Chainlink co-founder Sergey Nazarov believes the current crypto bear market stands apart from previous downturns, arguing that it highlights how much the industry has matured rather than exposing deep structural weaknesses.
Despite the global crypto market losing roughly 44% of its value since the October peak of $4.4 trillion — nearly $2 trillion wiped out in just four months — Nazarov says the pullback has revealed resilience rather than fragility.
Posting on X, he emphasized that market cycles are inevitable, but what matters most is what those cycles reveal about the industry’s underlying strength and progress.
No Major Collapses Signal a More Resilient Crypto Industry
One of the biggest differences this time, according to Nazarov, is the absence of large-scale institutional failures. Unlike the 2022 downturn, which was marked by catastrophic collapses such as FTX and major crypto lending platforms, the current drawdown has not triggered systemic risk events.
Nazarov noted that there have been no major risk-management failures or institutional blowups during this cycle, suggesting that crypto infrastructure, compliance standards, and market participants are better equipped to handle volatility.
This growing resilience is echoed by analysts across the industry. Bernstein analyst Gautam Chhugani recently described the current environment as “the weakest Bitcoin bear case in its history,” arguing that nothing fundamentally broke and no hidden risks are surfacing. Similarly, BTSE COO Jeff Mei pointed out that the sell-off has largely been driven by external macro factors rather than crypto-native failures.
Real-World Asset Tokenization Continues to Grow Despite Price Declines
Nazarov’s second key point centers on the rapid growth of tokenized real-world assets (RWAs) and on-chain financial products, which continue to expand regardless of crypto price action. According to data from RWA.xyz, the on-chain value of tokenized RWAs has surged more than 300% over the past year.
This growth, he argues, demonstrates that RWA tokenization provides real utility beyond speculation. Features such as 24/7 trading, on-chain collateral, real-time data, and transparent settlement are attracting institutional interest even as token prices decline.
While Chainlink’s own token, LINK, has struggled — down roughly 67% from its October peak and over 80% from its 2021 all-time high — Nazarov sees this as disconnected from the long-term infrastructure demand being created by RWAs and on-chain derivatives like perpetual contracts.
