Sergey Nazarov believes RWAs will surpass crypto in value, showing industry maturity.
Co-founder of Chainlink, Sergey Nazarov, stated that the RWA segment will eventually surpass the crypto market in terms of value. In his view, the current cycle demonstrates the industry’s maturity and its readiness for integration with TradFi.
Nazarov highlighted two key observations regarding the current state of the market.
Firstly, the absence of major failures in risk management. Unlike the previous cycle, which was marked by the collapse of FTX and a series of creditor bankruptcies, the system has now withstood price declines without global upheavals. The industry’s ability to endure liquidity downturns makes it more reliable for institutional capital.
Secondly, the migration of real-world assets to the blockchain is accelerating regardless of Bitcoin’s price movements. Nazarov noted that on-chain markets for derivatives of traditional commodities (such as silver) are already competing with classic platforms.
The head of Chainlink identified three trends that will transform the financial landscape:
Nazarov emphasized the role of interoperability in this process. Chainlink holds over 70% of the DeFi market for data provision and collaborates with providers like S&P and ICE. He identified synchronization of processes as a key development element — coordination between blockchains, off-chain systems, and AI through the Chainlink Runtime Environment.
“If these trends continue, on-chain RWAs will surpass cryptocurrencies in total value. This will fundamentally change the essence of our industry. Cryptocurrencies will grow as an asset class, but it is RWAs that will make the technology mainstream,” concluded Nazarov.
Earlier in January, analysts at ARK Invest stated that the market volume for tokenization of real-world assets could exceed $11 trillion.
