The Truth About Chainlink's Undervaluation: From Data Oracles to Financial Infrastructure Transformation

Bitwise Chief Investment Officer Matt Hougan recently stated that Chainlink may be one of the most underestimated infrastructure investments in the crypto space. This view may seem simple, but it reflects a deep misalignment in market perception of Chainlink’s value — most people still see it as a data oracle, unaware that it has long become the core middleware connecting traditional finance and the crypto ecosystem.

Redefining the Value of Chainlink

From “Price Feed” to “Infrastructure Layer”

Hougan’s key insight is to correct a common misconception: Chainlink not only provides price data but also serves as an essential connection channel for external data, assets, and compliance systems across the entire crypto ecosystem. This upgrade in positioning is crucial — it means Chainlink is not just an auxiliary tool for certain applications but a foundational infrastructure, similar to the DNS system of the internet.

According to the latest news, Chainlink is already providing services in the following core application scenarios:

• Stablecoin issuance and operation
• Asset tokenization (RWA)
• Decentralized Finance (DeFi)
• On-chain derivatives trading

These areas are precisely the key development directions for the crypto industry in 2026, indicating that Chainlink is at the intersection of all mainstream trends.

Multiple Evidence Recognized by Institutions

Another key point emphasized by Hougan is the widespread adoption by traditional financial institutions. Top global financial institutions such as SWIFT, JPMorgan, Visa, and Fidelity have already adopted Chainlink’s services. This is not a small-scale effort — these institutions represent the backbone of the global financial system, and their choice is essentially the highest recognition of Chainlink’s technological reliability and necessity.

Looking at market actions, the importance placed on Chainlink by institutions continues to grow:

• Bitwise’s spot LINK ETF has been approved and is operational
• CME will launch standard and micro LINK futures contracts on February 9, settled in cash
• These are privileges typically reserved for traditional financial institutions

Where Does the Price and Value Mismatch Lie?

Currently, LINK’s market performance seems somewhat disconnected from its status as infrastructure. According to the latest data, LINK is priced at $12.18, with a market cap of $863 million, ranking 13th. It has fallen 12.58% over the past 7 days, and this correction may be a sign of being undervalued.

In comparison, if Chainlink truly is the “core middleware of finance and crypto integration,” and has already been adopted by giants like SWIFT and JPMorgan, its market cap and attention should better reflect this importance. But the collective market perception often lags behind reality.

Why Is Now a Critical Moment?

The reason Hougan’s viewpoint is being expressed now is very timely. According to relevant information, a consensus among crypto industry institutions is gradually forming for 2026 — whether it’s Goldman Sachs, a16z, or other major players, they are increasing their bets on RWA and stablecoins. And these applications fundamentally rely on data and asset connection layers like Chainlink.

In other words, as the adoption of stablecoins, asset tokenization, and real-world crypto continues to advance, the importance of Chainlink as a foundational connection layer will only become more prominent. This is a long-term, structural growth in demand, not short-term hype.

Summary

Bitwise’s Chief Investment Officer’s perspective points to a simple but profound fact: the market’s perception of Chainlink is still stuck at the “data oracle” stage, but its actual value has already upgraded to “financial infrastructure.” Widespread institutional adoption, ETF approval, and upcoming futures are all evidence that its value is underestimated by the market.

The key is, this underestimation will not last forever. When stablecoins, RWA, and other applications truly achieve large-scale deployment, the necessity of Chainlink as a foundational connection layer will become even more apparent, and the market’s perception gap will eventually be bridged. In this process, early investors who recognize this trend may position themselves better.