- Growth of the Tokenized Assets Market
- Ethereum Development Scenario
- Highlighted Crypto News of the Day
The tokenized real-world assets (RWAs) are gaining traction as their market value might reach $30 trillion by 2030. Currently, a realistic target is observed around $1.3 trillion in tokenized traditional assets.
Growth of the Tokenized Assets Market
The chief crypto analyst at Real Vision, Jamie Coutts, suggests that Wall Street estimates $10 to $30 trillion in traditional assets will be tokenized over the next 5-10 years. The second-largest asset manager, BlackRock, has $10 trillion in AUM, making this time frame quite optimistic. However, if the current 2-year CAGR of 121% continues, the $1.3 trillion target seems attainable. To reach $30 trillion, exponential growth and adoption across several asset classes will be required. The market for tokenized RWAs has a limited number of assets that have been tokenized and adopted by investors. Tokenizing assets is the process of issuing security tokens representing real tradable assets such as real estate, bonds, art, and stocks. Moreover, Standard Chartered Bank and Synpulse estimate that tokenized RWAs could reach $30.1 trillion by 2034. In 2023, $130 trillion in volume traded on S&P 500 stocks, with an average $40 trillion market cap, leading to a turnover ratio of around 317%.
Ethereum Development Scenario
Value accumulation on Ethereum for early TradFi asset issuers can be challenging. This is due to how much market share Layer-2 networks will capture compared to the core Ethereum network. Layer-2 solutions can take a major share of the revenue, which can be as high as 95-99%, impacting the settlement costs for Ethereum. Conversely, L2 networks could generate substantial income, and non-permissioned L2s could enable a fee switch, allowing tokenholders to benefit. Ethereum L1 remains the leading platform in asset tokenization in traditional finance. BlackRock and Franklin Templeton have secured over $900 million of the total $1.4 billion in tokenized US Treasuries.
Highlighted Crypto News of the Day
Ethereum dropped over 5%, and the price slipped to $2,520.
Tokenized assets continue to gain popularity, with predictions suggesting their market value could reach $30 trillion in the coming years. However, achieving such figures will require significant adoption of tokenization and exponential growth.
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