Why ChainLINK (LINK) is Outperforming Ethereum and Polkadot in the Current Bull Market

The Bull Market's New Powerhouse: Chainlink's On-Chain Utility and DeFi Integration

In the current bull market, Chainlink (LINK) has emerged as a standout performer, outpacing both Ethereum and Polkadot in key on-chain utility and DeFi integration metrics. While Ethereum maintains its foundational role in DeFi and Polkadot advances cross-chain innovation, Chainlink's Total Value Secured (TVS) and institutional-grade infrastructure have positioned it as the backbone of decentralized finance.

Dominance in Total Value Secured (TVS)

Chainlink's TVS surpassed $95 billion in Q2–Q3 2025, securing over 83% of the value on Ethereum and nearly 100% on Base, according to the Chainlink Quarterly Review. This figure dwarfs Ethereum's DeFi TVL of $62.4 billion in Q2 2025, even as Ethereum captured 56% of all DeFi TVL, per the State of Ethereum Q2 2025 report. The disparity highlights Chainlink's role not just as a DeFi protocol but as the infrastructure layer securing value across ecosystems. By Q3 2025, Chainlink's TVS market share exceeded 68%, cementing its position as the dominant oracle and data infrastructure provider, the Chainlink review shows.

Ethereum's Layer-2 (L2) solutions, such as Arbitrum and Base, contributed 72% of L2 TVL, but these networks rely heavily on Chainlink's Price Feeds and SmartData for real-time data inputs, a point noted in the State of Ethereum report. Meanwhile, Polkadot's DeFi Singularity vision-aiming to unify liquidity across parachains-remains aspirational, with its TVL estimated to be a fraction of Chainlink's TVS.

Institutional Partnerships and Real-World Use Cases

Chainlink's institutional partnerships have further accelerated its adoption. In a landmark move, Chainlink collaborated with S&P Global Ratings to deliver Stablecoin Stability Assessments (SSAs) on-chain via DataLink, enabling real-time risk assessments within smart contracts, a development covered in the Polkadot piece. This integration bridges traditional finance (TradFi) and DeFi, attracting institutional capital that Ethereum and Polkadot struggle to secure.

Additionally, Chainlink's Cross-Chain Interoperability Protocol (CCIP) expanded to Solana in 2025, unlocking $19 billion in asset value by enabling seamless token transfers across chains, the Chainlink review reports. The platform also facilitated the first cross-chain Delivery versus Payment (DvP) transaction between Ondo Chain and J.P. Morgan's Kinexys, settling tokenized U.S. Treasuries (OUSG), demonstrating its ability to meet institutional settlement needs. These developments underscore Chainlink's ability to scale beyond DeFi, addressing institutional-grade settlement requirements.

Ethereum's Limitations and Polkadot's Challenges

While Ethereum's Layer-2 networks reduced gas fees and boosted transaction throughput, they remain dependent on Chainlink for critical data feeds. Protocols like Aave, GMX, and Lido rely on Chainlink's Price Feeds to maintain security and accuracy, as detailed in the Chainlink Quarterly Review. Ethereum's TVL growth (up 33% QoQ to $62.4 billion) is impressive, but it reflects the broader DeFi ecosystem's reliance on Chainlink's infrastructure rather than standalone innovation, according to the State of Ethereum report.

Polkadot's cross-chain ambitions, though visionary, face structural hurdles. Its DeFi Singularity initiative-centered on HydraDX's universal liquidity pool-requires significant user adoption to rival Chainlink's TVS. Moreover, Polkadot's high inflation rates and governance centralization risks could hinder long-term growth, points raised in the Polkadot's DeFi Singularity analysis. While the network allocated $795,000 DOT to incentivize liquidity for DOT on external chains, this pales in comparison to Chainlink's institutional-grade partnerships and TVS growth noted above.

Conclusion: Chainlink's Strategic Edge

Chainlink's outperformance in the bull market stems from its unique position as both a DeFi infrastructure provider and a cross-chain interoperability solution. With a TVS exceeding $95 billion, institutional-grade partnerships, and CCIP's expansion to Solana, Chainlink has established itself as the go-to infrastructure for securing and moving value across ecosystems. While Ethereum and Polkadot continue to innovate, their success increasingly hinges on Chainlink's ability to deliver reliable, real-time data and secure settlements. For investors, this dynamic positions LINK as a critical asset in the evolving DeFi landscape.