Matt Hougan, Chief Investment Officer at crypto asset manager Bitwise, has made a bold case for Chainlink (LINK), labeling it one of the "least understood, most important, and possibly most undervalued" crypto assets. This assessment follows the quiet launch of Bitwise's new Chainlink Exchange-Traded Product (ETP).
Hougan noted that the Chainlink ETP debuted with modest trading volumes and tight spreads, a reception that paled in comparison to the strong inflows seen by Bitcoin ETPs. He attributed this muted response to investors failing to fully grasp LINK's fundamental role in the crypto ecosystem. He argued that reducing Chainlink to a simple "data oracle" narrative understates its function and creates confusion.
Instead, Hougan framed Chainlink as a high-growth software platform solving a "core problem" for blockchains: their isolation from each other and the real world. He detailed that the network provides critical infrastructure services including price feeds, cross-chain interoperability, proof-of-reserves mechanisms, process automation, and compliance tools. These services are foundational for several key sectors: stablecoins rely on them for pricing and cross-chain movement; tokenization initiatives use them for asset servicing and compliance; and decentralized finance (DeFi) applications and prediction markets depend on them to function.
The Bitwise CIO emphasized Chainlink's dominant market position, stating its share ranges from roughly 50% to nearly 100% across these infrastructure verticals. He also highlighted extensive institutional adoption, naming major players like DTCC, SWIFT, JPMorgan, BNP Paribas, Visa, Mastercard, Euroclear, Fidelity, Franklin Templeton, FTSE Russell, Coinbase, Aave, Deutsche Börse, and Polymarket as users of Chainlink's technology.
Hougan expects institutional demand for Chainlink-linked products like Bitwise's ETP to grow as more financial assets migrate on-chain. On the market front, LINK, currently the 11th-largest crypto with a market cap near $10 billion, has seen recent volatility. After a rally above $14 in early January, the token corrected back toward the $12.3 range. Blockchain analytics firm Santiment reported that the top 100 LINK holders have been accumulating during this dip, while smaller retail investors have been selling.
