data to the on-chain. For example, DeFi builders can easily integrate crypto price feeds in their ecosystems.
The collapse of FTX has led to the popularity of a concept known as a proof-of-reserve. This reserve shows that companies have the assets they claim to have in their ecosystems. Some exchanges like OKX have already launched their proof of reserves while others are expected to do it in the coming months. Stablecoin users are also using proof of reserves following the collapse of Terra and Terra USD.
Chainlink launched its Proof of Reserve product a few months ago. Since then, it has been embraced by leading players like Armanino, Trusttoken, BitGo, and Paxos. More firms will likely use Chainlink’s services to build trust and integrity.
LINK staking
Another reason why Chainlink is the best crypto to buy today is the upcoming launch of Chainlink 2.0 in December. Chainlink is working to become a Decentralized Oracle Network (DON). As part of this transition, Chainlink will introduce staking, which is an important concept in the industry.
Staking makes it possible for people to lock their tokens for a certain period, often a month, and then earn returns from it. These returns usually come from the network fees provided by the network. Chainlink will start a trial of this staking in December ahead of a full rollout in 2023.
Chainlink price prediction
Further, Chainlink is a good crypto to buy because technicals are supportive. On the four-hour chart, the coin has formed an inverted head and shoulders pattern, which is usually a bullish sign. It has also moved above all moving averages while the MACD and the Relative Strength Index (RSI) have continued rising.
Therefore, the coin will likely continue rising as buyers target the key resistance at $10. A drop below the support at $7 will invalidate the bullish view.
