Sergey Nazarov, the CEO of Chainlink believes that real-world assets are set to outperform cryptocurrencies.
Tokenized real-world assets to lead the way
Nazarov thinks that the tokenization of real-world assets is rapidly becoming one of the most influential trends in the crypto space in 2024, and traditional finance, the TradFi could soon become the largest user of DeFi protocols.
This interaction between TradFi and DeFi may lead to clearer and more practical regulations, transforming how these sectors operate.
Nazarov also predicts that the total value of tokenized real-world assets will surpass the combined value of all cryptocurrencies within the next one to three years, and this will literally reshaping the whole industry.
RWAs will encourage the adoption of Central Bank Digital Currencies, CBDCs, which would, in turn, boost on-chain economic activity.
This increase in value flowing into DeFi systems and tokenized assets could drive the broader adoption of blockchain technologies.
But given the fact CBDCs are pure evil, as they’re the weapon of mass financial surveillance and control, we at Kriptoworld don’t know if this is good or bad news. But probably bad.
Growing adoption
Nazarov also predicts that the whole industry will expand with the creation of more blockchains due to lower costs and easier development processes.
He expects these new blockchains to be interconnected, with protocols like Chainlink’s Cross-Chain Interoperability Protocol.
This interconnected blockchain environment could facilitate regulatory compliance and allow more regulated value.
In addition to these developments, Nazarov thinks that governments, particularly in Asia and the Middle East, will increasingly support blockchain technology, as these regions modernize their infrastructure and seek more secure ways to transact.
Real-world assets, the real deal
The trend of tokenizing real-world assets already captured the attention of major institutional investors, including BlackRock, Grayscale, and Franklin Templeton.
The market capitalization of the RWA sector exceeded $10 billion, and this is the clear sign its growing importance in bridging traditional finance with decentralized finance.
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