Observing the current state of tokenized stocks: Tesla reigns supreme in trading, weekend liquidity plummets
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Observing the current state of tokenized stocks: Tesla reigns supreme in trading, weekend liquidity plummets
New opportunity for South Korean stock investors?
Navigating Web3 tides with focused insightsAuthor: Heechang
Compiled by: TechFlow
xStocks offers tokenized stock services, enabling investors to trade tokenized versions of popular U.S. stocks (such as Tesla) in real time. Although still in its early stages, it has already revealed some interesting patterns.
Observation 1: Trading Concentrated on Tesla (TSLA)
Similar to many emerging markets, trading activity quickly concentrates on a small number of stocks. Data shows that volume is highly concentrated in the most well-known and volatile stocks, with Tesla being the most prominent example.
This concentration is not surprising: liquidity tends to accumulate around assets already favored by retail investors, and early adopters typically use familiar high-beta stocks to test new infrastructure.
Observation 2: Weekend Liquidity Declines
Data indicates that weekend on-chain stock trading volume drops to 30% or less of weekday levels. Unlike crypto-native assets that enable seamless 24/7 trading, tokenized stocks still inherit behavioral inertia from traditional market trading hours. When reference markets (e.g., Nasdaq, NYSE) are closed, traders appear less willing to trade, possibly due to concerns over arbitrage, price gaps, and the inability to hedge positions off-chain.
Observation 3: Prices Align with Nasdaq
Another key signal comes from pricing behavior during initial launch phases. Initially, xStocks tokens traded at a significant premium over their Nasdaq counterparts, reflecting market enthusiasm and potential friction in bridging fiat liquidity. Over time, however, these premiums have gradually diminished.
Current trading patterns show token prices tracking near the upper end of Tesla's intraday price range, closely aligned with Nasdaq reference prices.
Arbitrageurs appear to be enforcing this price discipline, though slight deviations persist at intraday highs, suggesting some market inefficiencies that may present both opportunities and risks for active traders.
A New Opportunity for Korean Investors?
Korean investors currently hold over $100 billion in U.S. stocks, with trading volume increasing 17-fold since January 2020. Existing infrastructure for Korean investors to trade U.S. stocks faces numerous limitations, including high fees, long settlement times, and slow cash-out processes—creating an opening for tokenized or on-chain mirrored stocks. As infrastructure and platforms supporting on-chain U.S. stock markets continue to mature, a new cohort of Korean traders will enter the crypto market, representing undoubtedly a massive opportunity.
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