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Reports say that several RWA (real-world asset) cryptocurrencies are currently bullish. In this time when Bitcoin is surging to heights unheard of in the future, should you invest in RWA? What RWA assets are trending now and which ones should you invest in? This article aims to answer all these questions and more so that you will better understand the best RWA cryptocurrencies in 2024.
What are RWA Cryptos?
From being a speculative market without sustainability, the cryptocurrency market has become a more mainstream market over the years. Financial institutions and developers are finding new innovative ways to integrate blockchain and cryptocurrencies into real life. RWA crypto or real-world asset crypto is one such innovative idea that makes it possible to tokenize real-world assets such as real estate, financial instruments, bonds, and commodities. This makes it possible to liquefy assets that couldn’t otherwise.
RWA integrates non-blockchain assets into blockchain to enhance liquidity, transparency, and accessibility of non-blockchain assets. This allows people to own a small portion of a real-life asset rather than purchasing it as a whole. Additionally, tokenization reduces entry barriers such as geographical barriers and lets global ownership of the underlying asset. According to industry experts, the RWA is expected to be a high-yield generating instrument in the cryptocurrency market, with projections of reaching about $16 trillion market by 2030.
Top RWA (real-world asset) Cryptos
Below are some of the best-performing RWA crypto coins in 2024. The below list is selected and ranked according to the market capitalization.
| Sl | RWA Crypto | Market Cap |
|---|---|---|
| 1 | Avalanche (AVAX) | $13.05B |
| 2 | Chainlink (LINK) | $8.41B |
| 3 | VeChain (VET) | $2.03B |
| 4 | Maker (MKR) | $1.31B |
| 5 | MANTRA (OM) | $1.23B |
| 6 | Ondo (ONDO) | $1.14B |
| 7 | Quant (QNT) | $726.25M |
| 8 | Axelar (AXL) | $591.85M |
| 9 | Synthetix (SNX) | $492.5M |
| 10 | IOTA (IOTA) | $481.61M |
1. Avalanche (AVAX)
Avalanche has come up with one of the most major updates in the network called the Avalanche 9000. This update was aimed at bringing the new RWA wave to the blockchain network the new updated Avalanche network allows compliance-first companies to develop their own blockchain in the network.
The institutional interest in cryptocurrencies has been improving over the years and in 2024, the SEC approved Spot ETFs of Bitcoin and Ethereum which opened a floodgate and now a lot of financial institutions are dipping their hands in the cryptocurrency market. Since RWA is a concept that would be easier to jump onto for traditional financial institutions, RWA tokenization is becoming a substantial part of the market.
The new Avalanche protocol has removed the obligation for Avalanche validators to validate its permissionless and public blockchain to capitalize on the sudden interest in RWA. By doing so, financial institutions can create their blockchain on Avalanche without exposing themselves to permission-less public blockchain.
Avalanche market statistics at the time of writing this article:
- Price: $32.11 (-13% in 24h)
- 24h volume: $1,571,428,171
- Market capitalization: $13B+
- Circulating Supply: 407,332,548
2. Chainlink (LINK)
Chainlink is the largest oracle in the cryptocurrency market that enables communication between smart contracts and off-chain data securely. In RWA, the digital tokens heavily depend on off-chain, real-life data to accurately reflect their values. Due to this reason, Chainlink is one of the most sought-after blockchain networks for RWA tokenization.
Chainlink can collect information about RWA in real-time from off-chain networks such as TraFi (traditional finance) and connect it to the on-chain smart contracts. Without networks like Chainlinik, RWA and off-chain communications are almost impossible. Additionally, the Chainlink network also offers proof of reserves protocol which is crucial for verifying the value of off-chain assets.
So, as more financial institutions are stepping up to tokenize RWA, Chainlink may also grow, making it a good investment option at the time.
Here is Chainlink in numbers:
- Price: $13.34 (-9.35% in 24h)
- 24h volume: $969,675,406
- Market capitalization: $8B+
- Circulating Supply: 626,849,970
3. VeChain (VET)
According to the analysis of an industry expert, VeChain has become one of the most dominant players in the IoT and RWA industry. In terms of RWA tokenization, VeChain has partnered with the BCG (Boston Consulting Group), one of the largest financial consultancies and financial institutions. By working together they have made it easier for the clients to tokenize their real-world assets and sell them on the crypto exchange. Clients can tokenize any real-world assets such as equities, government bonds, commodities, real estate, and more.
VeChain is also deemed one of the most dominant networks in the IoT (Internet of Things) market as well. Blockchain in IoT is still in its budding stages. However, it has the potential to become a dominant factor in the industry moving forward. It is said that the IoT blockchain market can have an annual growth of 54% in the next year. The increased popularity of IoT in asset management, automated transportation, internet-controlled home appliances, etc. is the reason behind the sudden surge in IoT technology.
Here is the current market overview of VeChain (VET):
- Price: $0.02521(-7.47% in 24h)
- 24h volume: $73.93M
- Market capitalization: $2B+
- Circulating Supply: 86.71B
4. Maker (MKR)
Maker is the governance token of MakerDAO, a decentralized organization on the Ethereum blockchain. MakerDAO announced that it would be accepting proposals to expand the tokenization of real-world assets (RWA) a couple of months back. The proposal also focuses on finding innovative ideas for using RWA crypto coins in the Decentralized Finance (DeFi) ecosystem. According to a recent report, MakerDAO is coming on top as one of the pioneering networks in the RWA sector.
MakerDAO focuses on US treasury assets that are easy for users who are not that familiar with cryptocurrencies to get behind. The RWA of MakerDAO is highly successful and has created a lot of attention in the market. Today, one of the major revenue streams of MakerDAO is the RWA.
Since MKR is the governance token of Maker DAO, those who hold the cryptocurrency can influence the RWA industry. So, as more assets get tokenized in MakerDAO, MKR coins can surge substantially.
Maker (MKR) current market trends:
- Price: $1,567.65 (+4.42% in 24h)
- 24h volume: $215.62M
- Market capitalization: $1.38B+
- Circulating Supply: 879.84K
5. MANTRA (OM)
MANTRA (OM) is a decentralized finance platform designed for adhering to the enforcement of real-world regulatory requirements. It is built as a permissionless blockchain for permissioned applications, making it easy for institutional users. They can enjoy the blockchain’s security without necessarily exposing themselves to the public blockchain.
The blockchain has been built with pre-established decentralized applications (dApps), well-known brands, and partnerships with well-known on-chain and off-chain solutions providers to expand the reach and use cases of the network. One of the major factors that make MANTRA stand out from the rest of the networks attempting to put their foot in RWA crypto is that it features built-in modules, SDKs, and APIs to create, trade, and manage real-world assets that are compliant with regulations. By streamlining this process, MANTRA makes the platform easy to use.
MANTRA (OM) market overview:
- Price: $1.43 (+4.15% in 24h)
- 24h volume: $122.98M
- Market capitalization: $1.22B+
- Circulating Supply: 855.14M
6. Ondo (ONDO)
Ondo is a decentralized blockchain network that enables TradFi (traditional finance), and DeFi (decentralized finance). By doing so, Ondo can support the tokenization of real-world assets (RWAs) such as bonds, ETFs (Exchange Trade Funds), and more. By tokenizing these real-world assets that are traditionally reserved for institutional investors alone, Ondo can democratize it.
Ondo offers a variety of financial products such as USDY backed by US treasuries, and institutional-grade financial products such as fixed loans backed by yield-generating crypto assets. Additionally, the network also makes communications between blockchains such as Ethereum, Solana, and Aptos possible.
ONDO is the governance token used in the Ondo ecosystem. The holders of ONDO tokens can vote on key decisions of the network such as economic parameters, smart contract upgrades, and the overall protocol of the Ondo ecosystem.
Here is the current market statistics of ONDO:
- Price: $0.8684 (+4.20% in 24h)
- 24h volume: $384.31M
- Market capitalization: $1.21B+
- Circulating Supply: 1.39B
7. Quant (QNT)
Quant is deemed as one of the pioneering networks that offers interoperability between blockchains globally. The interoperability of blockchains is provided without interfering with the integrity and transparency of the blockchain networks they are handling. This allows developers to create dApps (decentralized applications) that can work with multiple blockchains. They are also called MApps or multi-chain apps. This interoperably is good for improving the exposure of the businesses tokenizing RWA, which is one of the reasons why Quant is considered an ideal platform by many institutional investors.
Quant’s ability to allow interoperability among different chains can possibly revolutionize the current banking system and allow different assets to be traded in one single platform. The transactions become easier and cheaper, the accessibility increases, and most importantly users will be able to tokenize their assets more effortlessly.
With the increased interest in RWA tokenization, the native cryptocurrency of Quant, QNT is expected to surge in the coming years. However, according to the current statistics, QNT has been swinging dramatically in the last 30 days. So, you should do enough homework and research before deciding to invest in it.
QNT market value:
- Price: $63.19 (-5.58% in 24h)
- 24h volume: $36.45M
- Market capitalization: $769.92M
- Circulating Supply: 12.07M
8. Axelar (AXL)
Axelar (AXL) is one of the top-performing cryptocurrencies in the RWA game. Within weeks of dipping its toes in RWA, some of the larger Real World Asset tokens of the network gained about 16%. Axelar achieved this by being a secure and efficient communication intermediary between blockchains.
As we have mentioned in the above examples, interoperable networks are crucial in RWA tokenization, because they boost the discoverability and accessibility of the tokens. Finding a wider range of investors and making it more democratic, is the original goal of blockchain technology.
In the last 30 days, AXL is alternating between 0.60 and 0.850. According to price forecasts, this is a good time to invest in AXL. it has the potential to reach a maximum price of $ 2.66 in the year 2030 with a long-term gain of about 364%.
Here is the current market value of AXL:
- Price: $0.7305 (+3.28% in 24h)
- 24h volume: $28.26M
- Market capitalization: $615.85M
- Circulating Supply: 842.88M
9. Synthetix (SNX)
Synthetix is a decentralized network that makes it possible for users to create synthetic assets that are linked to real-world assets. The synthetic assets are created on the Ethereum blockchain, giving them global exposure. Other users on the network can easily own a portion of the real-world assets without having to factor in geo-restrictions or without having to buy the entire thing alone.
Synthetix is one among many other networks available today that supports the tokenization of RWA. However, one of the differentiating factors of the network is that the native token, SNX collateralizes the synthetic assets underneath which is an innovative approach for increasing the popularity and usability of decentralized finance.
SNX token peaked in 2021 and was never able to reach its lost glory again. However, with the innovative approaches the network is taking, the market sentiments are bullish now. Many investors speculate that the token is on the cusp of a big breakout.
Here is SNX in numbers:
- Price: $1.56 (+3.36% in 24h)
- 24h volume: $51.06M
- Market capitalization: $509.81M
- Circulating Supply: 327.77M
10. IOTA (IOTA)
IOTA is a network that can bridge the gap between blockchains and real-world assets (RWA) to make tokenization of real-work assets possible. While IOTA has been pushed to 10th place in this place, it is one of the top emerging RWA cryptos in the market. The major advantage of IOTA with respect to its competitors is its fee-less approach and scalable architecture.
IOTA does not have any miners and transaction fees. So, the transactions of real-world assets (RWAs) through cryptocurrencies become seamless and more affordable. This makes IOTA, one of the most ideal platforms for RWA tokenization.
By tokenizing physical assets such as financial bonds, real estate, and arts, IOTA serves as a bridge between Web3 and the real world. This enables an entirely new ecosystem where the assets interact with each other.
IOTA current market value:
- Price: $0.1427 (+3.16% in 24h)
- 24h volume: $18.33M
- Market capitalization: $501.86M
- Circulating Supply: 3.52B
BlackRock Pumping Money into Real-World Assets
BlackRock plans to tokenize $10 trillion worth of physical assets
It is the world’s largest asset management institution that invests in various markets on behalf of its clients. So, when they are turning their heads into tokenized real-world assets or RWA cryptos, it harnesses a lot of attention from other investors. According to sources, Blackrock is planning to tokenize $10 trillion worth of assets in partnership with securities, this year.
This massive entry of Blacrock into the RWA crypto market means that the industry as a whole can grow. BlackRock made its first step into the RWA market by issuing a tokenized BlackRock USD Institutional Digital Liquidity Fund in the Ethereum blockchain. The spokespersons from BlackRock remarked that this move is the latest part of the company’s digital asset strategy.
Advantages of RWA Cryptos
Tokenizing real-world assets offers many advantages to the users and clients. Let’s see some of the top advantages of RWA cryptos:
Global Accessibility
One of the major drawbacks of physical assets is their inaccessibility to international users. However, by tokenizing them, anyone from anywhere can claim the ownership of a physical asset using the internet.
Fractional Ownership
Tokenizing helps the users to own a fraction of the underlying physical asset, without actually owning the entire asset. For example, you can own a fraction if real estate or commodity without needing huge investments. This also helps the asset owners to liquidate their assets quickly and raise funds.
Better Liquidity
Tokenizing allows the asset owners to find buyers more easily. Additionally, it is an added advantage that, unlike traditional markets, the crypto market can operate continuously, offering a bigger window for finding buyers.
Transparency
Transparency is one of the core foundations of blockchain and cryptocurrency. All RWA crypto transactions are recorded securely in the blockchain. This induces investor confidence and limits possible fraud and ownership conflicts.
Cost-effective
Tokenization removes the need for intermediaries to record and legalize the ownership of an asset. By removing the intermediaries, paperwork, and legal fees, the management of tokenized RWA is more cost-effective.
Removing Entry Barriers
Traditionally many financial products such as government funds are only reserved for certain individuals who fit into the pre-set criteria. However, tokenized assets remove these barriers and make it accessible to anyone.
Drawbacks of RWA Tokenization
The tokenization of RWA provides a range of advantages. However, it is not devoid of any drawbacks. Here are some of the most important things that need to be changed to further enhance the impact of RWA tokenization:
Government Regulations
Regulations for cryptocurrencies can be confusing as they differ by jurisdiction. So, you need to be familiar with the regulations in your jurisdiction to safely interact with crypto assets.
Anti-scam Laws
Tokenization projects must adhere to the local laws that are put in place to reduce fraudulent activities, this may include taking effective custody solutions and security measures for safely securing the physical asset you are tokenizing.
Bigger Learning Curve
While buying RWA tokens can be relatively easy to understand, tokenizing a physical asset can be challenging and would require enough technical knowledge.
Lack of Standardisation
While you can tokenize different types of physical assets, the lack of standardization across the board can lead to confusion regarding the value of each token and the security of the assets.
Potential for Centralized Control
While RWA tokens are supposed to provide the decentralization of other public cryptocurrency tokens, the issuer might retain significant control over the underlying asset.
How to Tokenize Your Physical Asset?
While there is no fixed standard or protocol for tokenizing real-world assets, it generally involves the following steps:
1. Selection and Evaluation Process
The first step in tokenizing a real-life asset is to find a suitable asset. Once you find the asset, you need to carefully assess and document its value by following the laws and regulations in your jurisdiction.
2. Selecting the Tokenization Structure
One of the most important factors in legalizing the tokenization of RWA is, determining the specific rights associated with the tokens and choosing an appropriate tokenization structure. This is very important to ensure the digital token represents the ownership of the portion of the underlying asset. So, be careful with defining your token structure.
There are two popular tokenization structures:
- Tokenized SPV: Also known as indirect tokenization. Here, the underlying asset is held by an entity. This entity tokenizes and issues the tokens to the public.
- Direct Asset Tokenization: This is a less common structure where the asset is directly tokenized and each token represents a direct ownership of a portion of the asset.
3. Determine the Custody of Assets and the Security Tokens
You can hire a qualified and independent custodian to secure the asset till it is properly digitized. However, the security tokens can be stored in a self-custody wallet or by using a customized digital wallet. While self-custody wallets have limited backup options, they are generally more safe than custodial wallets.
4. Tokenization
Once you have completed the above steps, it is time to tokenize your asset. You can issue your token by using your selected blockchain, and sell it on your own website or through platforms like InvestaX and IX Swap.
5. Primary Offering or Presale
Once your token is live, you can start the initial offerings to raise funds. Keep in mind that all RWA tokens that are classified as securities need investor registration, and compliance of KYC/AML checks.
6. Secondary Offering
Following the primary offering, you can find more investors in the secondary trading platforms through several channels such as licensed RWA brokers, RWA exchanges, and other decentralized exchanges.
Final Thoughts: RWA tokens in 2024
Studies show that the RWA crypto token market can become a $16 trillion industry by the end of the decade. Understandably, many of the blockchain networks are providing innovative solutions for integrating real-world assets (RWA) into the blockchain ecosystem.
This is aimed at capitalizing on the current bullish sentiments in the RWA ecosystem. In this article, we have seen the 10 best RWA crypto tokens. Keep in mind that the cryptos listed here are ranked by the market capitalization at the time of writing this article, you may need to look at the current market statistics for the updated data.
