RWA Protocols Surge to $17B TVL, Overtaking DEXs in DeFi Hierarchy
Real-world asset (RWA) protocols have eclipsed decentralized exchanges to become the fifth-largest DeFi category by total value locked, with $17 billion in TVL marking a 42% quarterly surge. This growth trajectory—fueled by institutional demand for tokenized Treasuries and private credit—signals a maturation beyond speculative experimentation.
Vincent Liu of Kronos Research attributes the momentum to balance-sheet incentives, as higher interest rates make yield-bearing RWAs increasingly attractive. The sector's rise coincides with improving regulatory clarity, lowering barriers for institutional allocators.
Tokenized US Treasuries emerge as the gateway product, with BlackRock's BUIDL fund and similar vehicles propelling the segment to multi-billion dollar scale. Market observers anticipate accelerated adoption in 2025 as traditional finance embraces blockchain-based asset representation.