Chainlink (CRYPTO: LINK) co-founder Sergey Nazarov argues that the current crypto downturn is not a replay of previous bear markets. Speaking on X on Tuesday, Nazarov noted that there have been no FTX-style collapses this time and pointed to a persistent wave of tokenized real-world assets that continues to grow despite price declines. Crypto market capitalization has fallen about 44% from its October all-time high of $4.4 trillion, with roughly $2 trillion leaving the space in just four months. He frames the cycle as a test of the industry’s progress: cycles reveal how far the ecosystem has advanced, and this downturn is exposing both resilience and a real-world asset narrative that could outlast speculative pricing.

Key takeaways

• The downturn lacks a single systemic event comparable to FTX-era collapses, suggesting improved risk management across institutions.
• Tokenized real-world assets (RWAs) are expanding on-chain, signaling a use case beyond mere price speculation.
• On-chain perpetuals and asset tokenization offer 24/7 markets, on-chain collateral, and real-time data that could drive institutional adoption.
• Chainlink’s credibility as a backbone for on-chain RWAs remains intact even as the broader market experiences weakness.
• Analysts and industry observers see a bifurcation between crypto prices and the growth trajectory of on-chain RWAs, potentially reshaping the industry’s value proposition.

Tickers mentioned: $BTC, $ETH, $LINK

Sentiment: Neutral

Price impact: Negative. A broad sell-off and outflows have pressured prices and market capitalization, even as on-chain RWA activity trends higher.

Market context: The current cycle unfolds amid a shifting risk environment, macro uncertainty, and ongoing debates about liquidity and regulation that influence both crypto assets and tokenized RWAs.

Why it matters

The argument that the bear market is not a monolithic crash but a spectrum of dynamics matters because it reframes what investors should watch. Nazarov emphasizes that the absence of large, systemic failures this cycle points to improved risk controls and more mature market infrastructure. In practical terms, this could translate into steadier liquidity provision, fewer cascading liquidations, and greater confidence in deploying capital through on-chain channels rather than off-ramp exits.

Central to this narrative is the acceleration of RWA tokenization. According to RWA.xyz, tokenized RWAs on-chain have surged by about 300% over the past 12 months, underscoring a use case that can prosper irrespective of crypto price cycles. The implication is clear: real-world assets—ranging from securitized notes to commodity-linked contracts—are becoming meaningful, on-chain stores of value and collateral concepts, not merely speculative bets. This trend could feed into broader institutional demand, as on-chain mechanisms offer transparency, auditability, and cross-border settlement capabilities that traditional markets take days or weeks to deliver.

Yet the market’s performance remains tethered to macro and sector-specific catalysts. LINK, the token associated with pricing data and oracle services, has faced sustained weakness, trading in bear-market territory after peaking earlier in the cycle. The dynamic illustrates a decoupling: while RWAs push forward in practical utility, the crypto market, including major assets like Bitcoin and Ethereum, can diverge for periods where macro sentiment dominates. In this context, on-chain RWAs could gradually displace some narrative weight away from pure price action toward real-world utility and risk-adjusted capital formation.

Institutional involvement is widely anticipated to hinge on the utility of these on-chain structures. Nazarov argues that the combination of perpetual markets, tokenized assets, and robust on-chain collateral is creating a more resilient foundation for institutions to experiment with crypto-enabled finance. The broader ecosystem benefits from infrastructure upgrades that enable risk management, settlement, and governance in a transparent, programmable environment. The takeaway is not that crypto prices must explode to prove value, but that the underlying systems—the oracles, the data streams, and the contractual primitives—are becoming indispensable to professional finance.

As markets digest these developments, some observers emphasize that the current sell-off is driven by factors outside the crypto sector. Analysts have framed the move as a wider market concern about AI equities, liquidity expectations under a potentially tighter policy regime, and shifts in liquidity leadership. While these external pressures complicate the price narrative, the on-chain RWA ecosystem appears to be advancing on its own trajectory, aligned with broader fintech adoption and cross-chain interoperability goals.

“If these trends continue, I believe what I have been saying for years will happen; on-chain RWAs will surpass cryptocurrency in the total value in our industry, and what our industry is about will fundamentally change.”

Not all bear markets are equal

Industry observers have framed this downturn as potentially less damaging to the core ecosystem than prior cycles. Bernstein analyst Gautam Chhugani described the Bitcoin bear case as historically weak, suggesting that the price action reflects a crisis of confidence rather than a structural breakdown. “The current Bitcoin price action is a mere crisis of confidence. Nothing broke, no skeletons will show up,” the note said. The takeaway is that the macro environment, not just isolated crypto incidents, is weighing on sentiment.

Other voices emphasize a more nuanced picture. For instance, market participants note that macro catalysts—ranging from interest-rate expectations to tech-sector dynamics—have a disproportionate influence on crypto pricing versus on-chain activity. The sell-off has been described as being driven more by non-crypto catalysts than by internal systemic failures within the crypto space, a distinction that could support a faster reacceleration should risk appetite improve and liquidity return.

Market context

Against the backdrop of a 44% drawdown in crypto market cap from the October peak and substantial outflows, the story of RWAs on-chain remains a central pillar of longer-term value propositions in crypto. The dynamic underscores a broader trend toward tokenization and on-chain finance as mainstream infrastructure projects mature. If on-chain RWAs continue to gain traction, the sector could reorient investor attention toward scalable, real-world use cases, rather than relying solely on volatility-driven appetite for purely digital assets.

Why it matters

For builders, the message is clear: investing in robust on-chain infrastructure for RWAs—oracle reliability, settlement speed, and secure collateral mechanisms—could yield enduring demand. For investors, RWAs offer a potential hedge against crypto-price cycles by anchoring value in tangible, off-chain assets. For the market, the continued growth of RWAs may redefine what constitutes “crypto value,” expanding the spectrum of investable instruments and potentially attracting traditional finance players to participate in a more regulated, verifiable on-chain ecosystem.

What to watch next

• Updates from RWA.xyz on on-chain RWAs growth metrics and new asset classes tokenized on-chain.
• Institutional pilots adopting on-chain perpetuals and RWA-backed collateral frameworks.
• Regulatory developments affecting tokenized real-world assets and oracle data provisioning.
• Cross-chain integrations that improve liquidity, settling quickly, and governance for RWAs.

Sources & verification

• Sergey Nazarov’s X post discussing bear-market dynamics and RWAs growth.
• RWA.xyz data showing on-chain RWA value growth (about 300% YoY).
• LINK price/index coverage referenced in market commentary.
• Bernstein note on Bitcoin bear-case context.
• Wemade KRW stablecoin alliance with Chainlink coverage.

RWA momentum and a reshaping crypto market

Chainlink’s foundational role in powering on-chain RWAs remains a consistent thread as the sector charts its next phase. The on-chain RWA narrative is supported by observable growth metrics and a steady flow of products that enable real-world assets to exist, trade, and collateralize on-chain. While price action can swing with global liquidity and risk sentiment, the underlying technology stack—secure oracles, robust data feeds, and programmable contracts—continues to attract the interest of developers, institutions, and asset issuers alike. The broader question is whether on-chain RWAs will eventually carry a larger share of industry value than speculative crypto assets, a shift Nazarov has been vocal about predicting for years.

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Hyperliquid, a decentralized perpetual futures exchange, has quietly overtaken Coinbase in total notional trading volume, marking a major shift in how crypto traders are choosing to trade.

According to data shared on Feb. 10 by on-chain analytics platform Artemis, Hyperliquid processed about $2.6 trillion in notional trading volume in 2025. Coinbase, one of the world’s largest centralized exchanges, recorded around $1.4 trillion over the same period.

Despite Hyperliquid (HYPE) launching only a few years ago and running entirely on-chain, the numbers show that it handled almost twice Coinbase’s trading volume. The milestone has drawn attention across the crypto industry, especially as decentralized platforms continue to challenge traditional exchanges.

How hyperliquid built its lead

Hyperliquid primarily focuses on trading perpetual futures and derivatives on its proprietary Layer 1 blockchain. Active traders seeking quick execution, cheap fees, and direct access to on-chain liquidity have been drawn to it thanks to its focused approach. 

The platform grew quickly throughout 2025. Daily trading occasionally increased to close to $30 billion, while monthly volumes frequently reached hundreds of billions of dollars. The total value locked increased toward $6 billion, while open interest peaked at about $16 billion.

User growth also accelerated. The platform’s active user base grew from about 300,000 to more than 1.4 million in a year, driven largely by word-of-mouth and product performance rather than heavy marketing.

Fees collected on Hyperliquid are partly used for HYPE token buybacks and burns. This model has helped support long-term interest in the ecosystem. As of early 2026, HYPE is up roughly 31.7% on the year and continues to draw increasing attention from traders.

Coinbase operates very differently. Its higher fees, stricter compliance requirements, and fully centralized model for spot and derivatives trading still make it a key entry point for retail users. However, professional traders are increasingly turning their focus toward alternatives that offer more flexibility and lower costs.

Coinbase stock is down about 27.0% so far this year, showing how much pressure traditional crypto companies are under in the current market slowdown.

What this shift means for crypto trading

The growing gap between Hyperliquid and Coinbase reflects a change in how users trade. On-chain platforms offer speed and transparency without requiring users to hand over custody, and more traders are getting comfortable using them.

With Hyperliquid, derivatives traders do not need to trust a central operator with their funds. Smart contracts are used to manage risk, and trades settle on-chain. Users who have been wary of exchanges in the past will find this appealing. 

At the same time, Hyperliquid has placed a strong emphasis on user experience. Its user interface is similar to that of large centralized platforms, which makes it easier for new users to get started. Its growth has largely been attributed to this combination of usability and decentralization.

Momentum has also been boosted by recent developments. The platform is being used to test new products such as outcome-based contracts and limited-risk options. Notable industry figures, like Arthur Hayes, who recently increased the size of his own HYPE holdings, have also taken notice of it. 

But there are still issues. Competition in decentralized derivatives is increasing, and regulators are paying more attention to on-chain trading activity. Aster and Lighter, two rivals, are also expanding their product lines.

TLDR:

• New Phantom Chat feature expands wallet social tools while unresolved address poisoning risks remain active.
• ZachXBT linked a recent 3.5 WBTC loss to spam transactions that copied trusted wallet address patterns.
• Address poisoning exploits wallet history displays and can mislead users during routine transfers.
• Social wallet features may increase exposure to scams if interface protections remain unchanged.

Phantom has announced plans to launch a new social feature called Phantom Chat in 2026. The update aims to transform the Solana wallet into a messaging and discussion hub. 

Soon after the reveal, security concerns surfaced about unresolved wallet vulnerabilities. The warnings focus on address poisoning and the risk of user fund losses.

Phantom Chat feature raises address poisoning concerns

Wu Blockchain reported that Phantom unveiled Phantom Chat as part of its long-term product roadmap. 

The wallet compared its vision to Telegram groups and X communities for crypto discussions. Mockup images showed emoji-based group chats designed for real-time interaction.

Phantom already introduced live chat features through its prediction markets integration with Kalshi in December 2025. The new roadmap suggests a broader move toward social tools inside the wallet. The platform currently serves more than 15 million users across its ecosystem.

On-chain investigator ZachXBT responded to the announcement, warning about unresolved address-poisoning risks. He stated that Phantom still does not filter spam transactions from user histories. This allows look-alike addresses to appear among legitimate transaction records.

According to ZachXBT, one user lost 3.5 WBTC last week after copying the wrong address from recent activity. 

He traced the theft to a transaction created through spam records that mimicked the first characters of a trusted wallet address. He shared the wallet and transaction hashes publicly to document the incident.

Security risks emerge as Phantom expands wallet social tools

Address poisoning occurs when attackers send small transactions from deceptive addresses. These addresses resemble legitimate ones and appear in wallet histories. Users who copy them may unknowingly send funds to attackers.

ZachXBT argued that adding social features without fixing this issue could widen the attack surface. 

He warned that chat-based activity could increase exposure to malicious links and fake addresses. His comments focused on user interface design rather than blockchain flaws.

Phantom’s announcement attracted heavy engagement from memecoin promoters and trading communities. Replies included promotional messages tied to new tokens and groups. This activity highlighted the potential for spam to blend with legitimate discussions.

Wu Blockchain noted that Phantom Chat positions the wallet as a crypto super app combining trading, social interaction, and market sentiment. The move follows a broader trend of wallets adding communication tools. 

Security researchers have stressed that transaction filtering and address verification remain essential for user protection.

Ripple has announced two new partnerships with Figment and Securosys to expand the capabilities of Ripple Custody, its institutional digital asset custody solution.

It is evident that Ripple is currently in an infrastructure arms race to perfect its payment, custody, and staking services for institutions. However, real-world adoption and price have yet to show signs of a breakthrough.

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Ripple Expands Custody Offering With Figment and Securosys Partnerships 

Ripple said the partnerships are designed to simplify procurement and support faster deployment of custody services for regulated institutions. The move comes shortly after Ripple expanded its custody stack through the acquisition of Palisade and the integration of Chainalysis’s compliance tools.

As part of the partnership with Figment, Ripple will introduce staking functionality. This will allow institutional clients to offer staking services without operating their own validator infrastructure. 

The integration is aimed at banks, custodians, and regulated entities seeking exposure to Proof-of-Stake networks while maintaining institutional security and governance standards.

Through Figment’s infrastructure, Ripple Custody clients will be able to support staking on major networks such as Ethereum (ETH) and Solana (SOL). 

“By combining Ripple’s enterprise‑grade custody technology with Figment’s secure, non‑custodial staking platform, we’re giving regulated institutions a way to offer staking rewards to their customers on several blockchain networks,” Ben Spiegelman, VP – Head of Partnerships & Corporate Development at Figment, stated.

Separately, Ripple has partnered with Securosys to strengthen the security layer of Ripple Custody. The collaboration adds support for CyberVault HSM and CloudHSM. This gives institutions the option to deploy HSM-based custody either on premises or in the cloud.

According to Ripple, the Securosys integration is designed to address long-standing challenges around HSM adoption. This includes cost, complexity, and slow procurement processes. 

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Ripple also noted that the addition of Securosys expands the range of supported HSM providers on its custody platform. This provides greater flexibility for institutions operating across multiple regulatory environments.

“By integrating our CyberVault HSM with Ripple Custody, institutions gain an out-of-the-box, enterprise-grade solution that can be deployed quickly, without added complexity, while retaining full control over their cryptographic keys,” Robert Rogenmoser, CEO of Securosys, remarked.

Institutional Focus Fails to Lift XRP as On-Chain Activity Cools

As Ripple continues to strengthen its institutional infrastructure, on-chain metrics from the XRP Ledger indicate that adoption remains moderate. According to data from DeFiLlama, XRPL’s total value locked declined from around $80 million in early January to approximately $49.6 million at press time, reflecting softer DeFi activity on the network.

Stablecoin data points to a similarly gradual pace. Based on DeFiLlama figures, the total stablecoin market capitalization on XRPL stands at roughly $415.85 million, suggesting steady but limited growth.

That said, much of Ripple’s institutional strategy is centered on custody, settlement, and permissioned financial use cases, which may not always be reflected in traditional DeFi metrics such as TVL. 

Notably, so far, the expansion of institutional use cases has had a limited impact on XRP’s market performance. 

The asset is down nearly 32% over the past month, broadly tracking the wider market downturn. At the time of writing, XRP was trading at $1.44, down 0.66% over the past day.

Ethereum co-founder Vitalik Buterin’s latest vision for Ethereum’s intersection with artificial intelligence sees the two working together to improve markets, financial safety and human agency.  

In an X post on Monday, Buterin said his broader vision for the future of artificial intelligence (AI) sees humans being empowered by AI, rather than replaced, though he said the shorter term involves much more “ordinary” ideas.

Buterin pointed to four key areas where Ethereum and AI could intersect in the near future: enabling trustless and/or private interactions with AI, Ethereum becoming an economic layer for AI-to-AI interactions, using AI to fulfill the “mountain man” ideal by verifying everything onchain and improving market and governance efficiency. 

Buterin argued that new tooling and integrations are required for AI use to be truly private, without leaking data or revealing personal identities. 

Private data leaks by large language models (LLMs) have become an increasing area of concern since the rise of AI chatbots. Cointelegraph Magazine highlighted in an article last month that while ChatGPT can give you legal advice, your chat logs can be used against you in court.    

He pointed to the need for tooling to support the use of LLMs locally on personal devices, utilizing zero-knowledge proofs to make API calls anonymously and improving cryptographic tech to verify work from AI, among other things. 

Buterin also envisions AI becoming a user’s middleman to the blockchain, suggesting that AI agents could verify and audit every transaction, interact with decentralized apps and suggest transactions to users. 

AI verification could be a major boon for crypto and other sectors, with increasingly sophisticated scammers on the rise. Address poisoning scams, just one attack vector, have seen a major uptick since December.

“Basically, take the vision that cypherpunk radicals have always dreamed of (don’t trust; verify everything), that has been nonviable in reality because humans are never actually going to verify all the code ourselves. Now, we can finally make that vision happen, with LLMs doing the hard part,” he said. 

Adding to that, Buterin sees AI bots being able to “interact economically” to handle all onchain activity for users and make crypto much more accessible. 

He said bots could be deployed to hire each other, handle API calls and make security deposits. 

“Economies not for the sake of economies, but to enable more decentralized authority,” he said. 

Related: Bitcoin miner Cango sells $305M BTC to cut leverage and fund AI pivot

Finally, Buterin thinks AI can enhance onchain governance and markets if LLMs are used to overcome the limits of human attention and decision-making capacity. 

He said that while things like prediction markets and decentralized governance are “all beautiful in theory,” they are ultimately hampered by “limits to human attention and decision-making power.”