No Systematic Failures, Increased On-Chain Assets

Chainlink’s Nazarov said that real-world assets could surpass cryptocurrencies in total value.

Bitcoin and other cryptocurrencies are not immune to errors. Despite continued weakness, this cycle at least avoided the major institutional failures seen in previous bear markets.

And as investors experience problems, real world assets (RWAs) are quietly growing on the chain regardless of crypto prices.

RWAs Keep Going in Chains

In a recent letter to X, the founder of Chainlink Sergey Nazarov stressed that, unlike the previous cycle, which saw the collapse of FTX and many lenders during a large price drop, this cycle did not produce major systemic risks. He said that crypto systems have effectively managed price drag and liquidity, thus creating a more “reliable” environment for both retail and institutional funds.

Nazarov also said that the migration of real-world assets to blockchains is accelerating regardless of cryptocurrency prices. He pointed to the continued issuance of RWA and the growth of permanent markets for traditional commodities such as silver, which are competitive markets, especially at times when permitted trading becomes restrictive or highly risky.

According to Nazarov, the growth of RWAs is driven by the number of 24/7/365 markets, on-chain collateral management, and access to reliable market data, rather than the volatility of Bitcoin or other crypto assets.

He outlined three trends expected to shape the next phase of crypto adoption. First, permanent on-chain markets and real-world assets with tokens provide long-term, permanent value. Second, institutional adoption is driven by significant technological advantages, including permissionless DeFi markets, which are always present. Third, the infrastructure supporting RWAs is growing in demand, as complex assets require reliable systems for tokenization, data management, and market operations.

Nazarov added that if current trends continue, RWAs on-chain could surpass cryptocurrencies in total value, and be able to redefine the industry while continuing to support the growth of cryptocurrency by bringing more money to the chain.

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Engineering Work for All RWA Projects

Data shared by Santiment shows strong developer activity across RWA projects over the past 30 days. Hedera (HBAR) ranked first, followed by Chainlink (LINK) and Avalanche (AVAX). Stellar (XLM) and IOTA (IOTA) are placed fourth and fifth. Chia Network (XCH), VeChain (VET), Lumerin (LMR), Creditcoin (CTC), and Injection (INJ) completed the top ten.

The ratings also revealed that RWA-focused blockchain projects continue to see steady development activity despite market turmoil.