A venture capitalist believes that Link could soar above $25 and overtake the current market cap of Ethereum (Ether).
Michael Anderson, co-founder of Framework Venture and an early Chainlink (Link) investor, in a Cointelgraph interview, shared his optimism for the project that seeks to decentralize data. He believes that within a relatively short period of time, Link could soar above $25:
“Anything over twenty five dollars I think is not unreasonable to assume”.
Adding that he perceives Chainlink’s service as an “insurance policy”:
“I would put it on par with about the size of Ethereum [today]. And I don’t think that that’s an unreasonable approximation because the way I see it, Chainlink is the insurance policy, the security model for providing robust, reliable data feeds for your decentralized bar contract.”
Recently, the vulnerability of the bZx DeFi protocol has demonstrated the importance of having access to resilient data feeds. Another sign of potential growth is that Coinbase has decided to join the DeFi space. That being said, Anderson does not believe that Coinbase poses a viable threat to Chainlink:
“I don’t see there being much competition. I think the blockchain space requires you to have a couple of things and do them really well. One of them is community development. They have proven that they’re able to build the best and the strongest community. The next is being able to partner with major institutions across all industries and obviously they’ve been able to do that. And then the third that they’ve really shown thought leadership in just developing this industry.”
Link has done extremely well since the Black Thursday downturn. In total, it has appreciated more than 100%. However, it is still below its all-time high of $4.72, reached on March 5.
This story was edited on April 30 2020 to fix an error with a speculative timeframe.