Real World Assets (RWA) represent a fresh sector with significant potential for investors. Why have RWA crypto projects become so explosive recently? Let’s dive into the top RWA coins driving this vibrant market with FMCPAY!
1. Why are RWA coins trending?
March 21, 2024 marked an unexpected surge as the market turned green, signaling the resurgence of Real World Asset (RWA Coin) cryptocurrencies.
The surge was triggered by BlackRock, the world’s largest asset manager, announcing the creation of a new investment fund called the “USD Digital Liquidity Fund.” BlackRock’s partnership with asset tokenization company Securitize highlights the potential for growth in real-world asset tokenization and offers promising investment prospects for the future.
Data from CoinGecko shows that the total market cap of the RWA coin market jumped from $4.2 billion to $5.7 billion in March 2024, maintaining its growth momentum to exceed $7 billion by July 2024.
>> Read more: What is RWA Crypto – The Future of Investment or not? <<
2. Top RWA coins you should consider investing in
Here are the most prominent projects leading the RWA trend that you should check out. Let’s take a look!
#1 top RWA coin: AVAX (Avalanche)
Avalanche is a leading blockchain platform for smart contracts, recognized for its high scalability, fast transaction speed, and low costs. The platform is making notable strides in the Real World Asset (RWA) sector, demonstrating significant potential for growth and innovation.
Avalanche’s unique subnet architecture enables it to process thousands of transactions per second, effectively addressing the needs of real asset tokenization. This capability ensures efficient handling of high transaction volumes and supports the broader adoption of RWAs.
The platform also features a vibrant ecosystem of decentralized applications (dApps) with key RWA projects such as Securitize, Centrifuge, and RealT. These projects are attracting substantial interest from investors and enterprises. Additionally, Avalanche’s partnerships with major organizations like Deloitte, PwC, and Chainlink are advancing RWA applications across various sectors, including finance, real estate, and supply chains.
#2 top RWA coin: LINK (Chainlink)
Chainlink is not a standalone blockchain platform like Avalanche, but it plays a crucial role in the RWA ecosystem. Chainlink is renowned for providing Oracles, which offer reliable real-world data to smart contracts on the blockchain.
One of the most notable features is that Chainlink’s Oracles ensures the accurate and tamper-proof updating of real-world asset data, which is essential for the RWA coin market.
Chainlink supports connectivity with various asset types, from stocks and bonds to real estate and commodities, catering to the diverse needs of RWA coin investors.
#3 top RWA coin: MKR (Maker)
Maker (MKR) serves as the governance token for MakerDAO and the Maker Protocol, which allows their users to collateralize assets like ETH to create a stablecoin named DAI for DeFi applications. As one of Ethereum’s oldest and most prominent DeFi protocols, Maker has made notable strides in integrating RWA into its ecosystem.
In March 2023, MakerDAO proposed acquiring an additional $750 million in U.S. corporate bonds to capitalize on the profitability of Real World Assets. Although RWAs represent only about 12% of the assets under MakerDAO’s management, they have generated over 50% of the project’s total revenue, highlighting the significant potential of RWA coins.
#4 top RWA coin: ONDO (Ondo)
Ondo Finance is a leader in RWA tokenization, offering solutions to make real-world assets tradable and liquid on blockchains. Its notable products include OUSG, the first tokenized US Treasuries, and Flux Finance, which leverages these Treasuries as collateral in DeFi lending.
The company recently launched Ondo Global Markets (Ondo GM) and formed partnerships with Aptos and Sui to improve RWA coins liquidity. By March 2024, Ondo aims to transfer $95 million to BlackRock’s tokenized fund BUIDL, increasing OUSG’s functionality within the crypto space.
#5 top RWA coin: OM (MANTRA)
MANTRA is a security-focused Layer 1 blockchain designed to meet real-world regulatory requirements. It specializes in tokenizing precious metals like gold and silver, providing a stable value for crypto investors.
Built with the Cosmos SDK, MANTRA offers smooth interaction and ensures efficient cross-chain operations. Capable of processing up to 10,000 transactions per second, MANTRA is well-suited for enterprise-level applications and high-frequency trading.
Additionally, users can participate in staking RWA assets or OM tokens to earn rewards or take part in voting on decisions related to the future of the protocol.
#6 top RWA coin: Pendle (PENDLE)
Pendle is a DeFi protocol on the Ethereum platform that offers an innovative approach to accessing the RWA market. Unlike many competitors, Pendle doesn’t directly tokenize assets but instead focuses on providing options contracts for potential RWAs.
Users can trade “call options” and “put options” on RWA assets through Pendle, allowing for diverse investment strategies based on market conditions.
Compared to directly purchasing RWA assets, using Pendle’s options can be more cost-effective, especially for speculative strategies. Additionally, Pendle leverages DeFi market liquidity, ensuring easy trading of options contracts.
#7 top RWA coin: SNX (Synthetix)
Synthetix (SNX) is a decentralized derivatives protocol on the Optimism platform, leading the way in offering synthetic assets (Synths) pegged to real-world assets (RWAs). Instead of directly tokenizing physical assets, Synthetix creates Synths such as sAUD (pegged to USD), sEUR (pegged to EUR), and sBTC (pegged to BTC).
SNX token serves as collateral: users must lock SNX to create and trade Synths, ensuring the stability of Synth prices and maintaining market liquidity. Additionally, SNX holders participate in governance, having the ability to vote on changes to the Synthetix protocol.
Conclusion
RWA coins represent a major innovation in the blockchain realm, merging the stability of real-world assets with the advantages of blockchain technology.
Do you think they are a worthwhile investment? Stay tuned to FMCPAY for more engaging crypto insights.