The Real-world asset (RWA) market hit another all-time high (ATH) on February 3, 2025, with the total value locked (TVL) on the chain reaching $17.1 billion. This marks a significant increase of 94% compared to the same period last year, according to data from industry analytics platform RWA.xyz.
RWA Token Leads Crypto Market Recovery
The market recovery was driven by the impressive performance of various RWA tokens following news that US President Donald Trump had temporarily suspended tariffs on Canada and Mexico. Over the past 24 hours, the overall crypto market cap has increased by around 7%, while RWA-related digital assets have seen a bigger surge.
Some of the tokens that recorded significant increases include:
Chainlink (LINK): Surged 22% to surpass $21 after previously dropping to $17.
Mantra (OM): This layer-1 token surged 23% to $6.
Ondo Finance (ONDO): Soared nearly 27% to $1.40 after briefly dropping below $1.10.
Chintai (CHEX): The Monetary Authority of Singapore-regulated token jumped 38% to $0.60 from below $0.40.
Other RWA-focused crypto assets, such as Algorand (ALGO), XDC Network (XDC), Quant (QNT), and Pendle (PENDLE), have also outperformed the broader crypto market.
According to Pav Hundal, lead analyst at crypto platform Swyftx, the surge can be attributed to a speculative rotation in the market. “Tokenization has been a major factor in the market recently. These projects are creating real solutions to support markets like bonds and equities,” he said.
Wall Street Optimism on RWA Tokenization
The positive trend of the RWA tokenization market began in early November and has continued with an increase of around 26% or almost $4 billion to date. Data from RWA.xyz shows that almost 70% of the sector's onchain value comes from private credit, while US Treasury debt accounts for 21%.
Wall Street financial giants are also starting to take notice of the potential of the RWA tokenization market, which is estimated to reach $30 trillion. Andrey Kuznetsov, co-founder of Haqq Network, said that asset tokenization is “fundamentally changing the financial market,” with many large financial institutions starting to adjust their strategies to lead the change.
Eli Cohen, general counsel of RWA tokenization platform Centrifuge, predicts that the Trump administration will lift current restrictive policies, which could further boost the growth of the RWA market this year.
With growing interest from institutional investors and growing adoption, the real-world asset tokenization market appears poised to enter a new era in the digital financial ecosystem.
