Real-world asset tokenization protocols have experienced an incredible surge in growth over the past year, resulting in a new all-time high for the total value locked (TVL) in the sector. According to blockchain analytics and research firm Messari, the TVL for real-world asset (RWA) protocols reached nearly $8 billion as of April 26. This remarkable resurgence in RWA protocols has been driven by the market’s preference for high-yield investments based on debt. It’s important to note that the $8 billion TVL figure does not include fiat-backed stablecoins like Tether (USDT) and USD Coin (USDC), but it does encompass carry trade protocols, underwriting, yield-bearing stablecoins, commodities, securities, and real estate tokenization protocols. Since February, the TVL in RWA protocols has increased by approximately 60%.
DeFiLlama, a decentralized finance analytics platform, provides a slightly lower TVL figure of $6 billion for RWA protocols. However, it still demonstrates a monumental growth of around 700% since the beginning of 2023. This impressive increase in TVL is not the only metric experiencing notable growth this year. The number of active users on RWA protocols has also surged since February, indicating a rise in popularity among smaller retail users, according to data from Dune Analytics. Among these protocols, digital carbon market platforms Toucan and KlimaDAO, as well as the real estate tokenization protocol Propy, have witnessed the most significant growth in terms of active users.
Tokenized Treasuries have also experienced substantial growth as yields remain high in an environment of elevated inflation and interest rates in the United States. Currently, there is a record $1.29 billion locked in tokenized U.S. treasuries and bonds, as reported by RWA.xyz. This figure has risen by 80% since the beginning of 2024, primarily due to the contributions of protocols like Securitize and Ondo. The recent performance of BlackRock’s Ethereum-based Institutional Digital Liquidity Fund (BUIDL) and the Franklin OnChain U.S. Government Money Fund (FOBXX) has played a significant role in the growth of this sector within the RWA market.
In conclusion, real-world asset tokenization protocols have experienced explosive growth, leading to a new all-time high in total value locked. The market’s preference for high-yield investments based on debt has been the driving force behind this resurgence. Furthermore, the number of active users on RWA protocols has increased significantly, indicating growing popularity among retail users. Tokenized Treasuries have also seen remarkable growth, driven by high yields and protocols like Securitize and Ondo. Overall, the RWA market is experiencing a period of impressive expansion and innovation.