Top 3 Trending RWA Protocols Investors Are Following in 2024

Real-world asset tokenization surges with 60% TVL growth since February, driven by investor interest in protocols like Ethena and Pendle
Top 3 Trending RWA Protocols Investors Are Following in 2024

Key Insights

  • Real-world asset tokenization is gaining traction with a 60% TVL increase in RWA protocols since February 2024.

  • As of 2nd May, the total value locked in RWA protocols is more than $6 billion, indicating massive investor interest.

  • Ethena, Ondo Finance, Pendle and Maker RWA are leading the pack with promising growth potential.

  • Active users in the RWA market are on the rise, with some protocols like Pendle driving some of the most massive user engagement.

As well-known crypto niches like Defi, memecoins and AI battle for dominance, other smaller niches like real-world asset (RWAs) cryptos are starting to carve out a niche for themselves.

According to a recent report from Messari, it appears that investors, developers and enthusiasts alike are starting to jump on the RWA bandwagon, as shown by the impressive 60% increase in TVL that RWA protocols have enjoyed between February and Apri 2024.

A Close Look at the Numbers

To begin with, we first need to understand what real-world asset tokenization is.

Real-world asset tokenization simply involves creating a digital version of real-world assets and objects on a blockchain.

Anything from real estate to documents to art to bond-backed stablecoins and even a pair of sneakers can be tokenized.

This niche, as expected, has a lot of potential, explaining its rapid growth over the last two months.

<div class="paragraphs"><p>The RWA total value locked</p></div>

The RWA total value locked

According to data from DefiLlama, as of 2 May, the TVL of the RWA niche is slightly above $6 billion, indicating the growing investor appetite for promising investments.

Moreover, Messari also notes that the RWA sector has expanded by a staggering 700% since the beginning of 2023.

Most Followed RWA Protocols

According to Messari, several protocols have been responsible for carrying the growth of the entire protocol on their backs, including

1. Ethena (ENA)

Ethena leads the pack of RWA tokens according to DefiLlama, with a TVL of $2.32 billion, a 47% TVL growth in the last month, and a current price of $0.7888.

<div class="paragraphs"><p>Ethena in the charts</p></div>

Ethena in the charts

According to the charts, Ethena is currently bearish in the short term but has a chance at a recovery, if a break below $0.7 doesn't occur.

2. Ondo Finance

Ondo finance is also one of the biggest RWA protocols on the market and is second only to Maker RWA.

This protocol has a total value locked of $360 million according to DefiLlama, and a current price of $0.75.

<div class="paragraphs"><p>Ondo’s price action</p></div>

Ondo’s price action

According to the charts, Ondo seems pretty secure in terms of price. The cryptocurrency trades on top of an ascending trendline and appears to be on the verge of a rebound.

As long as a break below the previous low of $0.69 doesn’t occur, we are bound to see a 94% bounce to the upside sooner or later, taking the cryptocurrency up to $1.46.

3. Maker RWA

Maker RWA comes in as the second largest RWA protocol, with a $2.27 billion TVL and a 10% spike in the last month, according to DefiLlama.

Maker RWA is a subsidiary of the Maker protocol, which features Maker DAO.

<div class="paragraphs"><p>Maker RWA’s TVL</p></div>

Maker RWA’s TVL

Data from CoinMarketCap shows that the Maker (MKR) cryptocurrency trades at around $2,700 with a monthly decline of around 30% throughout April.

User Engagement on the Rise

Moreover, data from Dune Analytics shows that the number of active users on the RWA market has been in an uptick since early April, with a figure of around 2,000 daily users.

<div class="paragraphs"><p>The RWA active users</p></div>

The RWA active users

Some of the protocols driving this growth include Propy, Toucan Protocol and Pendle, which is currently leading the Yield farming market.

Overall, the RWA niche appears to be headed nowhere but up, with some of its biggest protocols like Ethena, Ondo Finance and Pendle being relatively new and promising for early investors.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

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