Explosive Growth Witnessed in Real-World Asset Tokenization: TVL Reaches $8 billion
Summary:
The tokenization of real-world assets has seen a remarkable growth over the past year, achieving an all-time high total locked value (TLV) of almost $8 billion. This rise has been driven by a market inclination towards high-yield, debt-centric investments. The TVL in real-world asset protocols has increased about 60% since February, with notable protocol user growth across platforms such as Toucan, KlimaDAO, and Propy. There's also been significant growth in tokenized U.S. Treasuries due to high yields in the current economic climate, with an unprecedented $1.29 billion locked in.
The field of tokenizing real-world assets has experienced an extraordinary expansion over the past year, with the total locked value (TLV) in the sector hitting new highs. Messari, a blockchain research and analytics corporation, mentioned in a May 1 publication to X that the TLV of protocols dealing with real-world assets (RWA) had soared almost $8 billion till April 26. The firm highlighted that the sector's remarkable revival over the past year was fuelled by a market shift towards high-yield, debt-centric investments.
The $8 billion TVL figures does not factor in fiat-backed stablecoins such as Tether (USDT) and USD Coin (USDC) but includes commodities, securities, and real estate tokenization protocols, carry trade protocols, underwriting, and yield-barrier stablecoins. Since February, the TVL in RWA protocols has experienced an almost 60% surge.
DeFiLlama, a decentralized finance analytics platform, suggested a somewhat lesser figure of $6 billion as the combined TVL for RWA protocols. The platform also indicated an extraordinary growth of approximately 700% in protocol TVL since the start of 2023. Of particular note, the total locked value is not the only measurement that has shown substantial growth this year. Since February, there has also been a considerable surge in the number of active users on RWA protocols, indicating a rise in the sector's appeal among minor retail users, as per data from Dune Analytics.
Digital carbon market platforms such as Toucan and KlimaDAO, as well as real estate tokenization protocol Propy, have seen substantial growth in terms of active users. Tokenized Treasuries, too, have shown remarkable growth as yields remain high amid elevated inflation and interest rates in the United States. Right now, there is an unprecedented $1.29 billion locked in tokenized U.S. treasuries and bonds, as per RWA.xyz.
This figure has seen an 80% rise since the beginning of 2024, largely propelled by protocols like Securitize and Ondo. The recent performances of BlackRock's Ethereum-rooted Institutional Digital Liquidity Fund (BUIDL), now the world's largest tokenized treasury fund, and the Franklin OnChain U.S. Government Money Fund (FOBXX), have played a significant role in the growth of this segment of the RWA market.
Published At
5/1/2024 6:37:54 AM
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