Chainlink DeFi ambitions exposed: $70 billion TVS + ETF defying the trend to attract funds, LINK may become the "core allocation" for institutions
January 29 News, although the 2025 crypto cycle is widely portrayed as “fundamentally driven,” the actual flow of institutional funds shows a clear divergence. Taking Ethereum as an example, its price retraced about 11% in 2025, but on-chain activity continued to rise. The Fuska and Pecta upgrades significantly reduced fees and alleviated congestion, with daily transaction volumes once surpassing 2.3 million, indicating that network efficiency is beginning to reap benefits in the 2026 cycle. However, capital has not simultaneously flowed back on a large scale.
The divergence in capital movement is especially evident in the ETF market. This week, total crypto-related ETF outflows approached $664 million, while the Grayscale ETF for Chainlink (GLNK) attracted approximately $4.05 million against the trend. During the same period, Ethereum-related products experienced net outflows of over $52 million. Data from SoSoValue also shows that LINK ETF funds even outperformed those of the higher market cap DOGE, and this difference seems less like short-term rotation and more like a long-term allocation choice.
Against the backdrop of intensified DeFi competition, Chainlink is accelerating its efforts to consolidate its infrastructure position. Data from DeFiLlama shows that the total value locked (TVL) across all Layer-1s has rebounded to about $170 billion, reaching a new high since the 2022 bear market, with sectors such as stablecoins, RWA, and artificial intelligence expanding in tandem. Chainlink is actively integrating into these growth engines, recently joining the GAKS global alliance for Korean won stablecoins, securing a key node in Korea’s stablecoin ecosystem.
More importantly, the total value secured (TVS) of the Chainlink network reached approximately $70 billion in Q4 2025, reflecting the scale of real assets supported by its oracles. A high TVS indicates greater trust and deeper application stickiness, which also explains why institutional funds are beginning to view LINK as one of the few high-market-cap assets with sustained fundamental support.
In a cycle where DeFi revival and real-world asset onboarding occur simultaneously, Chainlink is evolving from a “tool protocol” to a “core financial infrastructure.” The resonance between ETF funds and on-chain indicators is reshaping the market’s long-term perception of LINK’s value.
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