Top 3 Reasons Attention Should Be Paid to Real-World Assets (RWA) DeFi Tokens

Top 3 Reasons Attention Should Be Paid to Real-World Assets (RWA) DeFi Tokens

The Decentralized Finance (DeFi) ecosystem is thriving, with a total value locked (TVL) of $47 billion. Atop this evolution, a new class of assets known as Real World Assets (RWAs) are making their way into the space, and DeFi analyst @DeFiIgnas explained why these assets will be the next frontier in the industry’s overall growth.

RWAs are DeFi tokens that address a specific need or provide a tailored solution that can be linked to the real world. Centrifuge and Maple Finance are two common real-world tokens in the DeFi ecosystem.

RWAs dominate four of the top ten lending protocols based on 180-day cumulative interest fees paid by users, according to DeFi Ignas.

Top 3 Reasons Attention Should Be Paid to Real-World Assets (RWA) DeFi Tokens Forks Daily

Supercharging RWA embrace

While lending on top DeFi platforms like Aave and Compound is based on leverage, lending on RWAs is undercollateralized and focused beyond the confines of the crypto world, according to the researcher. This will almost certainly increase interest in these tokens in the near future.

Another important factor demonstrating the importance of RWAs is that the most prominent among them now include Centrifuge (CFG), Maple Finance (MPL), TrueFi (TRU), and Goldfinch (GFI), all of which have market capitalizations under $100 million. When compared to established DeFi protocols like Synthetix, and especially Aave, which has a market cap of $1.2 billion, these tokens clearly have more upside potential.

Lending protocols, non-fungible tokens (NFT), metaverse and gaming-based tokens are all important entry points into the digital currency and blockchain worlds, but Real-World Assets are making their mark in the Web3.0 space, and there are plenty of reasons to be optimistic about their future potential.

RWA is expected to serve as a channel for bringing the next billion users into the Web3.0 world.

 

Share to Social Media

Recent Articles

Join Our Newsletter