The market for tokenized Real-World Assets (RWAs) on Ethereum has surged nearly 20 times since January 2024, according to new data spotlighted by Token Terminal. In August, Ethereum’s RWA market went over an astonishing $7.5 billion.
The rise is fueled by growing institutional adoption, with financial giants like BlackRock and Securitize building tokenized products on the network. In addition, platforms such as zkSync Era are contributing a large amount of transaction volume to the ecosystem.
Ethereum currently dominates the RWA space, holding a majority share and acting as the backbone for asset tokenization, including treasuries, private credit, real estate, commodities, and others.
The huge growth shows how traditional finance and crypto are coming together. Tokenization converts illiquid RWAs into instruments that are both divisible and tradable. This makes it easier for people to invest in things they couldn’t before, while making those assets easier to trade.
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However, a recent academic study points out that despite the rising value of tokenized RWAs, secondary market liquidity is still limited. A majority of these assets are hindered by low trading volume and minimal investor engagement, showing the need for better technology, clearer rules, and more developed markets on the blockchain.
Ethereum is doing well in August
There has been some strong performance from Ethereum during August, when the cryptocurrency came close to its all-time high (ATH) of around $4,890. In fact, in the last 30 days, Ethereum saw a roughly 17% increase, although it did start to fall after almost reaching the ATH. It’s currently hovering about $4,278, which is a 7% decrease compared to 7 days ago.
Nevertheless, institutional momentum is present as Ethereum’s spot ETFs continue to draw in major inflows. For instance, US-listed spot Ethereum ETFs saw a staggering $1.018 billion in net inflows on August 11, led by BlackRock’s ETHA with $639.8 million and Fidelity’s FETH with $276.9 million.
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In the first half of August, spot Ethereum ETFs already amassed over $3 billion in inflows, marking one of the strongest monthly inflow performances to date.
The explosive growth of RWAs on Ethereum, paired with the surging demand for ETH through spot ETFs, could position Ethereum as the central hub where traditional finance and blockchain converge.
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