Onchain real-world assets gain traction amid Bitcoin market uncertainty
Real-world assets (RWAs) are increasingly appealing to investors seeking stable, yield-generating options, particularly as Bitcoin's price stagnates. Following a dip below $100,000 on February 4 amid global trade tensions, more investments may flow into RWAs, according to Alexander Loktev from P2P.org. He anticipates a rise in total value locked (TVL) in RWAs, potentially reaching $50 billion by 2025, driven by significant institutional engagement from entities like BlackRock and JPMorgan. The RWA market recently hit a record high of $17.1 billion with 82,000 asset holders. Marcin Kazmierczak from RedStone emphasizes the transformative potential of RWAs, highlighting that even a small shift from traditional finance could lead to significant growth. Bhaji Illuminati from Centrifuge adds that amid crypto volatility, RWAs, particularly fixed income, serve as a hedge, emphasizing a long-term shift towards investments with real economic value over speculative assets. The RWA market could expand 50-fold by 2030, reaching up to $30 trillion as adoption of blockchain technology by traditional institutions increases.
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