Ethereum Emerges as Leader in Real-World Assets

Ethereum has established itself as the top blockchain for real-world assets (RWAs), with total assets under management increasing by 10% over the past month to $4.1B. The RWA market share for Ethereum rose by 3.39% to 54.5%, as the number of RWA holders grew 3.05% to 62.28K.

According to RWA.xyz, Ethereum has issued 163 RWA tokens. Christine Kim, VP of Research at Galaxy Digital, noted that 13 out of 20 financial institutions with crypto-specific infrastructures are issuing RWAs on Ethereum and its layer-2 (L2) networks. Large traditional companies, including Deutsche Bank, PayPal, Louis Vuitton, and Adidas, are also developing crypto applications in this ecosystem.

Ethereum has almost quadrupled the total value of RWAs compared to the next popular blockchain, zkSync, which has $1.95B. Current RWAs on Ethereum include money market funds and government bonds.

Market Share

As per RWA.xyz, Ethereum has 54.5% of the RWA market, with zkSync at 26%. Tether’s USDT is the largest tokenized asset on Ethereum, holding 58.37% of the market, with Circle’s USDC at 29%.

The value of RWAs issued on Ethereum has quadrupled over the past year. Institutions are also developing their own stablecoins, like PayPal’s PYUSD, with RWAs and stablecoins gaining traction in traditional finance. Kim highlights that the expectation of a more crypto-friendly regulatory environment in the U.S. is boosting adoption.

Competitive Landscape

Other blockchains lag significantly in RWA tokenization; zkSync’s total RWA value is $1.9 billion, followed by Stellar at $405.17 million. Aptos and Polygon are fourth and fifth with $335.5 million and $192.9 million, respectively.

Ethereum’s successful RWA tokenization stems from its robust smart contract ecosystem, security, and network effects. Layer 2 networks like zkSync also enhance scalability with lower fees and faster transactions.

Solana is now aiming to catch up by integrating with Securitize to offer high-speed, low-cost transactions for institutional investors.