Recently, BlackRock’s significant investments into the Real World Asset (RWA) narrative have sparked widespread attention. The market is buzzing, and everyone is rushing to learn more about this emerging trend. Naturally, I’ve also delved deep into the topic, and here’s my take on why RWA could be the next big thing in the crypto world. Plus, I’ve highlighted some promising RWA projects you’ll want to keep an eye on.
We’re Still Early
Most RWA projects aim to tokenize real-world, tangible assets and bring them onto the blockchain. Just hearing the definition of RWA, doesn’t it sound like a “perfect fit” for blockchain?
Let’s take a look at some data-backed tools like Dune and Sosovalue, which show RWA projects performing even better than other hot narratives, such as AI. Despite this, the market cap of RWA tokens is only around $8 billion, according to CoinGecko. This means one thing: We’re still early.
The BlackRock Effect
BlackRock’s announcement of a $100 million tokenized asset fund on Ethereum is likely just the beginning. For RWA to truly take off and pump the market during a bull run, it needs even more stories to showcase its upside potential.
Think back to June last year when BlackRock filed for a Bitcoin ETF. Soon after, other major funds like Fidelity and Grayscale followed suit, applying for their own ETFs. At the time, the media was flooded with articles, and experts shared their insights everywhere.
- Media and KOLs shaped the narrative.
- Public sentiment grew, fueling mass belief in Bitcoin’s future.
Retail investors poured into BTC because of the ETF news. So, the question is: Where will institutional money flow next? And which tokens will retail investors rush to buy? My bet is on RWA.
If history repeats itself, we may be in for another major opportunity with RWA tokens.
Promising RWA Projects to Watch
Here are some of the top RWA projects you should keep an eye on:
- Ondo Finance (ONDO):
- Ondo provides liquidity solutions for institutions like ETFs or U.S. short-term treasuries. According to DeFiLlama, it currently boasts over $221 million in TVL.
- Avalanche (AVAX):
- Avalanche has committed a $50 million fund to tokenizing real-world assets. It has collaborations with Citibank, WisdomTree, and JP Morgan, and its Subnet is focused on tokenizing private funds.
- LandX (LNDX):
- A lower-market-cap project compared to the billion-dollar giants mentioned above, LandX is a platform for agricultural land investments. It’s a unique product with much potential, and I’ll dive deeper into it in a separate post. Plus, only 6% of its tokens are unlocked.
- Parcl:
- Built on Solana, Parcl offers derivatives trading and is currently running its third season, with no airdrop snapshot yet. This could be a prime opportunity for those looking to get in early.
Conclusion
The RWA narrative is gaining momentum, and with BlackRock’s involvement, it’s only a matter of time before more investors turn their attention to this emerging sector. If history is any indicator, RWA tokens could become the next big thing in crypto.
With solid projects like Ondo Finance, Avalanche, LandX, and Parcl, now is the time to explore this narrative and position yourself ahead of the curve.
Sources:
- Dune
- DeFiLlama
- CoinGecko
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