TechFlow, Dec. 29 — According to Cointelegraph, DefiLlama data shows that RWA protocols have surpassed DEXs to become the fifth-largest category in decentralized finance (DeFi) by total value locked (TVL). RWA protocols currently hold around $17 billion in TVL, a significant increase from approximately $12 billion in the fourth quarter of 2024.
Vincent Liu, Chief Investment Officer at Kronos Research, said RWA growth is primarily driven by "balance sheet incentives rather than experimental demand." Higher interest rates have made tokenized Treasuries and private credit high-yield assets on-chain, while improved regulatory conditions have lowered entry barriers for institutional investors.
Tokenized U.S. Treasuries remain the main product, with funds such as BlackRock's BUIDL, Circle's USYC, Franklin Templeton's BENJI, and Ondo's OUSG driving the segment into the billions of dollars. Additionally, rising gold and silver prices have injected new momentum into the tokenized commodities market, pushing its market cap close to $4 billion, led by products like Tether Gold and Paxos Gold.
