The cryptocurrency market is perpetually in flux, with emerging narratives often shifting investor focus and capital flows. Recently, the Real World Assets (RWA) narrative has resurfaced, highlighting the potential for tangible asset tokenization. This renewed interest suggests that certain RWA tokens might see substantial gains in the next altcoin bull market.
RWA: Evolving from Experimental to Mainstream Relevance
Real World Assets represent a niche but increasingly influential trend in the crypto space. As of now, there are over 117,586 holders of Ethereum-based tokens tied to real-world assets. RWAs are used for various experimental purposes, such as merchandise tokenization and for revitalizing older platforms with fresh utility.
In the anticipated altcoin bull market, RWA-linked assets are likely to ascend into the ranks of blue-chip tokens. Many of these projects are in their infancy, yet they are already garnering significant attention. Different RWA projects emphasize varying aspects, from the inherent value of their underlying assets to their role as platforms for tokenizing third-party assets. Some also leverage the hype-driven approach of meme tokens to attract interest.
June marked a notable acceleration in the RWA trend, making it a leading narrative within the crypto community. Existing DeFi projects might integrate tokenization with their current liquidity models, primarily based on dollar-pegged stablecoins, further enhancing the appeal of RWAs.
Leading RWA Tokens to Watch
Several RWA tokens with highly liquid pairs on centralized exchanges are expected to spearhead the trend, potentially seeing significant value growth by 2025. The narrative received a major boost from BlackRock’s decision to explore a tokenized money market fund, signaling institutional interest.
Key RWA projects attempting to replicate traditional finance are gaining attention. In the realm of tokenized real estate, Elysia (ELFI), Labs Group (LABS), and Propy (PRO) are active contenders. Securitization efforts are seen in projects like StrikeX (STRX) and Centrifuge (wCFG). Tokenizing equities and other financial instruments are the focus for Maple Finance (MPL), TrueFi (TRU), and Ondo Finance (ONDO). Goldfinch (GFI) has also shown positive performance, adding to its appeal.
The CoinMarketCap list of RWA assets features dominant blue chips and even Layer 2 (L2) and Layer 1 (L1) platforms offering tokenization solutions. Ondo Finance stands out by providing targeted tokenization for the financial sector, aiming for true tokenization where assets can be traded and settled directly on the blockchain.
Other projects offer tokenized representations of off-chain asset pools, creating synthetic markets that mirror traditional asset values. For these purposes, Chainlink provides essential pricing data, enabling simulated trading of stocks and commodities on the blockchain.
Promising RWA Projects for 2024
Mantra (OM) is emerging as a standout project for 2024. In collaboration with Ondo, Mantra offers direct access to tokenized financial assets and is actively building its presence on social media. This has helped Mantra grow its community and reach.
Mantra and the Ondo Foundation are working to incentivize a multi-chain USDY vault, allowing USDC contributors to earn yields from low-risk, short-term US Treasuries. The OM token is gaining traction, with the upcoming launch of the Mantra mainnet generating significant buzz.
Mantra combines the accessibility of DeFi with investment opportunities in low-risk, low-yield assets, making it an attractive option for investors.
Currently, OM is trading near its all-time high, reflecting strong market confidence. As a top RWA asset listed on Binance, OM is well-positioned to benefit from increased trading volumes.
The momentum generated by Mantra is likely to impact its competitors, including Manta Network, Polymesh, Injective, Fetch.ai, Reserve Rights, and Centrifuge. As the RWA narrative continues to gain momentum, these projects are also expected to perform well, making them key tokens to watch in the forthcoming altcoin bull market.
If you need to learn more about Real World Asset tokens, Kenson Investments can help. Get in touch with them.
