The real-world asset (RWA) sector has seen considerable growth over the past year, with an unprecedented increase in market capitalization and trading volume.
Over the past twelve months, the market capitalization of RWA coins has seen an impressive 110% increase, reaching over $17.300 billion. The exponential growth of this market suggests a fundamental transformation in the conception and management of assets within the digital space.
Tokenization of real-world assets, which includes the on-chain digitization of different assets such as real estate and commodities, and even traditional financial instruments such as Treasury bonds, is gaining traction as institutions and investors look to diversify their portfolios and leverage the advantages inherent in blockchain technology. The transparency, efficiency, and accessibility offered by tokenization are paving the way for increased adoption and continued growth in the RWA sector.
Adoption and regulation drive the boom
Two key factors are driving the rise of RWA assets, institutional adoption and regulatory changes. Traditional financial institutions are beginning to recognize the potential of tokenization to improve efficiency, reduce costs, and create new products and services. As more institutions have become involved in this space, their liquidity and credibility have increased, attracting more investors and fostering further growth.
Source: RWAxyz
Furthermore, regulatory changes are providing a clearer and more secure framework for asset tokenization. Regulators around the world are moving towards creating standards and guidelines for the RWA sector, reducing uncertainty and increasing investor confidence. In this regard, the increasingly favorable regulatory environment for RWAs is facilitating the entry of new market participants and promoting innovation and growth.
PREPARE YOUR WALLETPrivate credit and Treasury bonds dominate the market
According to data from analytics platform RWAxyz, the majority of the onchain value of tokenized assets, almost 70% of which, is in private credit, followed by US Treasury bonds, which account for 21% of the overall market.
This steady increase in the total value of RWAs is a clear sign that tokenization is gaining market acceptance and traction. As more assets are tokenized and onboarded to the blockchain, the total value of the sector increases, creating a virtuous cycle of growth and adoption.
Mantra and Injective at the forefront of RWA innovation
Within the realm of cryptocurrencies linked to real-world assets (RWA), Mantra (OM) and Injective (INJ) stand out for their performance and innovative potential.
On the one hand, Mantra, a Layer 1 blockchain specially designed for RWAs, is positioned as the first chain to comply with real-world regulations, focusing on security and compliance. This makes the network an ideal platform for the tokenization of tangible assets and the creation of decentralized financial applications (DeFi).
With a broad ecosystem integrating Mantra Chain, Mantra DEX, and Launchpad, the network enables users to efficiently tokenize, trade, and launch new projects. Additionally, its native token, OM, has seen a significant increase in value, reflecting the growing interest in the platform.
On the other hand, Injective (INJ) is a blockchain designed specifically for decentralized financial applications, allowing the creation of complex financial markets and products such as derivatives and options. Its unique architecture provides speed and scalability, facilitating high transaction volume.
In addition, Injective offers tokenization tools for institutions, promoting the creation of new applications and structured products that ensure compliance, as well as the integration of real-world assets into the blockchain.
Overall, both platforms are contributing to the expansion of the RWA market, which has shown remarkable growth over the past year due to increasing interest from investors and institutions.
Investing in cryptoassets is not fully regulated, may not be suitable for retail investors due to high volatility and there is a risk of losing all invested amounts.
