Here’s Why Chainlink (LINK) Is Emerging as the Go-To Play for Institutional Tokenization
TLDR:
Chainlink secures $84.65B in on-chain value, dominating the Ethereum oracle market with 84% share.
RWA total value locked has grown from $1B to $13B in two years, driving demand for Chainlink’s services.
Partnerships with SWIFT, DTCC, and JPMorgan strengthen its position in institutional blockchain adoption.
Tokenomics link adoption to LINK buybacks and staking, creating a persistent supply sink.
The rapid expansion of tokenized assets is aligning with what some analysts see as Chainlink’s strongest growth phase yet.
Market commentator Miles Deutscher noted that the protocol’s position in powering real-world asset (RWA) infrastructure could make it one of the most strategic plays of this market cycle. Chainlink now secures tens of billions of dollars on-chain while playing a central role in bridging traditional finance and blockchain ecosystems.
As RWAs gain traction, the need for secure, interoperable data services is growing at pace. Deutscher said this cycle may cement $LINK as an indispensable part of the on-chain economy.
The Role of Chainlink in the $13B RWA Surge
Deutscher pointed to data showing RWA total value locked has surged from about $1 billion to more than $13 billion in just two years. This growth has attracted institutions like BlackRock, Stripe, and Circle, all moving toward tokenization to improve settlement speed and efficiency.
$LINK might be the most obvious large-cap play for this cycle (yet most people will miss it).
It’s the #1 winner from the institutionalisation of crypto and the explosive growth of stablecoins, tokenisation, and RWAs.
: Why I’m betting big on $LINK – the full thesis.
— Miles Deutscher (@milesdeutscher) August 13, 2025
In a fragmented, multi-chain environment, Deutscher explained that Chainlink’s oracle network acts as the universal translator, enabling reliable data transfer between blockchains.
Chainlink currently holds an estimated 84% share of the Ethereum oracle market, securing $84.65 billion in value. Deutscher contrasted this with other protocols often associated with institutional adoption. He noted that Chainlink secures over 1,000 times more on-chain capital than some competitors while having a smaller market capitalization.
He stressed that while it is unclear which layer-1 chain or RWA platform will dominate, every tokenized asset still needs accurate price feeds, a role where Chainlink is already the market leader.
Tokenomics, Staking, and Institutional Deals Boosting LINK
According to Deutscher, Chainlink’s tokenomics are structured to tie adoption directly to token demand. Fees from blockchain services and private network integrations are converted into LINK and added to the Chainlink Reserve.
This reserve supports growth and funds development, while staking mechanisms remove tokens from circulation and currently offer yields of around 4.32%.
The protocol has also formed partnerships with major financial infrastructure providers, including SWIFT, DTCC, Euroclear, JPMorgan, and Mastercard. Deutscher noted that these integrations place Chainlink ahead of most protocols in terms of traditional finance adoption.
From a market perspective, Deutscher highlighted that LINK recently broke through the $20 weekly resistance level, a price point that has acted as a major pivot in past cycles.
He suggested that the breakout, combined with strong institutional momentum, could provide the conditions for further upside if adoption trends remain intact. At press time, LINK trades at $23.44, up about 35% in a week.
LINK price on CoinGecko
The post Here’s Why Chainlink (LINK) Is Emerging as the Go-To Play for Institutional Tokenization appeared first on Blockonomi.
Filed under: Bitcoin - @ August 14, 2025 12:18 pm