$LINK

Chainlink has just made an important announcement that directly affects LINK's price volatility within just a few hours.

The market's reaction to this news somewhat indicates its influence on price. According to the official announcement, Chainlink plans to establish a strategic LINK reserve fund.

The network stated that this new Chainlink reserve fund is part of a sustainable development and long-term growth plan. Chainlink will use revenue from its decentralized infrastructure to fund this reserve, including both on-chain and off-chain revenues.

Additionally, the network disclosed that it has already deposited $1 million into the reserve fund to kickstart it. The amount of LINK locked in the reserve fund will remain unchanged for many years.

This information means that the reserve fund will buy back LINK from the market. Although it is too early to determine the potential impact, this move is likened to an organizational step that could help boost long-term demand.

The launch of the new fund also means that the higher the network's usage, the larger the reserve fund will be.

Just a few months ago, U.S. President Donald Trump mentioned plans to establish a national cryptocurrency reserve fund and LINK was among the selected coins to be included in this fund.

The crypto market has positively received the news about the Chainlink reserve fund, as reflected in the price response. At the time of writing, the price of LINK has increased by 10.5% in the past 24 hours.

This positive reaction has extended the recovery that began earlier in the week. The price has surpassed the $18 mark after a 16% increase from Sunday’s low.

Despite the recent recovery, the price of LINK is still significantly lower than the levels seen in July. Last month, LINK briefly surpassed the $20 mark before entering a strong correction.

Currently, the price is still quite far from the previous peak in December when LINK surged above $30.

If it recovers, LINK could increase by about 13% to retest the July peak and about 72% if it returns to the price level reached in December.

Co-founder reveals tokenization plans.

Chainlink co-founder Sergey Nazarov shared plans for the Chainlink reserve fund during an interview with crypto KOL Scott Melker, host of the popular podcast The Wolf of All Streets.

He even revealed plans to make Chainlink a major player in the burgeoning tokenization space. Nazarov stated that Chainlink aims to become the leading platform for deploying tokenized commodities while making them more attractive compared to traditional commodities.

Part of the reason for this direction is that tokenized versions can attract larger liquidity pools from around the world. Nazarov also echoed a similar sentiment expressed by Paul S. Atkins, the Acting Chairman of the SEC.

This leader also mentioned new laws related to stablecoins, predicting that the market capitalization of stablecoins could rise to about 2–3 trillion dollars. He also forecasts that stocks and commodities will be widely tokenized.

The CEO of Chainlink believes that this wave of tokenization will unlock many economic benefits of scale, such as a superior financial system, including better risk management, greater transparency, and more efficient on-chain settlement.

In other words, Nazarov's forecast emphasizes that a global shift is approaching, moving towards a future of a blockchain-based financial system. Chainlink has also positioned itself as a key pillar supporting that future.

Additionally, he believes that traditional finance will try to catch up but will not be able to due to too many changes that need to be made.