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Home ยป Chainlink Crypto UNDERVALUED? What is Chainlink?

Chainlink Crypto UNDERVALUED? What is Chainlink?

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I’m like look at this drawdown and from the all-time high I mean it went down 88 almost against Bitcoin it is still down 78 against Bitcoin from its all-time high so I mean you haven’t really missed out on anything at this point what I’m looking for with link over the next few months hey welcome back everybody to altcoin daily today we’re talking about a blue chip cryptocurrency which historically has outperformed in Bitcoin bear markets of course we’re talking about chain link a decentralized blockchain Oracle Network built on ethereum the network is intended to be used to facilitate the transfer of tamper-proof data from off-chain sources to on-chain Smart contracts and of course while it is built on ethereum it is blockchain agnostic so it can connect with any of them chainlink has connected with in fact over 1 500 different projects from crypto to startups to large Enterprises that use chain links decentralized oracles to securely connect smart contracts with off-chain data and services and then of course within the chain link project there’s different products different services that chain link offers one supporting decentralized data feeds two providing verifiable sources of Randomness three enabling Automation and for supporting cross blockchain interoperability today my friends we are joined with none other than the Benjamin Cowan into the cryptoverse been talking about chain link since the very beginning and he has a lot of information to share with us today Benjamin Cowan how are you doing today pretty good it’s a pleasure to be back here I always like like coming on here and talking about crypto with you definitely now if you subscribe to my channel Benjamin I know you do and I subscribe to yours you know that chain link besides connecting with ethereum and Solana and Phantom and all that stuff besides you know being the blockchain Oracle service for Gemini for Kraken for binance for coinbase besides that chain link of course has been integrated by Swift that was a big one big one the global provider of secure Financial Services everybody you know the ethereum people wanted it to happen with them the Bitcoin people wanted Bitcoin to basically be uh you know obsolete Swift well Swift is still around it’s still the blue chip in you know Legacy Traditional and it’s amazing that they integrated chain link that’s what excites me about the project including you know the Associated Press Amazon web service it seems like there’s no other game in town but my question for you Ben before we get into the charts is what x excites you most about chain link why have you even talking about it since you know the beginning for me I think chain link sort of acts as a a backbone for a lot of cryptocurrencies I I would argue that it’s sort of integrated itself uh into into so many different projects over the years I mean as you mentioned I don’t know the exact number like you do but uh I’ve we’ve seen over the years how just how many cryptocurrency projects has sort of integrated itself into and I would argue that it provides a a very valuable service and providing like real-time feeds um via the blockchain one of the reasons why I think it hasn’t done as well recently obviously is not necessarily because chain link isn’t a great project it’s more so just because of the overall Market risk and the fact that we are in fact in a bear Market but I do think the fundamentals of link I actually have a whole video on my channel called like what is chain link where I go through it uh but I think the fundamentals of chain link shine through a bit better in the bear market then they sometimes do in the bull market if that if that makes sense definitely I mean there’s you know there’s price and then there’s value and sometimes the two do not correlate and you know you want to look in the bear market for these projects that have a lot of value so let’s jump into the charts Benjamin I want to know is chain link undervalued hit the like button if you appreciate having Benjamin on Benjamin I can see your screen okay so I just want to show you a few charts here uh the first one is just link USD and I would argue that we’re potentially at a very similar phase that we were at sort of in the middle of 2018 uh but one of the things that I always found really interesting with chain link is that and I know you are very familiar with what happened with crypto at the very end of 2018 right we saw the floor collapse right um but what was interesting with link is that it actually did not put in a lower low sort of the load that it put in was actually in the summer of 2018 and that was something that that really got my attention back then I mean I I did hold link I I did hold some in 2018 I think the earliest I bought any um was was it was before I know it was before the final crash in 2018. I remember that for sure but it sort of grabbed my attention that hey this is a this is going to be a good project if at the end of the bear Market the end of the the capitulation that set Bitcoin down 50 and a lot of altcoins down 80 percent link was still able to hold its prior low um and and then ever since then it you know it went through this crazy bull market and and it peaked out in May of 2021 which arguably the entire crypto asset class arguably has been in a bear Market really since mid-2021 and we sort of leveraged our way up to uh up to the November Peak but one of the interesting things is that you know one could make the argument that we’re we’re sort of at a similar phase right now on the link USD chart that we were kind of over here and what you’ll notice is that link actually had a had a bit of a pop you know right before we had another another leg down in the overall crypto Market what I’m looking for with link over the next few months uh because I mean this year I’ve actually been relatively light on my altcoin stack but of course I don’t want to stay light on my altcoin stack forever because I do think that you know cryptocurrency is much more than just Bitcoin I do think it we’re going to have lots of cryptocurrencies in the future um one of the things I’m looking for is how well does link hold up if we do get you know some some more fear closer to the end of the year with the FED continuing to raise interest rates and how does it hold up against Bitcoin because here’s the really interesting thing if you look at the link USD chart and you’ll see that it was sort of just an accumulation phase or say the second half of 2018. if you look at the link Bitcoin chart I’ve had this chart like literally on my link Bitcoin tab for for a long time now you’ll notice that it was already in an uptrend against Bitcoin throughout 2018 and then really built into this uh you know manic bull market that link link Bitcoin actually topped during the D5 summer of 2020 I mean that was a great summer for a lot of D5 projects and you can see that it actually peaked right there but what’s interesting is how since then we’ve just sort of gone through the same bubble pop scenario that we’ve seen time and time again but this one’s on the link Bitcoin pair and noticeably I would argue that this here could be the despair phase right sort of that despair phase that we’ve seen happen in a lot of these crypto assets before in the past but just I I would argue that this is is somewhat similar and what I’m looking look what I’m looking towards is as we as we continue to navigate um you know whether we’re whether we’re whether the bear Market is over or not or whether we have another leg down only time will tell but what happens over the next three to six months can link USD sort of hold around these levels even if crypto has another leg down and if it does is link Bitcoin sort of just getting back onto it it’s mean right like it’s sort of the the average path that it’s been on I think that’s sort of what’s what link USD and Link Bitcoin are in the process of doing link Bitcoin is sort of trying to reclaim the the path that it was once on and I think as we get on this path um and as crypto eventually the crypto winter will fall and as that falls and I think you really could be looking at you know at a relatively undervalued asset um of course in the short term who really knows because I mean if equities get another leg down in the next three to six months I’m sure it’ll have an effect on crypto but I do think these are some really interesting charts to be looking at uh with respect to to Link and Link USD and Link Bitcoin so what I hear you saying is chain link might be undervalued but not necessarily there might be a lower low I think right now I think the uh so I I right but I think about it in terms of like the idiosyncratic risk and the market risk so the idiosyncratic risk is just based on what link is doing and then the market risk is based on like what everything else is doing right like Bitcoin ethereum like what is everything else doing I think link is is looking relatively strong okay so I think it looks strong against Bitcoin I think it’s looking strong against ethereum and I would say you could I think you could make the case that it is undervalued against Bitcoin right now I think you could probably make the case that it is undervalued I mean look at this I mean like look at this drawdown and from the all-time high I mean it went down 88 almost against Bitcoin it is still down 78 against Bitcoin from its all-time high so I mean you haven’t really missed out on anything at this point but I think it’s probably undervalued against Bitcoin if we take a look at the link ether chart you could also argue that it’s going through a similar phase like it did sort of in the middle of 2018 right where it it kind of puts in these lows and then it gets it recovers a little bit but even though link eth was going up during this phase link USD was still struggling a bit right until until the bear Market was actually over but I think to answer your question bluntly I I think it probably is undervalued against Bitcoin and ethereum the only sort of question in the air is is can it go lower against the US dollar and obviously that’s going to be dependent on the overall Market risk and and not really anything related to chain link now a catalyst that not many people are talking about because it’s still kind of in the beginning is that chain link is moving to proof of stake this December they’re offering Early Access if you meet certain requirements that you can start staking your chain link and pretty soon that’ll be open to everybody and you know kind of the thought is that that just like ethereum staking the link will be good for supply and demand and will make it have better tokenomics um any thoughts I mean I think look this is this is I mean them going to prove mistake has been something we’ve been waiting for forever I mean I I it’s hard to imagine it’s still 2022 and it hasn’t happened I said the same thing about ethereum you know for years uh but yeah I I think ultimately it’s a good thing I mean I also think it’s a good thing for ethereum as well uh I I think it it is a good transition for for link to make the whole idea of of locking your tokens up and earning interest uh I do think makes a lot of sense and I think a lot of crypto investors have hopefully learned their lessons from from um two high yields right over the last year in in certain projects so yeah I think it’s a good thing going forward um and I mean I I do think that’s probably one of the reasons why you are starting to see some of the relative strength against Bitcoin and ethereum I mean like you know the the the narrative for for ethereum’s evaluation right at least in the short term has been spent right like the merge okay so now we have to wait a while for a new narrative to pop up but links still are arguably has uh some strong narratives coming up here over the next several months so yeah I do think it’s a good thing and we’ll probably contribute to link staying somewhat strong against the uh the Blue Chip cryptos so I don’t want to put words in your mouth Benjamin but it sounds to me like you’re still bullish on chain like just as bullish as you were back in the day and it served you pretty well are you just as bullish and how bullish are you yeah I mean long term I’m definitely bullish uh I do think I wish it would have performed a bit better at the end of the bear Market uh you know to keep up with some of the other cryptos but that’s just how it is um I am actually I think one of the lessons I learned with chain link about being bullish is that I I’m gonna stay I’ll stay bullish on it once the uh once I’m more convinced the bear Market is over but I also don’t want to let it go too far so like link Bitcoins run was over before Bitcoin ran itself so I have to remember that right like once Bitcoin starts running in the future Link’s probably going to take the uh a back seat for a while but listen 2019 link did really really well after the bear market and if if history repeats every four years or so I mean we’re coming up on 2023 I am I I would say I am bullish on on the link Bitcoin valuation and the link ether valuation with them getting to you know back to what their normal sense is uh again you know I know you want to impress me on the link USD like you know how bullish am I um my main question right now is just recessionary concerns and and and fed Federal Reserve concerns raising interest rates into a into a slowing economy I don’t really know exactly how hard that’s going to hit projects like chain link so again I think against the US dollar it’s probably um 50 50 on on what it does but I think again it’s Bitcoin and Eve you could you could easily make the case that you should be bullish whoa Benjamin so you’re telling me that the inflation currency devaluation the FED tightening the equity indices breaking their June lows the comparisons between the financial 2008 financial crisis the s p closing three red quarters in a row the sovereign debt crisis OPEC cutting oil production Putin Waging War against the westers telling me all that these macro conditions are making you a tad bit you know tepid about the next year yeah just just a little bit you know I mean like like maybe link doesn’t hold up always the best under those conditions uh but we’ll see we’ll see I mean the thing is eventually we will come out of it and um and that’s why I’m drawing the distinction between like link Bitcoin and Link USD and Link Eve because it’s all about like relative performance right like uh it’s all about relative performance and I do think link is probably starting to finally look strong against some of the blue chip counterpoints but yeah I mean against the US dollar man if if the s p goes through a final capitulation or something like we’ve seen in Prior I mean look the last 10 years has been pretty fun for financial markets right like just money printing Galore uh but if if we see something like you know what we saw in 2000 or 2008 uh or even going back even further then yeah I mean we’re we’re likely in some pain for a while on all USD evaluations of of most risk assets I feel it Benjamin thank you so much for jumping on the channel today and updating us on chain link this is why I subscribe to you I encourage our audience to go subscribe to you give us some final Alpha for our audience Benjamin some final Alpha um well the the only thing I I mean a lot of things I talk about on my Channel right now are are how the Bitcoin dominance should go much higher but while I say that there’s always a few altcoins that outperform Bitcoin even when the dominance is going higher and and if history is an indication uh at the end of a bear market and in an accumulation phase before next bull market chain link is is a is a reasonable place to look but again uh one one last thing if you guys are watching from my channel make sure you subscribe to all coin daily as well I mean they’ve been putting out videos for a long time and uh always have a lot of great discussions classy move Benjamin thank you so much man thanks for having me

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