Real-World Asset protocols outperform DeFi blue-chips due to tokenization wave
Traditional finance companies are boosting their engagement with Ethereum-based real-world asset protocols, resulting in RWAs outperforming DeFi blue chips. Real-world asset (RWA) protocols have become a hot trend within DeFi circles. A real-world asset (RWA) protocol is a decentralized application that allows entities to tokenize and trade real-world assets. These assets range from stocks and government bonds to real estate and commodities. They are also known as asset tokenization protocols. DeFi provides certain advantages over TradFi by making the smart contracts transparent and enabling a wide degree of financialization of these assets by making them divisible, transferable, and tradable on decentralized platforms. The top uncollateralized lending protocols for institutions in TrueFi and Maple increased by 26.6% and 117.8% in 2023. Centrifuge, a real-world asset tokenization platform, surged by 32% year-to-date. In comparison, the gains recorded by the DeFi pulse index (DPI) in...