The trend of tokenizing real world assets is gaining momentum, even as the crypto market experiences record volatility.
State of the Tokenized Asset Market
Last week, the crypto market was hit by the DeepSeek AI model launch, sending Bitcoin below $100,000. However, it recovered by week's end. This week, market drops were caused by President Donald Trump's tariff threats. Despite this, the real world assets (RWA) sector has remained resilient to volatility. The total on-chain value of RWAs is now $17.10 billion, reflecting a 10.02% increase over the past 30 days.
Global RWA Market
According to RWA.xyz, the stablecoin market cap reached $213.86 billion, with a 4.84% increase over the last month. The monthly transfer volume fell almost 28% to $3.35 trillion. The largest issuers are Tether, Circle, and Ethena. The institutional funds section tracks tokenized alternatives like hedge funds and venture capital, totaling $410.49 million, up 11.52% over the last 30 days. Private credit data shows active loan values at $11.81 billion with total loans at $21.49 billion. Tokenized commodities have a market cap of $1.14 billion with a monthly transfer volume over $400 million.
RWAs as a Diversification Strategy
Ethereum leads RWA tokenization efforts with 67 assets valued at $3.77 billion. More investors are considering RWAs for portfolio diversification. RWAs include real estate and commodities and often have low correlation with stocks and bonds, making them protective against market downturns and inflation.
The ongoing interest in tokenizing real world assets is driven by their resilience and diversification benefits during volatile market conditions.
