Chainlink, the true undervalued gem of crypto infrastructure

While the market remains focused on speculative price movements, there is one critical infrastructure asset that remains notably undervalued according to recent analysis by Bitwise, one of the most respected crypto asset managers in the industry. Chainlink (LINK) operates as the invisible backbone that connects blockchains with real-world data, traditional financial systems, and global institutions, a function that widely transcends popular market understanding.

The eleventh crypto asset by market capitalization, worth $7.82 billion, has managed to position itself at the center of modern crypto infrastructure. However, its fundamental importance rarely figures in mainstream investment conversations, a gap in understanding that Bitwise attributes not to fundamental shortcomings, but to the complexity of its value proposition.

Why investors have undervalued Chainlink

Matt Hougan, chief investment officer at Bitwise, argues that Chainlink represents one of the least understood and potentially most undervalued crypto assets on the market today. The conventional description of the project as a “data oracle” is as incomplete as calling Amazon a bookstore. This superficial characterization does not reflect the true magnitude of what Chainlink provides to the ecosystem.

Founded in 2017 by Sergey Nazarov and Steve Ellis, the protocol was designed with a specific purpose: to serve as a decentralized network that would allow smart contracts to securely access verified external information. By eliminating reliance on centralized intermediaries for critical data, Chainlink became an essential integration bridge between siloed digital worlds and real-world operational financial systems.

The technical complexity of the project has created a gap between its functional importance and its recognition in the mass market. Institutional investors understand this reality, but the general public still views Chainlink through the limited lens of a price provider, missing out on the magnitude of its infrastructural role.

The connectivity layer that sustains the financial future

Without the infrastructure that Chainlink provides, blockchains would function as powerful siloed computing machines: capable of executing complex logic, but unable to interact with the markets, data, and systems they require to have real utility in global finance.

Hougan’s analysis reveals that Chainlink has already quietly integrated into critical multi-vertical operations. Stablecoins rely on Chainlink to maintain reliability in their price feeds and proof-of-reserve. Tokenized assets (stocks, bonds, and securities) require their services for real-time valuation and regulatory compliance. Decentralized finance applications, prediction markets, and on-chain derivatives are technically impossible without access to verified and reliable external data.

The result is that Chainlink has become a quiet but critical dependency for both crypto-native initiatives and traditional financial institutions looking to dabble in digital assets.

Institutional trust as a validator of value

The adoption by world-class organizations underscores the indispensable role Chainlink plays in modern financial infrastructure. Organizations such as SWIFT, DTCC, JPMorgan, Visa, Mastercard, Fidelity, Franklin Templeton, Euroclear, and Deutsche Börse already rely on the network for operations ranging from cross-chain transfers to derivatives settlement.

This list of institutional adopters is not circumstantial: it reflects a consensus among sophisticated financial players on the need for reliable infrastructure for the digital asset ecosystem. For any investor optimistic about stablecoins, tokenization, decentralized finance, or real institutional adoption of cryptocurrencies, Chainlink is positioned as an unavoidable component.

Bitwise recently launched an exchange-traded product (ETP) dedicated to Chainlink, signaling institutional confidence in the asset’s long-term potential.

Current market dynamics and opportunities

As of January 29th, 2026, LINK is trading at $11.04, reflecting a 24-hour drop of 6.81% with a market capitalization of $7.82 billion. This short-term price pressure contrasts sharply with the long-term fundamentals underpinning the protocol.

In parallel, the general market pressure has also affected other assets. XRP fell to $1.82, recording a 5.56% retracement in the same period. These moves reflect a broader correction that has impacted riskier assets, without changing the operational fundamentals of the underlying infrastructure.

For investors with a long-term horizon, current price dynamics may represent an opportunity to accumulate exposure to infrastructure whose fundamental value remains intact and will continue to grow as institutional adoption and tokenization accelerate.

The nexus between infrastructure and lasting value

Bitwise’s core thesis acknowledges that Chainlink remains undervalued in terms of its critical role within the emerging digital economy. It is not a speculative asset susceptible to hype cycles, but a fundamental piece of infrastructure whose importance increases with each new institutional use case.

While the market continues to focus on short-term narratives and volatile price movements, the foundations on which the future of decentralized institutional finance is built remain quietly in place. Chainlink is not a speculative bet; It is the infrastructure on which all bets of the crypto financial future will be built.