Having started the year outside the top ten, real-world assets (RWAs) are at the center of DeFi now! Here’s the rundown.
Not a niche anymore
RWAs have overtaken DEXs to become the fifth-largest category by TVL, holding over $17 billion.
Source: DeFiLlama
But where is this growth coming from?
Source: DeFiLlama
The RWA market is increasingly dominated by a small group of protocols. Tether Gold, Securitize, Paxos Gold, Circle’s USYC, and Ondo collectively account for the majority. Smaller players make up a shrinking share.
Since early 2025, their combined dominance has steadily increased.
One chain dominates it all: Ethereum [ETH].
Over $12 billion of RWA value now sits on the Ethereum Mainnet. That’s more than half of the entire market. After briefly losing share to newer chains, Ethereum is regaining dominance again.
Source: rwa.xyz
The change is showing up in the returns
RWAs are the most profitable crypto narrative of 2025, per CoinGecko. They’ve delivered 185.8% YTD, far ahead of every other sector.
Source: CoinGecko
Only Layer 1s (80.3%) and “Made in USA” tokens (30.6%) managed to stay green, while DeFi, DEXs, AI, and gaming all posted losses.
A closer look will tell you that RWA’s performance was helped by outsized winners like Keeta Network (+1,794.9%), Zebec (+217.3%), and Maple Finance (+123%).
That said, returns are far lower than 2024’s explosive 819% run. The bracket is maturing, perhaps.
Here’s more…
Tokenization is creating balance-sheet grade commodities.
Source: DeFiLlama
Gold-backed tokens dominate, with Tether Gold ($2.29B) and Paxos Gold ($1.6B) leading by a wide margin. These assets check all the boxes institutions care about, which are redeemability, attestations, custody, and liquidity.
Source: Token Terminal
At the same time, tokenized equities are scaling fast too. Market cap has surged past $1.2 billion, hitting an ATH.
Final Thoughts
- RWAs have surged to over $17B in TVL and now rank as DeFi’s fifth-largest sector.
- Ethereum hosts $12B+ in RWAs and tokenized stocks have hit a $1.2B ATH.
