Chainlink (LINK) has been navigating a turbulent phase marked by bearish market sentiment throughout November, resulting in a significant price drop—down 50% from its peak in the previous quarter. Despite this downturn, investment firm Grayscale and various analysts are holding onto a positive long-term perspective for the asset. The recent three-month decline has brought LINK back to a crucial support level, historically significant over the past two years, providing a potential opportunity for traders and investors.
In a newly released research report titled “The LINK Between Worlds,” Grayscale emphasizes Chainlink’s integral role as a foundational infrastructure layer within decentralized finance (DeFi) and asset tokenization. The report elaborates on Chainlink’s function as a middleware, allowing secure connections between on-chain applications and off-chain data, enabling cross-blockchain interactions, and addressing enterprise-level compliance requirements.
Zach Pandl, Grayscale’s Head of Research, pointed out the still-nascent state of tokenized assets, which currently constitute only about 0.01% of the global equity and bond market capitalization. The implications of this fact suggest substantial growth potential over the next decade, and Pandl articulates a strong belief that Chainlink is central to unlocking this potential.
Coinciding with the report, Grayscale has also filed an application with the U.S. Securities and Exchange Commission (SEC) for a spot LINK Exchange-Traded Fund (ETF), expected to hit the market under the ticker GLNK on December 2, 2025. Additionally, Bitwise has listed its own Chainlink ETF on the Depository Trust and Clearing Corporation (DTCC) platform, identified by the ticker CLNK. This movement indicates a growing institutional interest in the LINK asset. According to CoinGlass data, Grayscale’s holdings of LINK token had surpassed 1.3 million tokens as of November 2025, demonstrating a remarkable growth of more than fourfold over the past two years.
The increasing accumulation of Chainlink tokens by Grayscale during periods of price drops conveys the firm’s unwavering confidence in the asset’s long-term viability. Another noteworthy indicator is the LINK Exchange Supply Ratio, which reached an unprecedented low in November. This ratio evaluates exchange reserves as a percentage of the total supply and highlights a declining availability of LINK on exchanges—from 170 million tokens in October to 131 million in November.
With the current Exchange Supply Ratio at a record low of 0.13, this scarcity suggests a decreased selling pressure, as more investors appear willing to withdraw their tokens for long-term holding rather than immediate trading. Such conditions often set the stage for notable price escalations when demand begins to outstrip supply.
From a technical analysis standpoint, LINK remains embedded within a substantial bullish structure, recently hitting its strongest support level in two years. Analysts from CryptoPulse noted that LINK has been oscillating within a large ascending channel and is currently situated at the bottom of this structure—a point where prices have previously rebounded.
In conclusion, with substantial backing from Grayscale, the anticipated launch of multiple ETFs, a historically low exchange supply, and a robust technical framework, Chainlink appears poised for potential recovery. Investors and traders are keeping a close watch on this landscape, as conditions seem favorable for a turnaround in the coming months.
