Real‑World Assets Expand On‑Chain as Cycle Avoids Systemic Failures
Chainlink co‑founder Sergey Nazarov says this crypto cycle differs from past bear markets by avoiding major institutional collapses (eg, FTX) despite a large market cap drawdown. He argues systems handled price and liquidity stress more robustly, creating a more reliable environment for retail and institutional capital. Nazarov highlights a steady migration of real‑world assets (RWAs) onto blockchains — driven by 24/7 markets, on‑chain collateral management, and dependable market data — rather than by crypto price movements. Key structural trends: growth in on‑chain perpetual markets, increasing tokenization of RWAs, and rising institutional adoption enabled by permissionless DeFi infrastructure and improved data oracles. Nazarov warned that Chainlink’s native token LINK has materially underperformed (down ~67% from October highs and >80% from its 2021 peak), even as RWA activity and developer work grow. Santiment developer‑activity data cited in follow‑up reporting shows strong RWA project development recently, led by HBAR, LINK and AVAX, with additional activity for XLM, IOTA, XCH, VET, LMR, CTC and INJ. Nazarov suggested that continued RWA expansion could eventually exceed cryptocurrencies in total on‑chain value and bring more institutional capital on‑chain. For traders: the story signals structural maturation and a shift of market attention toward tokenized real‑world collateral and infrastructure services (oracles, perpetuals, collateral rails), while short‑term token price performance (notably LINK) may remain weak amid the transition.
Bearish
The coverage combines comments stressing structural progress (growing RWAs, perpetuals, better risk management) with a clear warning that Chainlink’s token (LINK) has substantially underperformed. For LINK specifically, the news is bearish: Nazarov’s remarks acknowledge sector maturation but highlight LINK’s weak price relative to on‑chain growth and broader market recovery. Short term: traders may remain cautious on LINK due to continued downside risk and profit‑taking as market participants reprice infrastructure tokens while capital reallocates into RWA projects and stable, yield‑oriented uses. Developer activity and RWA adoption are bullish for long‑term on‑chain demand for oracle services, which could support LINK over multiple quarters or years if usage and on‑chain collateralization translate into sustained demand for oracle data and staking. However, that is a medium/long‑term conditional thesis; near‑term price action is likely to remain pressured until clear monetization and demand metrics for LINK emerge or the broader crypto market turns bullish. Other tokens mentioned (HBAR, AVAX, XLM, IOTA, XCH, VET, LMR, CTC, INJ) could see mixed effects depending on their direct exposure to RWA rails and developer momentum.