Real-world asset tokens surge as rate cuts ignite crypto markets, with new platforms racing to tokenize everything from gold to government bonds
TL;DR…
- FOMC cuts rates by 50 bps: The first rate cut in four years sparks bullish sentiment in crypto and RWA markets, driving prices up.
- RWA tokens boom: Avalanche and Axelar are up over 10% this week; Polymath soars 144% despite low volume and recent sell-off.
- Key launches: Hedera’s asset tokenization studio, Matrixport’s gold-backed token, and WisdomTree’s platform boost RWA adoption.
- Caution for investors: Research pumps, define entry/exit prices, and avoid overleveraging to navigate this volatile market safely.
According to a recent Binance report, the value of tokenized real world assets just surpassed $12 billion — largely driven by the growth of tokenized U.S. treasury notes.
Meanwhile, developments are now underway to further stratify the space and bring on-chain a wider variety of physical assets.
Now, the market appears to be waking up to the potential of this new asset class, with real world assets skyrocketing over the last week.
Let’s dive in and see what’s behind the recent momentum.
RWA Market Update
On Wednesday, the FOMC announced its first interest rate cut in four years. After cutting 50 base points (bps) from the interest rate, the federal funds target range has now fallen to 4.75%–5.00%.
This long-anticipated event has had bullish reverberations throughout most financial markets, with the crypto market in particular seeing explosive growth in the last 24 hours.
Narrowing our focus to RWA tokens, we find that all of the top 10 RWA tokens by market capitalization are in the green on the last day, and 9 out of 10 of these are up over the last 7 days.
Source: Real World Asset screener page
Avalanche and Axelar stand out as the best performers among RWA large-cap tokens over the last week, up 10.47% and 10% respectively over this period.
Most other RWA tokens also caught an impressive bid over the last week, with tokens like Chainlink, Ondo and Synthetix.
A smaller RWA token known as Polymath is currently the best performer in the last week — gaining 32.3% in the last day and 144.6% in the last week. That said, the token has abysmal trading volume and hasn’t yet recovered from a massive sell-off last week.
Source: Polymath Network token page
The CMC fear and greed index, which aggregates several metrics to gauge market sentiment, is currently at 43.6 and back in neutral territory. This indicates there is still a degree of uncertainty in the market and it could go either way in the coming weeks.
Weekly News Roundup
The last week was filled with exciting updates and developments in the RWA space. We’ve rounded up the most significant stories to help you catch up on all the latest news pronto.
- Hedera announces asset tokenization studio: Hedera's new Asset Tokenization Studio provides an all-in-one solution for tokenizing real-world assets, ensuring regulatory compliance while simplifying asset creation and management on the blockchain.
- Matrixport launches gold-backed token: Matrixsport stepped further into the RWA domain with the launch of a gold-backed stablecoin known as XAUm. Each token is backed by one troy ounce of fine gold and stored with custodians located in tax-free zones. Users can purchase XAUm directly using USDC or USDT and be transferred on Ethereum and BNB Chain without restrictions.
- WisdomTree launches WisdomTree Connect: The new platform allows businesses and institutions to tokenize real-world assets on-chain. It simplifies access to digital funds through blockchain integration, supporting regulatory compliance and secure asset transfers.
- Xalts & Avalanche partner to boost RWA tokenization: The new partnership aims to help financial institutions deploy custom blockchain networks for real world asset (RWA) tokenization. This collaboration combines Avalanche's Layer 1 tech and Xalts' RWA Cloud platform to automate on-chain processes, benefiting enterprises and governments globally.
- Clearpool announces Oxygen (O2): Billed as an "innovative liquidity layer" Oxygen (O2) is built for the Ozean chain and will provide builders with access to a variety of unique liquidity solutions helping to enhance the development and adoption of RWA products.
Preparing for the Future
As a cryptocurrency trader or investor scoping out RWA tokens as potential picks for your portfolio, it’s always wise to set some conditions for your future investments to give yourself the best chance of securing profit.
Given that there are now signs that a potential bull run is on the cards, we’ve got a few pointers you might want to consider:
Do your research before jumping on bandwagons.
Look, we get it. Nobody wants to be left behind when a token starts pumping. While sudden upward moves out of nowhere can be a sign of insider trading or positive developments, they’re often nothingburgers that quickly retrace. Make sure to identify the basis for the pump before jumping in, no matter what.
Define your entry and exit prices.
By setting clear entry and exit prices for your positions, you can enter positions without worrying about last-minute mental resistance and can lock in profits/avoid losses more reliably. If you have already built your positions, now is a good time to define when you should exit. Don’t be that guy that roundtrips his bags.
Avoid excessive leverage.
Using leverage to maximize your capital efficiency can be a useful tool in the right situation but many inexperienced traders abuse it and get liquidated. If you absolutely must use leverage, keep it within reason. Trading with more than 20x leverage in a volatile market is asking for trouble.
And that’s a wrap!
Join us for next week’s RWA roundup and best of luck in what appears to be promising times ahead.
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