Chainlink, the undervalued infrastructure that connects blockchain with reality

There is a noticeable disconnect between the technical and strategic importance of Chainlink and its valuation in today’s market. According to Matt Hougan, chief investment officer at Bitwise, this asset represents one of the most undervalued pieces of crypto infrastructure, despite its critical role in the connectivity of modern blockchain ecosystems.

Chainlink (LINK), currently the eleventh largest crypto asset with a market capitalization of approximately $7.88 billion, is part of Bitwise’s highest-conviction investments. However, it rarely dominates conversations in the mainstream crypto space, not because of weaknesses in its fundamentals, but because its technical complexity remains poorly understood by most investors.

Why does Chainlink remain undervalued despite its relevance?

Conceptual confusion is the main factor behind this undervaluation. Chainlink is frequently described as a “data oracle” that supplies blockchains with real-world information, such as asset prices or event outcomes. However, Hougan argues that this description is as inaccurate as calling Amazon a bookstore.

Founded in 2017 by Sergey Nazarov and Steve Ellis, Chainlink operates as a decentralized network that allows smart contracts to securely access external data. From asset prices to verifiable events, this infrastructure has evolved to become the essential connective tissue that transforms blockchains from siloed systems to platforms interconnected with markets, institutions, and each other.

Without the connectivity that Chainlink provides, blockchains would function as powerful disconnected spreadsheets: capable of executing complex calculations, but unable to access the information needed to operate on real financial systems.

The connective tissue that sustains institutional adoption

Chainlink’s relevance is magnified when analyzed from an institutional perspective. Stablecoins rely on their oracles for price feeds and proof of reserves. Tokenized assets—stocks, bonds, and other digitized financial instruments—require your infrastructure for valuation, regulatory compliance, and settlement logic.

Decentralized finance applications, prediction markets, and on-chain derivatives cannot operate without reliable and verifiable external data. As a result, Chainlink has strategically positioned itself in both crypto-native financial institutions and traditional organizations.

The institutional reach it has achieved is striking: SWIFT, DTCC, JPMorgan, Visa, Mastercard, Fidelity, Franklin Templeton, Euroclear, and Deutsche Börse are just a few examples of entities that have adopted its infrastructure. This quiet integration into the global financial ecosystem contradicts the narrative that Chainlink remains a peripheral asset.

Strategic positioning in tokenization and decentralized finance

For investors optimistic about stablecoin expansion, massive tokenization of assets, sustained growth of DeFi, or the actual adoption of blockchain technology in financial processes, Chainlink occupies a central position. Its dominance in multiple infrastructure markets with near-monopolistic market share positions the protocol to benefit disproportionately from any acceleration in these trends.

As financial institutions move towards tokenization and cross-chain interoperability becomes a fundamental requirement, the demand for trusted and decentralized oracles will multiply, amplifying the relevance of the infrastructure that Chainlink provides.

Investment outlook on a fundamental piece of Web3

Bitwise recently launched an exchange-traded product (ETP) from Chainlink, reflecting its confidence in the potential of this infrastructure. LINK’s price stood at $11.13 as of January 29, 2026, after experiencing volatility in the short term.

The current market assessment for Chainlink suggests that investors systematically underestimate its role in the backbone of crypto infrastructure. In a landscape where tokenization, institutional adoption, and blockchain interoperability are accelerating, an undervalued asset that serves as a critical connector between traditional systems and blockchain represents a high-conviction opportunity. Those who understand the true nature of Chainlink — not as a simple data provider, but as foundational infrastructure — may be identifying one of the biggest valuation biases in the crypto market today.