Real-world asset tokenization markets have returned to their all-time high in terms of value tokenized onchain as related RWA tokens led crypto market recovery on Feb. 3.
The total value locked onchain for real-world asset (RWA) tokenization markets has reached an all-time high of $17.1 billion, just under the level first tapped in mid-January.
Additionally, TVL for the sector has increased 94% since the same time last year, according to industry analytics platform RWA.xyz.
RWA total value onchain. Source: rwa.xyz
RWA tokens leading markets
It comes as RWA-related digital assets lead the crypto market recovery on Feb. 3, boosted by news that US President Donald Trump has put a temporary hold on tariffs aimed at Canada and Mexico.
While total crypto market capitalization has gained around 7% over the past 24 hours, RWA-related digital assets have been surging even more.
Blockchain oracle provider for real-world assets Chainlink (LINK) saw its native token surge 22% over the past 24 hours to top $21 at the time of writing, recovering from a dump to $17 on Feb. 3.
RWA-focused layer-1 blockchain Mantra (OM) saw its native token surge 23% to reclaim $6, while DeFi platform Ondo Finance (ONDO) skyrocketed almost 27% to reach $1.40 after slumping below $1.10 the previous day, according to CoinGecko.
The native token of Chintai (CHEX), a tokenization platform regulated by the Monetary Authority of Singapore, has surged 38% to reach $0.60, following a fall below $0.40 on Feb. 3.
Other RWA-focused crypto assets such as Algorand (ALGO), XDC Network (XDC), Quant (QNT) and Pendle (PENDLE) are also performing better than the wider market at the time of writing.
Pav Hundal, lead analyst with Australia-based crypto platform Swyftx, told Cointelegraph that “nothing about the market is normal right now, including this rebound,” adding:
“I read this as a speculative rotation by the market. Tokenization has been a bit of a market wallflower recently for reasons that are not easily explicable. But we are talking about projects that create real solutions to support markets like bonds and equities.”
“This market rebound gives us a whole new perspective on the altcoin buffet. All of a sudden investors have a larger menu to choose from,” he said.
Wall Street positive on RWA wave
RWA tokenization market TVL started to skyrocket in early November, coinciding with the crypto market surge. Since then it has gained around 26% or roughly $4 billion.
The lion’s share of onchain value, or almost 70%, is private credit, followed by US Treasury debts representing 21%, according to RWZ.xyz.
Related: Trump-era policies may fuel tokenized real-world assets surge
Meanwhile, Wall Street giants are also betting on the projected $30 trillion RWA tokenization market, wrote Haqq Network co-founder Andrey Kuznetsov on Feb. 1. Asset tokenization is “fundamentally changing financial markets,” he said, adding, “Wall Street titans are sensing the signs and preparing to lead this change.”
Eli Cohen, general counsel of the RWA tokenization platform Centrifuge, expects the Trump administration to publically renounce restrictive policies, further encouraging RWA market growth this year.
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Cointelegraph by Martin Young