Ethereum News Today: Chainlink Launches Onchain Treasury to Stabilize LINK Value

Generated by AI AgentCoin World
Tuesday, Aug 19, 2025 10:46 pm ET2min read
Aime RobotAime Summary

- Chainlink launched an onchain treasury in August 2025 to accumulate LINK tokens using service fees and enterprise contracts, aiming to stabilize value by reducing circulating supply.

- The strategy, mirrored by BitMine and SharpLink increasing ETH holdings, reflects a broader crypto trend of rethinking digital asset allocation within corporate financial frameworks.

- Co-founder Sergey Nazarov emphasized the model's focus on reinvesting profits into on-chain reserves, contrasting traditional crypto treasuries that prioritize Bitcoin as a store of value.

- Analysts and whale activity validated the approach, with LINK surging 18% weekly as $27M flowed into whale addresses, driven by fundamental improvements rather than speculation.

- Chainlink's 12 new blockchain integrations in 2025 reinforced its infrastructure role, aligning with growing institutional interest in utility-driven tokens over pure value-storage assets.

Chainlink has launched a new onchain treasury reserve in mid-August 2025 to accumulate its native token, LINK, using revenue generated from service fees and enterprise contracts. This strategic move aims to stabilize the token’s value by reducing circulating supply and reinforcing tokenomics aligned with the protocol’s expanding role in decentralized data infrastructure. The

Reserve has no plans for token redemptions in the next two years, signaling a long-term commitment to token demand management [1].

The initiative has been mirrored by other blockchain-native entities, including BitMine and SharpLink, which are also increasing their ETH holdings as part of treasury strategies. These actions reflect a broader trend in the crypto industry where firms are rethinking how digital assets are allocated, with a focus on integrating blockchain into corporate financial frameworks. The shift is expected to influence market dynamics, especially in staking and decentralized finance (DeFi), where

remains a central asset [2].

Sergey Nazarov, Co-Founder of Chainlink, emphasized that the new treasury model enables the protocol to "actively drive demand for our token economics." This strategy involves reinvesting off-chain profits into on-chain reserves, creating a more sustainable financial model that supports use cases across capital markets and institutional finance. The approach contrasts with traditional crypto treasury practices, which often involve holding

or other store-of-value assets [3].

Market analysts have responded positively to Chainlink’s treasury strategy. According to Michaël van de Poppe, a crypto analyst, the Chainlink Treasury and Reserve initiatives have contributed to a bullish phase for the LINK token. The token has traded at $24.3 and shown strength in technical indicators, with the price recovery driven by fundamental improvements rather than speculative activity [3]. Van de Poppe noted that this trend signals a more mature market dynamic for crypto assets.

Whale activity further supports the optimism. LINK surged 18% within a week, breaking the $21 resistance level and approaching $29 as whale addresses added $27 million in LINK holdings. The strategy of converting service revenue into a strategic LINK reserve has been described as a key factor in the token’s revival, offering clarity and stability to market participants [4].

Chainlink’s treasury initiative is also supported by its expanding infrastructure role. In 2025, the protocol completed 12 new integrations across 10 different blockchains, reinforcing its position as a foundational infrastructure provider in the Web3 ecosystem. These integrations are spurring broader discussions around scalability and adoption, particularly in DeFi and smart contract execution, where secure and real-world data are critical [6].

The shift in corporate treasury strategies is also evident in broader market trends. New data indicates a slowdown in Bitcoin demand among corporations, with Ethereum and utility-driven tokens like LINK gaining traction. This trend highlights a growing emphasis on digital assets with functional use cases rather than those purely viewed as stores of value [8].

Chainlink’s strategic treasury approach, alongside its technical integrations and growing institutional interest, positions it as a key player in the evolving crypto landscape. While forecasts suggest a potential rally for LINK to $30, the fundamental strength of its treasury and infrastructure initiatives appears to be the driving force behind its performance [9].

Source:

[1] Cointelegraph, [https://cointelegraph.com/news/chainlink-cardano-wlf-trump-crypto-protocol-reserve](https://cointelegraph.com/news/chainlink-cardano-wlf-trump-crypto-protocol-reserve)

[2] Intellectia, [https://intellectia.ai/news/crypto/blockchain-native-protocols-get-creative-in-crypto-treasury-arms-race](https://intellectia.ai/news/crypto/blockchain-native-protocols-get-creative-in-crypto-treasury-arms-race)

[3] BlockchainReporter, [https://blockchainreporter.net/chainlink-trend-turns-bullish-as-treasury-and-reserve-strengthen-outlook-trading-around-24-currently/](https://blockchainreporter.net/chainlink-trend-turns-bullish-as-treasury-and-reserve-strengthen-outlook-trading-around-24-currently/)

[4] CryptoPotato, [https://cryptopotato.com/link-jumps-18-weekly-whats-driving-chainlink-to-a-6-month-peak/?amp](https://cryptopotato.com/link-jumps-18-weekly-whats-driving-chainlink-to-a-6-month-peak/?amp)

[6] Coinfomania, [https://coinfomania.com/chainlink-12-new-integrations-2025/](https://coinfomania.com/chainlink-12-new-integrations-2025/)

[8] MEXC, [https://www.mexc.com/es/news/66346](https://www.mexc.com/es/news/66346)

[9] ICOBench.com, [https://icobench.com/news/chainlink-price-prediction-link-hits-26-after-15-intraday-surge-while-hyper-breaks-presale-record/](https://icobench.com/news/chainlink-price-prediction-link-hits-26-after-15-intraday-surge-while-hyper-breaks-presale-record/)