Chainlink Co-Founder Shares Insight on Crypto Market Cycles

On February 10, Sergey Nazarov, co-founder of Chainlink, shared his perspective on the current cryptocurrency market through a detailed post on X.

Nazarov explained that market cycles are a natural and essential part of the crypto industry. According to him, each cycle reflects the sector’s level of maturity and helps identify the trends that will shape the next stage of adoption and long-term value creation.

He highlighted that, unlike previous cycles, the market is not experiencing major risk-management failures. There are no large institutional collapses or signs of widespread systemic risk, suggesting that overall risk controls have significantly improved compared to earlier market downturns.

Nazarov also emphasized that the tokenization of real-world assets (RWAs) continues to accelerate, regardless of short-term cryptocurrency price movements. This trend, he noted, is not directly dependent on $BTC Bitcoin or broader crypto market fluctuations. Instead, it represents a standalone source of value that can grow independently.

According to Nazarov, real-world asset tokenization is expected to play a major role in reshaping the blockchain industry, potentially driving the next wave of adoption and fundamentally transforming how value is created and transferred on-chain.