The market for tokenized real-world assets (RWAs) has surged back to its all-time high, driven by a strong rally in RWA-related tokens on February 3.
According to industry data from RWA.xyz, the total value locked (TVL) in tokenized RWAs has climbed to $17.1 billion, matching levels first seen in mid-January. Compared to the same period last year, this represents a 94% increase, signaling growing investor confidence in the sector.
RWA Tokens Drive Market Rebound
The broader cryptocurrency market experienced a notable recovery on February 3, with RWA-linked digital assets leading the charge. The rally was partly fueled by the news that U.S. President Donald Trump had placed a temporary hold on tariffs targeting Canada and Mexico.
Over the past 24 hours, the total crypto market cap has risen by approximately 7%, but RWA tokens have outpaced these gains significantly.
- Chainlink (LINK), a key blockchain oracle provider for real-world assets, surged 22% to surpass $21, rebounding sharply from a dip to $17 earlier that day.
- Mantra (OM), a layer-1 blockchain focused on RWA applications, climbed 23%, reclaiming the $6 mark.
- Ondo Finance (ONDO), a DeFi platform specializing in RWAs, skyrocketed nearly 27%, rising from below $1.10 to reach $1.40, according to CoinGecko data.
- Chintai (CHEX), a tokenization platform regulated by Singapore’s Monetary Authority, saw its token spike 38% to hit $0.60 after previously falling below $0.40.
Other RWA-centric assets, including Algorand (ALGO), XDC Network (XDC), Quant (QNT), and Pendle (PENDLE), are also outperforming the broader crypto market as of writing.
Pav Hundal, lead analyst at Australia-based crypto firm Swyftx, noted that the current market conditions are anything but typical, stating:
“I see this as a speculative shift in the market. Tokenization has been overlooked recently for no clear reason, yet these projects offer real-world solutions for traditional financial sectors like bonds and equities.”
He added, “With this rebound, investors now have a much broader selection of altcoins to consider.”
Wall Street Eyes RWA Boom
The surge in RWA tokenization TVL began in early November, aligning with the overall crypto market rally. Since then, the sector has grown by approximately 26%, adding roughly $4 billion in value.
Private credit dominates onchain RWA value, accounting for nearly 70% of the market, followed by tokenized U.S. Treasury securities at 21%, according to RWA.xyz data.
Meanwhile, major financial institutions are increasingly betting on the expanding RWA tokenization market, which is projected to reach $30 trillion. On February 1, Haqq Network co-founder Andrey Kuznetsov highlighted that asset tokenization is fundamentally reshaping financial markets, adding, “Wall Street heavyweights recognize the potential and are gearing up to take the lead.”
Additionally, Eli Cohen, general counsel for RWA tokenization platform Centrifuge, suggested that the Trump administration may further relax restrictive policies, fostering even stronger growth in the RWA sector throughout the year.
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