Over the past year, real-world asset tokenization protocols have grown significantly, reaching an all-time high in total value locked (TVL) according to a May 1 post by Messari, a blockchain analytics and research firm. According to the report, as of April 26, TVL for real-world asset (RWA) protocols surged to nearly $8 billion.
The analytics firm shared that the surge is attributed to a resurgence in RWA protocols, with market preference shifting towards debt-based, high-yield investments.
The $8 billion TVL excludes fiat-backed stablecoins like Tether (USDT) and USD Coin (USDC) and includes carry trade protocols, underwriting, yield-bearing stablecoins, commodities, securities, and real estate tokenization protocols. Since February, TVL in RWA protocols has increased by almost 60%.
DeFiLlama, a decentralized finance analytics platform, provided a slightly lower TVL figure of $6 billion for RWA protocols, showing a monumental growth of around 700% since the beginning of 2023.
Additionally, the number of active users on RWA protocols has surged since February, indicating increased popularity among smaller retail users, according to data from Dune Analytics. This growth in TVL and user base highlights the expanding role of RWA protocols in the decentralized finance ecosystem.
The growth of the RWA market segment has been significantly influenced by the recent performance of BlackRock’s Ethereum-based BUIDL, now recognized as the world’s largest tokenized treasury fund, and the Franklin OnChain U.S. Government Money Fund (FOBXX).
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