Supply squeezes remain one of the key drivers of long-term growth.
From a technical standpoint, locking up a portion of the total supply naturally pushes the per-coin valuation higher. When this supply reduction meets rising demand, it sets the stage for a strong scarcity-driven rally.
But it’s not just about the charts. These supply shocks also help reinforce holding conviction. That said, does Chainlink’s [LINK] recent accumulation really support this thesis, given LINK’s recent underperformance?
Source: Chainlink
For context, Chainlink recently revealed that its reserve has added 99,103 LINK, its largest single accumulation so far. This pushes the total amount of LINK locked in reserves to 1.77 million, further tightening supply.
As the chart above shows, that’s a 377% increase from the 371K LINK held before Q4 2025, meaning 1.4 million LINK has been added since. And yet, that supply squeeze hasn’t really shown up in price action so far.
Notably, Chainlink funds its accumulation through both on- and off-chain revenue, pointing to solid adoption and network usage. This divergence raises a key question: Is LINK simply being undervalued by the market?
Chainlink’s activity signals scarcity-driven potential
In the current market setup, being undervalued is actually a bullish signal.
Looking at LINK, it fits this setup perfectly. Acting as a bridge, Chainlink generates revenue through fees whenever smart contracts on other chains rely on its oracles, such as a DeFi lending protocol using its price feeds.
Recently, fees across 13 chains hit an all-time high, with Ethereum [ETH] alone bringing in $6.8 million, showing strong demand for Chainlink’s services and growing network usage that’s capturing real value.
Source: DeFiLlama
Put simply, solid on-chain revenue is flowing straight into LINK’s reserve.
And yet, that hasn’t shown up in the price, with LINK standing out as one of the worst-performing assets, down 39% in Q4 2025, and still dipping 11.7% so far in 2026. However, this pullback mostly reflects broader market FUD.
In this context, Chainlink looks undervalued.
Strong on-chain usage and fee generation, combined with strategic accumulation, point to solid fundamentals. Once demand kicks in, LINK could spark a scarcity-driven rally, making this “dip” a great entry point.
Final Thoughts
- Chainlink has locked 1.77 million LINK in reserves, driven by both on- and off-chain revenue, yet this hasn’t shown in price.
- Growing fees across, strong network usage, and strategic accumulation suggest LINK could trigger a scarcity-driven rally once demand returns.
