Chainlink Co-Founder on Crypto State of Affairs: No Major Systemic Risk Yet, On-chain Asset Trend Accelerating

On February 10, Chainlink co-founder Sergey Nazarov shared a lengthy post on X (formerly Twitter) addressing the current crypto market landscape. He highlighted that market cycles are a normal part of the cryptocurrency industry—what’s critical is that these cycles reveal the sector’s development trajectory, and the trends defining the next phase (adoption, value creation) will set the industry’s course. Notably, there have been no major risk management failures to date that have caused large institutions to collapse or systemic risk to spread. This indicates the industry’s risk management practices are significantly stronger in this cycle than in the previous one. Nazarov also stated that, regardless of price fluctuations, the on-chainization of real-world assets (RWAs) is accelerating consistently. This underscores that RWA on-chainization isn’t closely tied to crypto prices; it has unique value that can grow independently of Bitcoin or other crypto asset prices. Further, this trend will fundamentally reshape the industry’s landscape.