Chainlink co-founder Sergey Nazarov stated that the RWA segment will eventually surpass the crypto market in total value. He believes the current cycle showcases the industry's maturity and its readiness for integration with traditional finance (TradFi).

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

Nazarov highlighted two key observations regarding the current market state.

First, there have been no 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 withstood price drops without global upheaval. The industry's ability to endure liquidity downturns makes it more reliable for institutional capital.

Second, the migration of real assets to blockchain is accelerating regardless of Bitcoin's price. Nazarov noted that on-chain derivative markets for traditional commodities (like silver) are already competing with conventional platforms.

The Chainlink head identified three trends that will reshape the financial landscape:

  1. Value of Tokenization. There is growing demand for 24/7 markets and transparent collateral management.
  2. Institutional Adoption. Major players will enter DeFi for technological advantages and liquidity access, not just for speculation.
  3. Need for Infrastructure. The more complex the RWA, the more systems are needed to support them.

Nazarov emphasized the importance of interoperability in this process. Chainlink holds over 70% of the DeFi market in data provision and collaborates with providers like S&P and ICE. He identified process synchronization—coordinating between blockchains, off-chain systems, and AI via the Chainlink Runtime Environment—as a key element for development.

"If these trends continue, on-chain RWA will surpass cryptocurrencies in total value. This will fundamentally change the nature of our industry. Cryptocurrencies will grow as an asset class, but it will be RWA that brings the technology into the mainstream," concluded Nazarov.

In January, ARK Invest analysts predicted that the market for tokenizing real-world assets could exceed $11 trillion.