Bitwise Chief Investment Officer Matt Hougan has described Chainlink (LINK) as a profoundly undervalued cornerstone of the cryptocurrency ecosystem, arguing that markets are mispricing the token as a speculative asset rather than essential infrastructure for global finance.
What Happened: Oracle Network Called Undervalued
Hougan's assessment focuses on Chainlink's function as a decentralized oracle network that delivers real-world data to blockchains.
Without this technology, financial applications on distributed ledgers cannot access external information like asset prices or payment confirmations.
The executive emphasized that major financial institutions already depend on Chainlink's services.
The stablecoin sector relies on its price feeds for maintaining pegs and conducting Proof of Reserves audits.
Tokenized real-world assets—including stocks, bonds and commodities—require the oracle network for regulatory compliance and accurate settlement.
The breadth of institutional adoption supports the undervaluation thesis. SWIFT, DTCC, JPMorgan, Visa, Mastercard and Fidelity have all integrated or experimented with Chainlink's technology for cross-chain interoperability and blockchain-based settlement.
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Why It Matters: Infrastructure Meets Wall Street
Hougan's analysis suggests that demand for oracle services will grow exponentially as real-world asset tokenization expands and decentralized finance markets continue developing.
The network maintains dominant market share, often cited above 50% of total value secured by oracles.
The LINK token functions as both payment for data services and collateral that node operators must stake against accurate performance. This economic model ties security directly to network demand.
The convergence of institutional adoption and DeFi growth positions Chainlink's infrastructure as increasingly critical to both blockchain and traditional finance systems.
Bitwise Asset Management's spot Chainlink ETF began trading on NYSE Arca under ticker CLNK, coinciding with Senate Banking Committee draft legislation that grants LINK the same commodity classification as Bitcoin.
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