Cryptocurrency investors are increasingly moving capital into stablecoins and tokenized real-world assets to avoid market volatility ahead of U.S. President Donald Trump's tariff announcement on April 2.
Rising Interest in Stablecoins and RWAs
Increasing capital is flowing into stablecoins and the sector of real-world asset tokenization, which refers to financial products and tangible assets such as real estate and fine art minted on the blockchain. "Stablecoins and RWAs continue to see steady inflows of capital as safe havens in the current uncertain market," wrote crypto intelligence platform IntoTheBlock on March 31. However, because these assets reside on-chain, even slight shifts in sentiment can trigger significant price movements, driven by the lower barriers to reallocating capital in real time.
Geopolitical Factors and Market Impact
The flight to safety is mainly attributed to geopolitical tensions and global trade concerns, according to Juan Pellicer, senior research analyst at IntoTheBlock. "Many investors were expecting economic tailwinds following Trump's inauguration, but increased geopolitical tensions, tariffs, and general political uncertainty are making investors more cautious," added Pellicer. The prospect of a global trade war has heightened inflation-related concerns, causing a significant decline in both cryptocurrency and traditional equity markets.
Potential of the Tokenized Asset Market
The RWA market reached a cumulative all-time high of over $17 billion on February 3 and is currently less than 0.5% away from surpassing the $20 billion milestone, according to data from RWA.xyz. Some industry watchers believe that Bitcoin’s lack of upside momentum may drive RWAs to an over $50 billion all-time high before the end of 2025, as their increased liquidity will help them attract a significant share of the $450 trillion global asset market.
Investors continue to seek safer opportunities amid economic uncertainty and the influence of global policies. The market for tokenized assets continues to show the potential for growth, despite short-term sentiment fluctuations.
