- A crypto analyst predicts $30 trillion for tokenized RWAs by 2030.
- Ethereum dropped over 5%, and the price slipped to $2,520.
The tokenized real-world assets (RWAs) gained traction as their market value prediction might target $30 trillion by 2030. A realistic target is observed around $1.3 trillion in tokenized traditional assets.
Jamie Coutts, the chief crypto analyst at Real Vision, suggests that Wall Street estimates $10 to $30 trillion in traditional assets will be tokenized over the next 5-10 years. The second-largest asset manager, BlackRock has $10 trillion in AUM, thus the time frame seems overly optimistic. Whereas, if the current 2-year CAGR of 121% continues, the $1.3 trillion target seems attainable. The $30 trillion requires exponential growth and adoption across several asset classes.
The market of tokenized RWAs has a limited number of assets that have been tokenized and adopted by investors. Meanwhile, tokenizing assets is the process of issuing security tokens, representing the real tradable assets. These tokens include real estate and bonds to art and stocks.
Besides, Standard Chartered Bank and Synpulse estimated that tokenized RWAs could reach $30.1 trillion by 2034. In 2023, $130 trillion in volume traded on S&P 500 stocks, with an average $40 trillion market cap, leading to a turnover ratio of around 317%.
Scenario of Ethereum
The value accumulation on Ethereum, for early TradFi asset issuers can be challenging. This occurs as to how much market share Layer-2 networks will capture compared to the value the core Ethereum network captures.
Layer-2 solutions take a major share of the revenue that can even be as high as 95-99%, taking the settlement costs for Ethereum. On the contrary, L2s would generate substantial income, and non-permissioned L2s could enable a fee switch, allowing tokenholders to benefit.
Ethereum L1, as the leading platform in asset tokenization in traditional finance with BlackRock and Franklin Templeton secured over $900 million worth of the total $1.4 billion in tokenized US Treasuries.
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