Don't want to trade it yourself?
Our desk runs DEX portfolios on profit share.
- ETH-USD
- SOL-USD
- NVDA
Over the 30-day period ending on Aug. 19, the sum of tokenized real-world assets (RWAs) on Solana (CRYPTO: SOL) saw $263 million in capital inflows, while the same category on Ethereum (CRYPTO: ETH) saw outflows of $337 million. Since tokenization is the process of representing an asset like a stock or bond as a crypto token, those flows indicate that real value is moving across blockchains.
There’s a $600 million swing between Solana’s inflows and Ethereum’s outflows. I’m not saying that investors moved their assets directly from one blockchain to another, but the opposite trends are real.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »
Given Ethereum’s position as the incumbent champion in the tokenized asset space, Solana’s strong performance is a clear victory for it as a challenger. I predict that the chain will continue to one-up Ethereum in tokenized assets moving forward, especially in two key segments. Here’s why.
To the victor go the spoils?
As of Aug. 19, Ethereum has $17.2 billion in tradeable tokenized assets on its chain, whereas Solana has $3.8 billion.
Solana’s base grew by 10.6% over the 30-day period ending Aug. 19, whereas Ethereum’s only rose 1.3%. Those totals can climb even when flows are negative, since a chain’s value also reflects yield and price changes in the assets it already hosts. So despite being a much smaller network in terms of its market cap and its base of tokenized assets, Solana grew much faster.
Tokenized stocks and bonds, particularly Treasury bonds, are where the chain’s fast transaction speeds and low transaction costs make Solana shine the most.
Its base of tokenized Treasuries grew by 16.1% over the last 30 days alone, reaching $1.2 billion. Growth at that clip is not realistic for the segment’s far bigger incumbents. Treasuries are a critical asset for chain economies, as they’re cash-equivalent assets that institutional investors hold and transact with in vast volumes.
Without an ample supply available on a given network, those institutions can’t work in the size they prefer, so it discourages them from managing their assets there. This also contributes to the capital-begets-more-capital effect, wherein blockchains with ample institution-demanded re, in turn, brings more of those in-demand re
Source: finance.yahoo.com