As Bitcoin (BTC) struggles below the $100,000 mark, onchain real-world assets (RWAs) are attracting increased investor interest. With BTC dipping on Feb. 4 due to escalating global trade war concerns, investors are turning to stable, yield-generating alternatives like tokenized real estate, fine art, and financial products.
RWA Growth Predicted to Hit $50B by 2025
According to Alexander Loktev, Chief Revenue Officer at P2P.org, Bitcoin’s price stagnation could fuel RWA growth, potentially pushing total value locked (TVL) to $50 billion by 2025. He pointed to the involvement of major institutions like BlackRock and JPMorgan, which are increasingly embracing tokenization as a bridge between traditional finance (TradFi) and DeFi.
Recently, RWAs hit an all-time high of $17.1 billion in TVL, with over 82,000 asset holders, as reported by Cointelegraph on Feb. 3.
RWAs Could Capture 1% of Global Asset Market
Marcin Kazmierczak, co-founder of RedStone, highlighted RWA’s potential to tap into the $450 trillion global asset market. Even a 1-2% shift of these assets to blockchain-based RWAs could spur significant growth. He noted that institutional investors manage roughly $100 trillion in global assets, and RWAs’ efficiency, liquidity, and accessibility make them an attractive option.
As Bitcoin’s s future remains uncertain, RWAs are set to play a key role in bridging traditional finance with blockchain innovations.
Source: Cointelegraph