Real-world asset tokenization (RWA) is an emerging technology, quickly revolutionizing the blockchain industry. These tokens act as an indication of ownership or evidence of physical assets in the actual world. They play an intermediary role in integrating traditional financial models with blockchain capabilities. There are several crypto projects that are forerunners into this innovative concept. In this article, we dive into five notable RWA tokens: AVAX, LINK, VET, MKR, and ONDO. Here we will discuss what their current performance looks like and what the future may hold for these projects.
1. Avalanche (AVAX)
Avalanche is famous for its fast and scalable blockchain of high throughput with low transaction fees and the time needed to confirm transactions. It supports multiple blockchains as well as it allows the development of more personalised smart contracts. More recently it has been at the forefront of decentralized finance (DeFi) and non-fungible tokens (NFT).
At press time, the price of the AVAX coin was $28.61. Its market cap was $11.6 billion. AVAX has had an impressive price trend in the past one week and registered an increment of 6.12%. The native consensus protocol of Avalanche, coupled with increasing partners, means that the project is poised for good growth. Avalanche has attracted more developers because of the low latency of the platform, and this may lift AVAX to fresh highs.
Avalanche has great DeFi support and has partnered with other large companies such as Deloitte. This positions it for continued growth. In the short term, AVAX could reclaim the $35 level. The long terms remain subject to the increasing participation from the DeFi space and scalability enhancements.
2. Chainlink (LINK)
Chainlink remains the industry leader when it comes to decentralized oracle networks. It generates securely timestamped feed to blockchain applications and offers data to smart contract execution. Due to its possibility to bridge Blockchains with off-chain data, Chainlink became crucial infrastructure in the DeFi space.
LINK’s value at the time of writing was $12.33. Its market cap was $7.8 billion. In the past week, LINK has experienced a 12.07% gain. This is an effect of the increasing attention and confidence towards its technology. Further growth of Chainlink will continue to depend on its ever-deepening connection with smart contracts for decentralized applications across various blockchains.
Currently, decentralized oracles are highly demanded. This positioned Chainlink to get a significant market. LINK price may surge to $15-$20, considering that Chainlink services are being adopted by developers in DeFi protocols and other projects.
3. VeChain (VET)
VeChain is an enterprise-class blockchain technology platform which targets to address supply chain and business issues. It relies on blockchain to enable transparency, track and increase efficiency in chain operations. VeChain is among the fastest-growing blockchain solutions providers in the RWA space. It has secured strategic partnerships with industry across luxury goods, agriculture and logistic sectors among others.
As of the time of writing, VET was priced at $0.02533. Its market cap was $2.05 billion. VET has experienced an increase of 8.38% in the past one week indicating it has gained adoption. The token plays an active role in the actualization of digitization and automation of business processes through blockchain with a focus being placed on supply chain management. Due to its massive adoption in traditional businesses, it has all the prospects of growing in the future.
VeChain is one of the tokens to watch because of its focus on the enterprise aspect of blockchain and especially supply chain management. Based on current trends, VET could soon climb to $0.030 or more, mainly due to new sectors integrating blockchain technology into real application.
4. Maker (MKR)
Maker is the governance token of the MakerDAO platform, which underpins the DAI stablecoin. Maker is one of the first lending platforms in DeFi and lets users borrow DAI stablecoins by using cryptocurrencies as collateral. Holders are responsible for voting procedures concerning stability fees and risk parameters.
At press time, MKR was valued at $1,655.53 per token. Its market cap was $1.4 billion. The coin has gained 4.81% over the course of the week showing a recovery trend. MakerDAO is solely dependent on the success of the DAI stablecoin. It continues to be popular with multiple projects within the DeFi sphere due to decentralization and stability of the asset.
The growth of stablecoins and their entry into more traditional segments could act as a driver for the growth of the MKR. In the short term, MKR could easily hit $1,800-$2,000 as long as DAI is widely adopted and utilized across the dApp ecosystem.
5. Ondo (ONDO)
Ondo is a DeFi protocol that deals with structured products such as fixed-income investments and shared risks. Through the tokenization of real world assets Ondo aims to introduce traditional finance into the DEFI space providing for relatively lesser risk involved. Ondo’s innovative products have attracted attention as they aim to provide services for institutional and retail investors.
At the time of writing, ONDO was valued at $0.7975. Its market cap was $1.1 billion. The token has significantly increased in price by 17.91% within the past week, showing increasing interest in it. Ondo will greatly benefit as more investors look for decentralized financing solutions that replicate existing conventional products.
Ondo’s potential is in the expansion of its network to incorporate more institutional entities seeking safe, high-return DeFi products. ONDO may rise above the $1 mark if the DeFi space maintains the same trajectory in the coming months.
Conclusion
Among the leading RWA tokens, Avalanche, Chainlink, VeChain, Maker and Ondo have the potential to benefit most from the upcoming revolution in real-world asset tokenization. Should more conventional industries and investors turn their attention to blockchain, these tokens could go a long way to help the integration of the digital assets and physical ones. Each of these tokens represents high growth potential. Investors should bear in mind the inherent volatility in the crypto market. More analysis and strategic decision-making will be necessary to work within this quickly shifting space.
