This Crypto Cycle Broke the Pattern: No Systemic Failures, Rising On-Chain Assets

Bitcoin and the rest of the cryptocurrencies can’t shake off the doldrums. Despite the ongoing weakness, this cycle has at least avoided major institutional failures that were seen in past bear markets.

And as investors weather the drawdowns, real-world assets (RWAs) are quietly expanding on-chain regardless of crypto prices.

RWAs Keep Moving On-Chain

In a recent post on X, Chainlink co-founder Sergey Nazarov highlighted that, unlike the previous cycle, which saw the collapse of FTX and multiple lenders during large price drops, this cycle has not produced large systemic risks. He said that crypto systems have managed price and liquidity drawdowns more effectively, thereby creating a more “reliable” environment for both retail and institutional capital.

Nazarov also said that the migration of real-world assets onto blockchains is accelerating independently of cryptocurrency prices. He pointed to ongoing RWA issuance and the growth of on-chain perpetual markets for traditional commodities such as silver, which are rivaling traditional markets, particularly during periods when permissioned trading becomes more restrictive or risky.

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

He identified three trends expected to shape the next stage of crypto adoption. First, on-chain perpetual markets and tokenized real-world assets provide long-term, durable value. Second, institutional adoption is being driven by fundamental technological advantages, including permissionless, always-on DeFi markets. Third, infrastructure supporting RWAs is in increasing demand, as more complex assets require reliable systems for tokenization, data management, and market operation.

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

Developer Activity Across 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) placed fourth and fifth. Chia Network (XCH), VeChain (VET), Lumerin (LMR), Creditcoin (CTC), and Injective (INJ) completed the top ten.

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

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