Real-World Asset Tokenization Surges to All-Time High, Leading Crypto Market Recovery

Real-World Asset Tokenization Surges to All-Time High, Leading Crypto Market Recovery

The real-world asset (RWA) tokenization market has reclaimed its all-time high in total on-chain value, signaling a robust resurgence as RWA-related tokens spearhead the broader crypto market recovery on February 3.

According to industry analytics platform RWA.xyz, the total value locked (TVL) in tokenized real-world assets has climbed back to $17.1 billion, matching its previous peak from mid-January. This marks an impressive 94% year-over-year increase, highlighting the growing adoption and institutional interest in RWA tokenization.

RWA Tokens Drive Market Rebound

The rally comes as RWA-linked digital assets outperform the wider crypto market, fueled by macroeconomic developments—including U.S. President Donald Trump’s decision to temporarily suspend tariffs on Canada and Mexico.

While the total cryptocurrency market capitalization has risen approximately 7% in the past 24 hours, RWA-related tokens have experienced even more dramatic gains:

• Chainlink (LINK) surged 22%, reclaiming the $21 level after dipping to $17 earlier in the day.
• Mantra (OM) rallied 23%, reaching $6 after briefly falling below that threshold.
• Ondo Finance (ONDO) skyrocketed 27%, climbing to $1.40 from below $1.10 the previous day.
• Chintai (CHEX), a regulated tokenization platform under the Monetary Authority of Singapore, saw its native token jump 38%, rebounding to $0.60 after sinking below $0.40 on February 3.

Other RWA-focused assets such as Algorand (ALGO), XDC Network (XDC), Quant (QNT), and Pendle (PENDLE) have also posted significant gains, outperforming the broader market.

According to Pav Hundal, lead analyst at Australia-based crypto exchange Swyftx, this surge reflects a speculative rotation within the market, suggesting that investors are revisiting undervalued sectors:

“Nothing about the market is normal right now, including this rebound. Tokenization has been somewhat overlooked recently, despite its potential to revolutionize markets like bonds and equities.”

Hundal emphasized that the renewed focus on RWAs provides investors with a wider array of opportunities in the altcoin sector, reshaping investment strategies.

Wall Street Bets Big on Tokenization

The sharp rise in RWA tokenization TVL began in early November, coinciding with the broader crypto market recovery. Since then, the sector has expanded by roughly $4 billion, marking a 26% increase in just a few months.

Currently, private credit dominates 70% of the total on-chain value in the sector, while U.S. Treasury-backed assets account for 21%, according to RWA.xyz.

Institutional players are also increasingly positioning themselves for the $30 trillion RWA tokenization market. Haqq Network co-founder Andrey Kuznetsov described asset tokenization as a transformational shift in financial markets, emphasizing that Wall Street heavyweights are preparing to lead this evolution.

Looking ahead, Eli Cohen, general counsel at RWA tokenization platform Centrifuge, believes that the Trump administration may further distance itself from restrictive policies, potentially accelerating RWA adoption throughout 2024.

With institutional backing and increasing mainstream recognition, real-world asset tokenization is emerging as one of the most influential narratives shaping the future of crypto and traditional finance alike.