Real-World Asset (RWA) Protocols Hit New All-Time High of Nearly $8 Billion TVL – The TechLead

Blockchain analytics and research firm Messari has revealed staggering figures indicating a notable growth in the real-world asset (RWA) tokenization industry.

Over the past year, RWA protocols have seen a remarkable resurgence, with their TVL soaring to nearly $8 billion, driven by a market preference for debt-based, high-yield investments.

✍️ @SteimetzKinji provides insights in the latest Messari Pro report: pic.twitter.com/zKgyXcRoMU

— Messari (@MessariCrypto) April 30, 2024

Notably, the total value locked (TVL) across RWA protocols has reached nearly $8 billion, an almost 60% value from February’s values.

Real-World Asset Protocols Close in on $8 Billion TVL Milestone

Messari’s May 1 report showcases the rapid growth in the RWA tokenization sector, reflecting a widespread adoption of the asset class within the crypto sphere. According to the findings, as of April 26, the TVL for RWA protocols surged to almost $8 billion. 

The report noted that this remarkable resurgence was attributed to investors’ preference for debt-based, high-revenue-yield investments. This trend has propelled RWA protocols into the forefront of DeFi innovation, making them notable players in the ever-changing financial sector.

The $8 billion TVL figure includes a wide array of assets and investment vehicles. These include carry trade protocols, commodities, yield-bearing stablecoins, real estate, and securities tokenization protocols. The valuation excludes fiat-backed stablecoins like Tether and USD Coin. 

While Messari’s assessment provides a comprehensive overview of the expanding RWA space, alternative analytics platforms offer slightly different perspectives. DeFiLlama, for instance, reports a marginally lower TVL of $6 billion for RWA protocols.

Nevertheless, both analyses converge on one undeniable truth: RWA protocols are experiencing unprecedented growth. This is evident in TVL surging by a staggering 700% since the dawn of 2023.

Rapid Growth in User Base for RWA Protocols

The TVL is not the only metric that recorded a significant surge this year. Dune Analytics’ report shows a significant rise in the number of active users engaging with RWA protocols, which shows an increase in the popularity of RWA protocols among retail users. 

Platforms such as Toucan, KlimaDAO, and Propy emerge as frontrunners in attracting an expanding active user base. Moreover, tokenized treasuries have emerged as a focal point of investor interest, offering lucrative yields amidst a backdrop of inflationary pressures and rising interest rates.

The report further cites a record of $1.29 billion locked in tokenized U.S. treasuries and bonds, a figure that has surged by 80% since the dawn of 2024. Protocols like Securitize and Ondo are the primary drivers of this significant growth.  

BlackRocks’ newly launched Ethereum-based tokenized fund, tagged USD Institutional Digital Liquidity Fund (BUIDL), has recorded a remarkable performance.

BUIDL recently recorded $375 million in market capitalization, outperforming the Franklin On-chain US government Money Fund which scored $368 in market cap.

Following this performance, BUIDL now ranks as the largest tokenized treasury fund in the world, contributing heavily to the growth of the RWA market.