Chainlink co-founder Sergey Nazarov argues that the recent cryptocurrency market downturn is unlike previous events. He notes that while the market has been declining, there hasn't been a collapse of any businesses in the industry, and real-world crypto assets have continued to grow significantly amidst the cryptocurrency market's decline.
Market data shows that the total cryptocurrency market Capital has fallen by approximately 44% from its all-time peak of $4.4 trillion set in October 2025, equivalent to nearly $2 trillion leaving the market in just four months. However, Nazarov argues that two key factors are making this downturn cycle different from previous ones.
Firstly, unlike previous bear markets, which were one of the triggers leading to the collapse of FTX and the 2022 cryptocurrency lending crisis, the current correction has not resulted in the bankruptcy of major institutions.
According to him, this shows that the industry's risk management capabilities and resilience have improved, with no widespread systemic failures occurring.
Secondly, the Tokenize of real assets and the development of decentralized perpetual contracts (perps) remain strong despite price volatility. Nazarov argues that this demonstrates that on- chain innovations are creating real value, not just speculative gains. According to data from RWA.xyz, the total value of tokenized real assets has increased by approximately 300% in the last 12 months.
He noted that this trend suggests that tokenized real-world assets have the potential to grow independently of cryptocurrency price fluctuations, thanks to inherent values such as transparency, traceability, and continuous trading.
He predicted that if the trend continues, the total value of real-world tokenized assets could surpass that of traditional cryptocurrencies, thereby creating a fundamental shift for the entire industry.
This view was also echoed by Bernstein analyst Gautam Chhugani in a report published on Monday, where he stated that the market is experiencing “the weakest Bitcoin bear cycle in history.” According to the analysis team, the current price volatility primarily reflects a crisis of confidence, rather than a breakdown of the core foundations.
Meanwhile, Jeff Mei, CEO of the BTSE exchange, argues that this sell-off is different because it largely stems from factors outside the cryptocurrency market.
These factors include concerns about a potential cooling of the AI wave, which could lead to a correction in tech stocks, along with the appointment of Kevin Warsh as Chairman of the Federal Reserve, a move many investors believe could tighten liquidation in the financial system.
