Chainlink (LINK) Price Could Surge Over Support for Dynamic NFTs, Analyst Explains

Popular cryptocurrency analyst Tyler Swope has revealed he believes the price of Chainlink (LINK) will surge in the near future as the project enters the non-fungible token (NFT) market with the release of so-called dynamic NFTs.

In a new video, Swope highlighted a Chainlink blog post from June of last year on the project’s strategies to mint dynamic NFTs using Chainlink. The blog post defines dynamic NFTs as:

Perpetual smart contracts that use oracles to communicate with and react to external data and systems. The oracle allows the NFT to use external data/systems as a mechanism for minting/burning NFTs, trading peer-to-peer, and checking state.

Currently, NFTs use the ERC-721 and ERC-1155 token standards and were described as “static” by Swope, who pointed out that while it’s possible for anything to live on a blockchain with them, they do not react to real-world data.

Dynamic NFTs would, as Daily Hodl reports, using Chainlink’s oracles, change according to real-world data. On top of that, Swope pointed out that the project’s Verifiable Randomness Generator (VRF) has been live since October 2020 and “gives dynamic abilities to NFTs through randomness.”

Some NFT projects, including Ether Cats, are reportedly already using Chainlink’s VRF on their platforms. The protocol is set to add value to NFTs by attaching real-world events to non-fungible tokens.

Per his words, this means an NFT player card could be continuously updated with a player’s statistics, and the data could then be used “to decide the winners of tournaments and trigger winning payouts.”

Chainlink’s blog post also mentions authenticity and identity verification systems. Using digital identity verification systems users could reportedly use existing applications while keeping control of their private data. Swope added:

Chainlink allows smart contracts to query identity-based blockchains to verify personal credentials as well as to append data to a person’s identity based on an output from another business process.

All of this, according to the analyst, could see demand for Chainlink’s LINK token rise, triggering a price surge. LINK is, at press time, trading at $27 after falling 6% in the last 24-hour period.

Featured image via Pixabay.

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