Chainlink (LINKUSD) is a blockchain network that was created to solve the “blockchain oracle” problem, which is the inability of blockchains to access external, real-world data. Chainlink's niche gives it an indispensable use case, and it has climbed to become the 12th-largest crypto project by market capitalization today.

The protocol is undeniably useful, but its native token, LINK, has been a receipt rather than a necessity. Node operators are paid in LINK, but that single use was not a value driver, and it has underperformed other cryptos like Bitcoin (BTCUSD) significantly since 2021. 

Things have changed significantly in recent years.

Chainlink rolled out staking in 2022, and holders can now stake tokens to back node operators. The Chainlink Reserve is the most recent catalyst, and it could be a game-changer.

Why the Crypto Reserve Is a Tailwind for LINK

The Chainlink Reserve was launched on Aug. 7, 2025. It will buy LINK on the open market and lock it away. The money for those purchases will come from protocol revenue from both on-chain decentralized finance (DeFi) usage and off-chain enterprise clients like Mastercard (MA) and UBS (UBS).

Moving forward, any currency that arrives will be converted through the Payment Abstraction mechanism into LINK and then funneled into the new Reserve. The contract for the Reserve already holds over $1 million worth of LINK.

Converting the cash flow into LINK and locking it on-chain ties the success of the entire network directly to the token. Every new enterprise integration now adds some bid pressure in the spot market, something the protocol has never enjoyed before.

LINK is up 38.7% over the past month and can deliver more upside if the broader market cooperates. The all-time high is $52.88, so it is at a nearly 60% discount compared to previous highs.

Should You Buy Chainlink Now?

Speaking of a discount, if you look at the market capitalization chart, Chainlink has a market cap of $14.6 billion. The peak market cap was $20.76 billion in 2021. The price today is near $21.50, down significantly from highs above $50. 

I believe that LINK is one of the most solid cryptos you can buy for the long run. Investors will likely be rewarded generously if they manage to get in before a possible altcoin season.

For those looking at the short term, I would look at the $21-$23 range.

Bulls should expect a bounce above $24 for a continuation of the current uptrend. This can happen as long as the broader market remains bullish.