The market is yet to show a clear direction, and the vast majority of cryptocurrencies are oscillating within a wide range as this month’s earlier euphoria continues dissipating.
TL;DR…
- Market Volatility & BTC Rally: Last week saw choppy market action with Bitcoin spiking to $99K before settling around $96.4K, but overall it’s up ~3.4%.
- RWA Sector Surge: RWA tokens rebound from last week's dip, with sector mcap jumping from $56.4B to $65.3B; major gains in tokens like $RSR (56.8%) and $TOKEN (45.2%).
- Mixed Sector Performance: Despite gains, the RWA sector lags behind CEX and AI tokens in mcap-weighted performance with a -1.6% return.
- Industry Moves: Highlights include Agridex’s blockchain coffee trade and Allo securing $100M for Bitcoin-backed loans, signaling ongoing development in the sector.
If you’ve been participating in the market over the last week, then you’ve likely noticed two things: volatility and low liquidity.
The market is yet to show a clear direction, and the vast majority of cryptocurrencies are oscillating within a wide range as this month’s earlier euphoria continues dissipating.
Despite this, most cryptocurrencies are strongly in the green over the last week, while most RWA tokens have recovered from last week’s losses.
Let’s take a closer look, shall we?
>> Click here to see last week’s RWA recap.
Market Overview
The last week was characterized by extremely choppy market action, with rallies, crashes, recoveries and retraces commonplace across most cryptocurrencies.
Source: Bitcoin (BTC) Coin Page
The highlight of the week occurred on Dec. 26, when BTC briefly reclaimed the $99,000 threshold. Since then, the OG cryptocurrency has fallen back to around $96,400, despite touching a weekly low of around $92,600 at the start of the week.
Overall, Bitcoin (BTC) is now up 3.4% for the week. Most altcoins are also strongly in the green over this timeframe. Indeed, every cryptocurrency in the top 20 by market capitalization (barring stablecoins) is in the green over this period.
Despite the recovery, the CoinMarketCap Crypto Fear & Greed index has fallen back to 54, suggesting the recent market mania has cooled off somewhat. This neutral figure is the lowest value seen since early November 2024.
RWA Sector Recap
Like most sectors, the RWA sector experienced a striking recovery following last week’s bearish price action.
A handful of major RWA tokens are in the red over this period, while the vast majority experienced significant growth instead.
Source: Top Real World Asset Tokens Page
Overall, the market capitalization of the RWA sector has improved from $56.4 billion to $65.3 billion in this time frame, equivalent to a gain of 15.7%.
Though most RWA tokens are in the green right now, there are a handful of exceptional performers. Some of these include:
- Reserve Rights (RSR): gained 56.8%
- TokenFi (TOKEN): gained 45.2%
- Clearpool (CPOOL): gained 32.1%
- Realio Network (RIO): gained 28.9%
Despite the meteoric growth of the RWA sector this week, not all related assets were quite so fortunate.
Some of this week’s worst-performing RWA tokens include:
- Propchain (PROPC): lost 5.7%
- CANTO (CANTO): lost 5.4%
- Mey Network (MEY): lost 3.4%
Despite the significant rally over the last week, the RWA sector is performing worse than most other sectors in terms of mcap-weighted performance. Per data from DefiLlama, the sector has a -1.6% mcap-weighted return over the last week, compared to +12.2% for CEX tokens and +1.9% for AI tokens.
Note that the mcap-weighted return is a relative measure—it is possible to have a negative mcap-weighted return, despite having the sector gaining market capitalization over the measured period.
Although very few RWA tokens have hit all-time highs recently, the strong recovery bodes well for the sector’s future.
>> Keep tabs on your favorite RWA tokens here.
RWA News Roundup
Though the price action of RWA tokens has cooled off somewhat, the industry is still actively developing in the background.
We’ve highlighted some of the most important updates for you below.
Agridex Complete First On-Chain Coffee Transaction: Agridex has completed its first blockchain-based coffee trade using the Solana network. Tiki Tonga Coffee exported coffee to South Africa, utilizing Agridex for the transaction. The payment was settled in South African rands and British pounds with a 0.5% transaction fee, promising more efficient transactions for agricultural commodities.
Allo.xyz Secures $100 Million Credit Facility for RWA Lending Solution: Allo has secured $100 million in debt financing to expand its Bitcoin-backed lending platform. This credit facility, arranged by undisclosed institutional lenders, will support the growth of its lending services backed by Bitcoin as collateral. The platform also recently secured $2 million in seed funding. (source)
Binance Labs Reveals Investment in Usual: Binance Labs has invested in Usual, a decentralized stablecoin issuer, as part of a Series A funding round. Usual's model features stablecoins collateralized by real-world assets, emphasizing community ownership and governance. This collaboration aims to innovate the stablecoin sector by distributing 90% of $USUAL tokens to users, fostering an equitable financial ecosystem.
Plume Network Secures $20 Million in Series A Funding: Plume Network, an RWAfi layer-1 platform, secured $20 million in a funding round led by Brevan Howard Digital, Haun Ventures, Lightspeed Faction, and Galaxy Ventures. The investment supports Plume's development of a platform that tokenizes real-world assets, allowing their use as collateral for financial products.
>> That’s all for this week’s RWA roundup. Join us next week for another dose of AI analyses, news and updates!
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