The current market cycle is highlighting structural progress rather than excess risk, according to recent comments by the founder of Chainlink shared on X.
Key Takeaways
This cycle shows a more resilient crypto market, with no major institutional collapses.
Real-world assets are moving on-chain regardless of crypto price swings.
On-chain markets are increasingly competing with traditional finance.
Institutional adoption is being driven by infrastructure and real utility, not speculation.
Instead of another boom-and-bust narrative, this phase appears to be testing whether crypto infrastructure can withstand stress – and so far, it largely has.
Fewer failures point to a maturing industry
As noted by Sergey Nazarov, one of the most important signals this cycle is the absence of large institutional failures. Despite sharp drawdowns and liquidity pressure, there have been no system-wide blowups comparable to the previous cycle, which was marked by collapses such as FTX.
Improved risk management and more robust systems are making crypto a more credible environment for both institutional and retail capital.
Real-world assets move on-chain regardless of prices
Another major takeaway is that real-world asset adoption is increasingly decoupled from crypto prices. Nazarov points out that tokenization and on-chain markets tied to traditional assets continue to expand even when assets like Bitcoin are under pressure.
On-chain perpetual markets for commodities such as silver are now competing with traditional venues, particularly when trading in permissioned markets becomes more restrictive, underscoring the independent value of always-on, on-chain infrastructure.
Three trends shaping the next growth phase
From this cycle, Nazarov identifies three forces driving the industry forward. First, on-chain perps and tokenized real-world assets are creating durable value that is not reliant on speculative momentum.
Second, institutional adoption is being driven by the practical advantages of DeFi, especially 24/7 permissionless markets. Third, as RWAs become more complex, demand is rising for infrastructure that can reliably connect blockchains with off-chain data and legacy financial systems.
Why infrastructure and data matter
Nazarov argues that data is the foundation enabling RWAs to function on-chain, from pricing feeds and proof-of-reserves to fund NAVs. Chainlink already supplies most of DeFi’s data needs and is expanding its institutional footprint through integrations with providers such as S&P and ICE.
Alongside data, cross-chain connectivity and workflow orchestration are becoming essential as more of the real economy moves on-chain.
RWAs could reshape the industry’s focus
Looking ahead, Nazarov believes real-world assets on-chain could eventually surpass cryptocurrencies in total value, fundamentally changing what the crypto industry is centered around. While digital assets would still benefit from deeper on-chain liquidity, RWAs may be the key catalyst that pushes blockchain technology into true financial mainstream adoption.
