The decentralized finance (DeFi) RWA (real-world asset) sector is showing resilience against the general bearish sentiment in the crypto market. Projects like Ondo Finance, Hashnote USYC, and Cygnus Finance are the main drivers.

At the beginning of August, the total value locked (TVL) in DeFi projects has tumbled by about 25% to break below $75 billion and hit the lowest level since last February. However, the RWA sector has lost less than 10% during the same period to stop at about $5.7 billion, according to DefiLlama.

In fact, the TVL in RWA protocols, excluding the leading Maker RWA, which some believe distorts the metric, is currently at a record high of $3.8 billion.

The RWA resilience is driven by several protocols, including Ondo Finance, the third-largest RWA project by TVL.

We reported at the end of April that Ondo’s TVL hit the $350 million mark. On July 25, the metric rose to a record $575 million, and it currently remains very close to that peak. As explained in our previous post, USDY and OUSG are the flagship products of Ondo, with the former expanding its share over the last few months to 60%.

Hashnote USYC Surges 280% in 3 Months

One of the fastest-growing RWA projects is Hashnote USYC, which rose from less than $50 million in mid-May to a record $177 million at the end of July. It is maintaining close to the recent peak, giving a boost to the RWA sector.

USYC is the tokenized version of Hashnote’s Short Duration Yield Fund (SDYF), which invests in short-term US Treasury Bills.

Cygnus Finance Jumps to Record $85.6 Million

Another major RWA project making waves is Cygnus Finance, whose TVL increased from $31 million in mid-July to $85.66 million today.

Cygnus is the first RWA protocol on Base, an Ethereum layer 2 network. It also supports Ton.

The protocol enables users to deposit USDC and USDT to mint equivalent yield-bearing tokens.

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The post DeFi RWA Sector Withstands Crypto Bearish Sentiment appeared first on NFTgators .