25 Oct
25Oct

Pro-Ripple lawyer Bill Morgan believes both XRP and Chainlink (LINK) are set for a standout performance in 2026. This optimistic forecast is based on two new mechanisms launching in 2025 that he argues will fundamentally reduce circulating supply and strengthen market fundamentals for both assets.


Chainlink’s "Flywheel Effect" on LINK Supply

Morgan highlights Chainlink's new strategic reserve as the primary driver for LINK. This reserve uses the revenue generated from oracle and service fees to quietly and continuously buy back LINK from the open market.

  • Mechanism: Morgan compares it to a corporate stock buyback, describing it as a "flywheel effect" where adoption (more fees) leads to greater accumulation, tightening the supply.
  • Impact: This system provides a natural, long-term price support mechanism. As the network's adoption grows across DeFi and enterprises, the continuous absorption of LINK creates scarcity, setting up LINK for a steady upward push into 2026.

Evernorth’s Institutional Buying Pressure on XRP

For XRP, Morgan points to the launch of Evernorth, a NASDAQ-listed, regulated entity designed to manage an institutional XRP treasury.

  • Mechanism: Evernorth actively uses XRP for lending, staking, and DeFi yield generation. Crucially, the profits are then recycled to purchase more XRP, creating an "accumulation loop."
  • Impact: This sustained buying pressure could eventually neutralize the selling pressure from Ripple's scheduled escrow releases. Furthermore, Evernorth offers a compliant on-ramp for institutional investors, which, combined with improving regulatory clarity in 2025, could trigger significant institutional capital inflows into XRP.

2026 Outlook: Fundamentals Over Hype

Morgan concludes that both XRP and LINK are positioning themselves to benefit from complementary supply-reduction strategies heading into 2026. Chainlink uses its revenue for buybacks, while XRP utilizes institutional demand and yield generation for active accumulation. If these mechanisms gain traction throughout 2025, he predicts a strong, sustained rally for both tokens driven by robust fundamentals rather than speculation.

October 2025, Cryptoniteuae

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