Analysis: Blockchain fragmentation could cost the RWA market billions of dollars annually.

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According to ChainCatcher, citing TheDefiant, a recent study by data analytics platform RWAio found that the fragmentation of blockchain networks causes a loss of $600 million to $1.3 billion in value to the RWA market annually. Currently, the total value of RWA in circulation (including private credit, US Treasury bonds, and commodities) exceeds $36 billion.

RWAio discovered that the same asset often trades at different prices on different blockchains, with price differences ranging from 1% to 3%. Furthermore, due to transaction fees and slippage, transferring assets between different chains can result in investors losing 2% to 5% per transaction. Currently, Ethereum holds 52% of all RWA tokenized value, while Polygon holds 62% of RWA tokenized bonds.

According to forecasts, if the tokenized asset market reaches $16 trillion to $30 trillion by 2030, the annual losses could reach $30 billion to $75 billion.

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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