May 7, 2024
RWA Protocols Near $8B TVL Messari
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RWA Protocols Near $8B TVL: Messari

According to Messari, Real-World Asset RWA protocols tokenization has experienced a notable surge in activity over the past year, resulting in a new all-time high in total value locked (TVL) across the sector. As of April 26, TVL for these protocols approached nearly $8 billion.

Remarkable Resurgence and Market Trends

Messari highlighted the remarkable resurgence of RWA protocols, attributing the sector’s growth to a market preference for debt-based, high-yield investments. The $8 billion TVL excludes fiat-backed stablecoins like Tether (USDT) and USD Coin (USDC), encompassing various protocols such as carry trade protocols, underwriting, yield-bearing stablecoins, commodities, securities, and real estate tokenization.

RWA protocol TVL has grown 60% since February. Source: Messari

Impressive Growth Metrics

The TVL in RWA protocols has surged by almost 60% since February, reaching unprecedented levels. Decentralized finance analytics platform DeFiLlama reported a slightly lower TVL figure of $6 billion but still highlighted a monumental growth rate of around 700% since the beginning of 2023. Notably, active user numbers on RWA protocols have also increased significantly, indicating growing popularity among retail users.

Tokenized Treasuries and Bond Markets

Tokenized Treasuries have witnessed substantial growth, with a record $1.29 billion locked in tokenized U.S. treasuries and bonds, according to RWA.xyz. This represents an 80% surge since the beginning of 2024, primarily driven by 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 further contributed to the growth of this segment within the RWA market.

Carbon markets and real estate have seen the most user growth in the RWA sector: Source: Dune Analytics

Overall, the surge in TVL and active user numbers reflects the increasing adoption and interest in real-world asset tokenization protocols. As the market continues to evolve, it is expected that these protocols will play an increasingly significant role in the broader financial landscape, offering new investment opportunities and avenues for asset management.

Image by freepik

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