Chainlink’s Nazarov: No Major Collapses Set This Bear Market Apart

TLDR

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Chainlink co-founder Sergey Nazarov believes the current bear market stands out due to the absence of major institutional collapses.
The growth of tokenized real-world assets has continued to accelerate despite the downturn in the broader crypto market.
Nazarov highlights that the tokenization of real-world assets provides value beyond crypto speculation and remains unaffected by market pricing.
The crypto market has experienced a 44% drop in market capitalization, but no major risk management failures have occurred.
Other analysts, like Bernstein’s Gautam Chhugani, agree that this bear market is marked by a crisis of confidence rather than structural issues.

Chainlink co-founder Sergey Nazarov has shared his thoughts on the current crypto market downturn. He believes this bear market differs from previous ones due to the absence of major collapses and strong growth in tokenized real-world assets (RWAs). Despite a 44% drop in market capitalization since October, Nazarov remains optimistic about the industry’s future.

No Major Institutional Failures in This Bear Market

Nazarov pointed out that unlike past bear markets, such as those caused by FTX’s collapse or crypto-lending failures in 2022, this downturn has lacked large institutional collapses. “There have been no large risk management failures leading to institutional collapses or widespread systemic risks,” he said in a recent post on X. This absence of major failures shows that the industry can now handle volatility more reliably, according to Nazarov.

Cycles are a normal part of the crypto industry, what is important is what those cycles reveal about how far the industry has progressed and what next stage/trends of adoption/value creation will go on to define the industry.

So far this cycle reveals two key things for me:…

— Sergey Nazarov (@SergeyNazarov) February 9, 2026

The crypto market has experienced sharp declines, with nearly $2 trillion exiting the space. However, the fact that there have been no significant collapses gives hope for more stability in the future. Nazarov’s comments suggest that the market is maturing, with a lower likelihood of widespread panic or failures.

Tokenized Real-World Assets Continue to Grow

The second reason Nazarov sees this bear market differently is the ongoing growth of tokenized RWAs, which have surged by 300% in the last year. This growth, according to RWA.xyz, signals that tokenized real-world assets are gaining value regardless of crypto market fluctuations. Nazarov emphasized that tokenization and on-chain perpetual contracts for traditional commodities offer value beyond mere speculation.

Despite a sharp decline in the price of Chainlink’s LINK token, Nazarov remains confident in the future of RWAs. He highlighted that this innovation continues to accelerate and is becoming an important driver for institutional adoption. As more sophisticated systems are developed for on-chain RWAs, demand for infrastructure will increase, strengthening the market’s foundation.

Bear Market Different from Past Cycles

Other analysts, including Bernstein’s Gautam Chhugani, share Nazarov’s view, stating that the current Bitcoin price drop represents “the weakest Bitcoin bear case in its history.” Chhugani explained that this is “a mere crisis of confidence,” with no major structural issues emerging. The ongoing downturn has largely been influenced by external factors, such as concerns over AI technology and potential liquidity reductions in the financial system.

The lack of large-scale collapses and ongoing innovation in tokenized RWAs sets this bear market apart from previous cycles. Despite the decline in market capitalization, the industry continues to show resilience and growth in key areas, indicating that it is evolving beyond speculative highs and lows.

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