Sergey Nazarov, the co-founder of Chainlink, stressed that the rapid growth of real-world asset tokenization (RWA) and a relatively stable system underpin the view that the current market correction signals maturation rather than collapse. As of last October, the total cryptocurrency market cap stood at about $4.4 trillion, an all-time high, but roughly four months later it fell by about 44%, erasing around $2 trillion. Nazarov said on X that there have been no events like the FTX bankruptcy or the 2022 collapses of major lending platforms that would have battered the market, and that the market is enduring the correction without systemic risk or widespread risk-management failures.
Nazarov noted that the market for real-world asset tokenization (RWA) has been expanding rapidly. According to data platform RWA.xyz, the on-chain value of RWAs has risen by more than 300% over the past year. He said that RWA prices are not closely linked to Bitcoin or other crypto asset prices and can grow based on intrinsic value, not speculative activity; this shows real-use value. He added that features such as 24/7 market operation, on-chain collateral handling, and real-time data reflection—possible only with on-chain infrastructure—are gradually attracting institutional interest, and more sophisticated blockchain infrastructure will be required for handling complex RWA, which will expand market demand.
Despite Chainlink playing a core role in RWA and on-chain data, its token price has not escaped the bear trend. LINK has fallen about 67% since its October high and more than 83% from its 2021 high; at the time of reporting it traded below $9. Nazarov added that token prices are influenced by short-term speculative sentiment, while the industry structure is driven by real demand and infrastructure maturity; in the long run, the total RWA value could surpass the overall crypto market, signaling a fundamental shift in the industry’s identity.
The broader market is also undergoing structural changes. Jeff Ma, BTSE’s chief operating officer, pointed to external factors as causes of the current downturn; he explained that macroeconomic concerns—including fears of slowing AI growth and the potential appointment of Kevin Warsh as Federal Reserve chair—are weighing on investor sentiment. As Nazarov’s view suggests, the current cryptocurrency market may be more of a transitional phase than a simple downturn, with real-use innovations like RWA demonstrating tangible value and potentially driving long-term momentum.
Practical use holds the key; in the RWA era, understanding the structure is essential to survive. Prices have fallen, but the industry is growing. As Nazarov notes, this market correction signals the rise of real-world asset tokenization rather than the end of speculation. However, superficial understanding cannot capture the true opportunities, and there is more than a tenfold gap between those who ask ‘What is RWA?’ and those who ask ‘Are you tracking RWA.xyz on-chain data?’
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