The Rise of Real World Assets (RWA) in the Cryptocurrency Market
The cryptocurrency market is in a phase of maturation, leading to an increasing number of traditional financial institutions embracing blockchain technology and creating products based on it. In recent years, a separate niche of Real World Assets (RWA) has emerged within the DeFi segment. Tokenized bonds, gold, and real estate have appeared on the cryptocurrency market.
The demand for RWA assets is driven by decentralized protocols, with major financial companies such as Franklin Templeton, Wisdom Tree, and Centrifuge acting as issuers. They acquire physical assets in traditional markets, tokenize them, and distribute them among users within the cryptocurrency network.
Interest in RWA assets started growing after 2021, as investors began focusing on long-term stable investments instead of seeking quick profits. Analysts forecast that the market for tokenized real assets will grow to $10 trillion in the next decade under favorable conditions or up to $3.5 trillion in a bearish scenario.
As of March 2024, the total market capitalization of the sector is estimated at $7.85 billion, with a combined trading volume of RWA tokens reaching $2.02 billion.
Financially, Ondo (ONDO) leads in this category. The cryptocurrency ranks 97th globally in terms of market capitalization, standing at $1.23 billion. The Ondo token is traded on major exchanges such as Bybit, Gate.io, and MEXC, with a daily trading volume totaling $394.57 million.
The native protocol of Ondo is focused on the government bond market. Investors connect their wallets to Ondo Finance, fund them with dollars, and purchase tokens. Bonds can be redeemed in stablecoins or USD if desired.
The second-highest capitalization belongs to the MANTRA project (OM). The asset’s circulating supply is valued at $665.39 million, with a daily trading volume of $173.23 million. The OM token has gained widespread adoption on CEX platforms, offering spot and futures trading on exchanges like Binance, Bitget, and KuCoin.
MANTRA is a vertically integrated blockchain ecosystem offering digital asset trading, capital management services, and launching cryptocurrency projects. The platform caters to retail and institutional clients.
Rounding out the top three in the largest RWA rankings is Polymesh (POLYX). The token’s available supply is valued at $601.37 million, with a total trading volume of $372.59 million. Coin transactions are supported by exchanges such as Binance, HTX, and Gate.io.
Polymesh blockchain is specifically designed for regulated assets, providing an institutional-grade platform for creating and managing security tokens.
The top five largest RWA cryptocurrencies also include OriginTrail (TRAC) at $499.42 million and Centrifuge (CFG) at $455.38 million.