Tokenized real-world assets, seen as a major growth driver for cryptocurrencies, are showing signs of contraction. This shift particularly affects Ethereum, Solana, and XRP, with declining values in both represented and distributed asset categories. Investors may need to approach these tokens more carefully amid the cooling trend.
Tokenized real-world assets (RWAs) have been positioned as a key growth area for the crypto sector over the next five years, as they bring more value onto blockchains and support native token prices. However, recent data indicates a slowdown. The total value of represented RWAs, which primarily use blockchains for record-keeping, stands at about $390.9 billion across all networks, marking a 2% decline over the past 30 days. Distributed RWAs, where assets actively move on-chain, total around $17.8 billion, down 1% in the same period, following a significant expansion in the prior 12 months.
This trend has notable implications for major blockchains. Ethereum hosts the largest share, with $11.4 billion in distributed RWAs—a sharp 8.3% drop from 30 days ago—and $272.8 million in represented RWAs, excluding stablecoins. Despite a 13.7% rise in RWA holders, the value outflow signals potential challenges for the network.
Solana's RWA ecosystem totals $807.8 million, entirely in the distributed category, and it grew by 14.4% over the last month, showing resilience against broader sector weakness. On the XRP Ledger, RWAs amount to $394.6 million, split with 34% distributed (up 6.1%) and 66% represented (up 7.6%), indicating continued expansion in both areas.
Ethereum appears most vulnerable to further capital outflows if the RWA slowdown persists, warranting heightened caution for investors. Solana and XRP may also face impacts, though their recent gains offer some buffer. While RWAs remain one of several upside factors for these tokens, the current softening serves as a reminder to scrutinize trends before investing.