ChainCatcher News, Chainlink co-founder Sergey Nazarov said that despite the total market capitalization of the crypto market falling 44% from its $4.4 trillion all-time high in October, this bear market cycle has two fundamental differences from previous cycles. First, unlike the collapse of crypto lending institutions such as FTX in 2022, this decline has not seen major institutional failures or systemic risks. There have been no large-scale risk management failures leading to institutional collapses or widespread systemic risks, indicating that the industry is now more reliably able to handle volatility. Second, on-chain RWA tokenization value has grown 300% over the past 12 months, proving that this innovation has value independent of speculation and is not closely tied to cryptocurrency prices. Bernstein analyst Gautam Chhugani also said that the current Bitcoin price movement is nothing more than a confidence crisis, and nothing has actually collapsed. BTSE exchange Chief Operating Officer Jeff Mei pointed out that this sell-off is mainly driven by non-crypto catalysts, including concerns about the bursting of the AI tech bubble and the nomination of Kevin Warsh as Federal Reserve Chair, which could lead to tighter liquidity.
Chainlink Co-Founder Highlights Key Differences in Current Crypto Bear Market
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Summary
Chainlink co-founder Sergey Nazarov pointed out two main differences in the current crypto market compared to past bear cycles. First, no major institutional collapses have occurred, unlike in 2022. Second, RWA tokenization value has surged 300% in a year, showing real innovation. A Bernstein analyst noted Bitcoin's price movement reflects a confidence crisis. BTSE COO Jeff Mei linked the sell-off to broader crypto trends, including AI fears and Fed chair nominations.
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