Chainlink Launches On-Chain LINK Reserve to Boost Token Demand
Chainlink has launched an on-chain LINK Reserve to strengthen token liquidity and demand. The LINK Reserve uses automated smart contracts and Payment Abstraction to convert gas fees, stablecoins, service fees and enterprise payments into LINK via Chainlink or DEXs like Uniswap V3. Since launch, over $1 million in LINK has been locked with no withdrawals planned for years. Additionally, 50% of staking-verified service fees now flow into the LINK Reserve instead of node operators. A public analytics dashboard offers real-time tracking of reserve size. After the announcement, LINK’s price rose above $19.30 and large wallets holding 100,000–1,000,000 LINK increased their positions. This mechanism reduces sell pressure, drives sustainable demand and supports long-term market confidence in LINK.
Bullish
The LINK Reserve initiative converts various payments and staking fees into LINK, reducing sell pressure and boosting organic demand. Short-term, LINK spiked past $19.30 and large wallets added positions. Long-term, automated conversions and fee redirection create sustainable accumulation and improved liquidity. This strengthens market confidence and underpins price stability, making the news a bullish catalyst for LINK.