The real scale of total assets in the RWA sector
In institutional research reports, the trillion-dollar scale RWA sector, excluding stablecoin projects and only including private credit, US Treasury bonds, commodities, institutional alternative funds, non-US bonds, corporate bonds, and stocks in the strict sense of RWA, had a total asset scale of $13.55B as of December 1.
The total asset scale of stablecoin projects is $192.78B.
Of course, the RWA enthusiasts can argue that ~90% of the underlying assets of USDT/USDC stablecoins are short-term US Treasury bonds, and a large portion of the underlying assets of the decentralized stablecoin USDS (formerly DAI) is also short-term US Treasury bonds. Their mechanisms are similar to USDY from ONDO and deUSD from Elixir, except that the issuers of USDT/USDC, Tether and Circle, do not allocate the underlying asset returns from US Treasury bonds to users.
Personally, I believe that there is no problem with the logic of this statement, so in a broad sense, the real scale of total assets in the RWA sector should be $206.33B, which has already achieved 20% of the trillion-dollar scale target.
Image source: RWA.xyz
Asset scale distribution of the RWA sector
At the beginning of 2023, when Professor Meng Yan @myanTokenGeek initiated a major discussion on RWA in China, in the then low-interest on-chain environment (stablecoin interest on $AAVE was long-term below 2%), tokenization of US Treasury bonds was the hot topic in the RWA sector, occupying an absolute market share in the RWA market.
But in less than two years, the market landscape of the RWA sector has undergone a huge change.
With Figure Markets joining the private credit sub-industry, which raised $60 million in Series A financing led by Jump Crypto, Pantera Capital, and Lightspeed Faction, its business scale has rapidly expanded this year, not only offsetting the decline in businesses of the same industry like Maple, Centrifuge, Goldfinch, Curve, TrueFi, but also pulling the scale of private credit to $9.40B, far exceeding the total asset scale of tokenized US Treasury bonds at $2.60B.
Image source: RWA.xyz
RWA asset issuance situation in 2024
From the attached diagram, it can be seen that the top three monthly RWA asset issuance scales in 2024 are stablecoins, tokenized US Treasury bonds, and private credit.
In other words, if you want to find the most growth-oriented investment targets in the RWA sector, you should look within these three sub-sectors.
Image source: RWA.xyz
Chain distribution of RWA assets
As expected, Ethereum wins with a market share of 76.51%.
Stellar ranks second with 9 RWA products totaling $245.58M with the help of WisdomTree.
Polygon ranks third due to the native stablecoin assets and tokenized US Treasury bond assets issued by BlackRock and Franklin Templeton that accumulated in the previous cycle.
Solana ranks fourth, with RWA categories primarily consisting of USDC and USDT, in addition to Ondo's $107.57M USDY. During this period, Solana has achieved great success on the To C level but needs to work hard on the To B side.
Avalanche is very active in RWA and has initiated and organized the RWA Alliance. Therefore, its on-chain RWA categories and issuing entities are very rich, but limited by the unsatisfactory development of the Avalanche chain this week, the overall scale is only $97.87M.
Image source: RWA.xyz
Investment targets in the RWA sector
Beta targets: Leading sub-sector players, such as SKY (formerly MakerDAO) in the tokenized US Treasury bond industry, Ondo Finance, Figure Markets in the private credit industry, Spiko in non-US bond tokenization, and Securitize in institutional funds, etc.
Alpha targets: Elixir, which issues the decentralized stablecoin deUSD based on tokenized US Treasury bonds in collaboration with BlackRock, the pricing market for RWA stablecoins Curve, and the private credit scale in recovery growth like Goldfish, etc.
Of course, Alpha targets are not limited to the above few, the search principle still has to be 'disruptive innovation' or 'exponential growth'.
[Disclaimer] The market has risks, and investment should be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. Investing based on this is at your own risk.
This article is authorized for reprint from: (Foresight News)
Original editor: NingNing
The article 'Analysis of RWA Development Trends! Asset scale reaches $100 billion, 8 potential projects to watch' was first published on 'Crypto City'.
