RWA Tokens Could Be the Next Big Thing, Reveals Expert: Shares Top Picks: Clearpool (CPOOL), Mantra (OM), and More

The Real World Assets sector is becoming one of the hottest topics in the crypto world, and for good reason.

The Real World Assets (RWA) sector is emerging as a hot topic in the cryptocurrency world, attracting attention from major institutions and offering potential for vast growth.

A recent X thread by Axel Bitblaze (@Axel_bitblaze69) highlights the significance of RWA, explaining how it works and naming some top projects to keep an eye on.

Here's a closer look at RWA, its importance, and the tokens mentioned by the expert.

What Are RWAs and Why Do They Matter?

RWAs encompass physical or electronic assets such as real estate, gold, carbon credits, or bonds that are tokenized and brought onto blockchain networks.

This approach essentially makes these traditionally hard-to-access assets easier to trade and manage by converting them into digital tokens.

The process typically involves three steps:

The significance of this approach lies in its potential to unlock liquidity for traditionally illiquid markets.

Consider how long it usually takes to sell real estate. Tokenization accelerates this process, providing investors with access to fractionalized ownership and global markets.

Big Institutions Are Investing Heavily in RWA

Some of the largest players in traditional finance are already making significant investments in RWA projects.

For instance, BlackRock launched its tokenization fund, BUIDL, earlier this year. With over $500 million in total value locked (TVL) and operations spanning multiple chains like Ethereum, Aptos, and Avalanche, they are heavily engaged in this space.

Meanwhile, Franklin Templeton's Franklin OnChain U.S. Government Money Fund is now valued at over $410 million and is also expanding across blockchains.

Other major institutions, including JPMorgan, Citibank, and Fidelity, are beginning to explore similar opportunities, recognizing the potential of tokenized assets to transform markets.

Despite these large initiatives, RWA still constitutes a relatively small portion of the crypto market, with just $18 billion in market capitalization.

For comparison, Dogecoin alone has a market cap of $60 billion. However, forecasts are optimistic.

Reports indicate that the RWA sector could grow to $2 trillion by 2030, with a best-case scenario reaching $30 trillion—a massive leap from where it stands today.

The Expert’s Top RWA Projects to Watch

Axel Bitblaze shared his top picks for RWA tokens that are positioned for success. Here are the highlights:

1. $CPOOL

$CPOOL focuses on tokenizing private credit and already boasts $90 million in TVL. The Ethereum-based protocol has partnerships with Hex Trust and Helix Finance, and it has issued over $650 million in loans.

2. $OM

As one of the largest RWA protocols, $OM is gaining popularity due to its staking features and partnerships. Recently, the project raised $11 million and added liquidity pools and in-wallet swaps, enhancing its usability. Collaborations with Soma Finance further its efforts to bring real-world assets on-chain.

3. $LINGO

Launching on December 12, $LINGO is building a rewards ecosystem powered by RWA. It already has a user base of over 8 million, making it a project to watch as it establishes itself on Base and Solana.

4. $CHEX

Dubbed the “Shopify of RWA,” $CHEX is focused on compliance and tokenizing real estate. With all of its token supply in circulation, there’s no risk of dilution. It’s also working on tokenizing virtual power purchase agreements, with the market for these agreements already valued at $17 billion in 2023.

Why RWA Could Be the Next Big Thing

Unlike meme coins or speculative tokens, RWA projects bring tangible assets onto the blockchain, offering investors a new way to diversify.

By solving issues like limited market accessibility, illiquidity, and high transaction costs, RWA tokenization could become a fundamental aspect of both crypto and traditional finance.

Axel Bitblaze predicts that RWA could be a top 10 crypto sector by the next market cycle peak, with some tokens reaching valuations of $10 billion or more. With big institutions already heavily involved, the sector is primed for rapid growth.

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