The 2024 RWA Report: These 3 Points Prove the Rise of Real World Assets in Crypto

Bittime - Real World Assets (RWA) is a digital token that opens up new opportunities for investors and brings significant changes to the crypto world.

Throughout 2023 to early 2024, the leading cryptocurrency data platform, CoinGecko, recently published the Real World Assets (RWA) report. This report highlights the rapid growth of real world assets (RWA) in the crypto space.

This report highlights the rapid growth of real world assets (RWA) in the crypto space, with several important findings.

Dominasi USD-Pegged Stablecoins

• USD-Pegged Stablecoins dominate fiat-backed stablecoins, with 99% of the market share.
• The top three USD stablecoins – Tether (USDT), USD Coin (USDC), and Dai (DAI) – account for 95% of the market.

Check Today's Crypto Market

Commodity Based Token Growth

• The market capitalization of commodity-backed tokens reached $1.1 billion, with gold being the most popular commodity.
• Gold tokens such as Pax Gold (PAXG) and Digix Gold (DGX) are seeing significant growth in adoption.

Real Estate Asset in Blockchain

• Real estate tokenization enables fractional ownership of properties, opening up access for new investors.
• Projects like RealT and Propy are leading the way in real estate tokenization.

Potential of RWA in DeFi

• RWA can increase utility and value in the DeFi ecosystem.
• RWA integration with DeFi protocols opens up new opportunities for lending, derivatives and more.

CoinGecko's report shows that RWAs are playing an increasingly important role in the crypto industry. The integration of traditional assets into blockchain opens up a variety of opportunities to improve market access, liquidity and efficiency.

How To Buy Crypto

Use of USD in Fiat-Backed Stablecoins

Just the top three USD stablecoins account for 95% of the market, with Tether (USDT) worth $96.1 billion, USDC (USDC) at $26.8 billion, and Dai (DAI) at $4.9 billion.

Tether (USDT) continues to dominate with a market share of 71.4%. In contrast, USDC experienced a decline in market share after unwinding during the US banking crisis in March 2023, and has not recovered.

Assets that include other fiat currencies such as Euro Tether (EURT), CNH Tether (CNHT), Mexican Peso Tether (MXNT), EURC (EURC), Euro Stasis (EURS), and BiLira (TRYB)only accounts for 1% of the market.

The market capitalization of stable assets has risen rapidly from just $5.2 billion at the start of 2020, reaching a peak of $150.1 billion in March 2022, before experiencing a gradual decline during the bear market.

However, in 2024, the market capitalization grew by 4.9%, from $128.2 billion at the start of the year, to $134.6 billion on February 1.

Also read: RWA Tokenization on a Large Scale Not Feasible Yet?

Token Market Capitalization Value Has Reached $1.1 billion

Tokens such as XAUT and PAXG dominate as much as 83% of the total market capitalization of tokens that are backed by commodities.

XAUT and PAXG are backed by one troy ounce of physical gold, while KAU and VRO are held at one gram of gold each.

Despite the predominance in precious metals that form the basis for tokens, several tokens backed by other commodities have also been introduced.

For example, the Uranium308 project has launched a token held at the price of 1 pound of the uranium compound U3O8. Even though it can be exchanged, this process must go through strict compliance procedures.

Although the market capitalization of commodity-backed tokens is $1.1 billion, it accounts for only 0.8% of the total market capitalization of fiat-backed stablecoins.

Also read: What Are Real World Assets (RWAs)?

Tokenized Treasury Products Have Grown 641% in 2023-2024

The use of the token by the US Treasury saw a significant increase in popularity during the bear market period, with its market capitalization surging by 641% in 2023, from $114.0 million to $845.0 million.

However, this trend slows down in 2024, with growth of just 1.9% in January, bringing its market capitalization to $861.0 million.

Franklin Templeton is currently the largest issuer of US Treasury tokens, with a token value of $332.0 million issued from the US Government On-Chain Money Fund. This makes it have a market share of more than 38.6%.

Additionally, stablecoin issuers that offer yield such as Mountain Protocol and Ondo Finance are also popular choices.

As of February 2024, Mountain Protocol has issued $154.0 million worth of Mountain Protocol USD (USDM) tokens since its founding in September 2023, while Ondo has an Ondo US Dollar Yield (USDY) market capitalization of $132.4 million.

Most US Treasury tokens are based on Ethereum, which has a market share of 57.5%. However, there are also companies such as Franklin Templeton and Wisdomtree Prime that choose to issue tokens on the Stellar network, which currently dominates with a market share of 39%.

Check Crypto Prices Today: