Chainlink's Buying Power Can't Stabilize LINK Despite Consistent Purchases
Key Summary
Chainlink's reserve continues to buy its own token, LINK, but the price remains down due to broader market trends and daily trading volume, despite the Reserve's efforts to absorb supply and increase buying power.
Precedent & Market Context
Chainlink's buying power has been a topic of interest in recent months, with the reserve spending real revenue to buy LINK off the market every day. However, despite this consistent buying pressure, the token's price continues to slide lower. The broader crypto market has been influenced by concerns about a potential Bitcoin crash, causing smaller tokens like LINK to sell off. High Bitcoin dominance has also led to a selloff in smaller altcoins, making it challenging for Chainlink's Reserve to meaningfully lift prices.
Main Event
The Chainlink Reserve actively buys Chainlink (CRYPTO:LINK) with revenue generated from the network’s services, yet the token’s price keeps declining. On September 28, 2026, LINK closed at $15.44, but it plunged 23.5% to an intraday low of $11.81 on October 15, all while the Reserve continued its buying spree. LINK is trading at $12.24, down 5.2% over the past week. In the two weeks leading up to October 16, the token fell 10.2%, though it remains up 13.4% over the past 30 days.
Analysis & Market Impact
The Chainlink Reserve launched in 2025 and uses revenue from Chainlink’s services to buy LINK. This revenue comes from on-chain fees paid inside blockchains and off-chain payments from enterprises that use Chainlink. However, the Reserve’s purchasing power depends on how much revenue Chainlink can convert into LINK, which arrives in increments. Meanwhile, traders, funds, and large investors constantly move substantial amounts of money in and out of LINK, making it challenging for the Reserve to have a significant impact on the daily trading activity.
Implications & Outlook
Despite the challenges, Chainlink still holds the 16th position by market cap among all cryptocurrencies, and buyer interest hasn’t waned, as shown by its 13.4% increase over 30 days through October 16. The Reserve lacks the strength to significantly lift LINK’s price, but its efforts may eventually grow as Chainlink’s revenue expands. For a recovery to take place, the overall market selloff must first stabilize. Additionally, LINK needs to reclaim its October 11 closing price of $13.33, the last time it closed above $13, before it can set its sights on a potential recovery.