Research Summary

The report discusses Plume, a blockchain platform that combines Real World Assets (RWA) and DA Modular, with a team from Binance, Coinbase, and LayerZero. The platform is gaining traction with over a dozen projects deploying on its testnet and is expected to address major gaps in the RWA market.

Key Takeaways

Plume’s Unique Proposition

  • Combining RWA and DA Modular: Plume is the first blockchain platform to combine Real World Assets (RWA) and DA Modular. It aims to address the major gaps in the RWA market, including composability, operational efficiency of onboarding/deploying, and liquidity.
  • Massive Traction: Plume has gained significant traction, with over a dozen projects already deploying on its testnet. The platform’s follower count grew from 6k to 24k in just three days following a team announcement.

Market Potential

  • Rapidly Growing RWA Market: The RWA market presents huge opportunities, with a market size of $5B and rapid growth expected in 2023. The total market size for active loans alone is $1.5B, currently standing at $500M, indicating a potential 3x growth.
  • Room for Growth: The insights suggest that the RWA market has a lot of room for growth. A Layer 2 (L2) solution focused on RWA could yield significant positive expected value (EV).

Plume’s Approach

  • Layer 2 Solution: Plume represents a Layer 2 solution tailored for Real World Assets (RWA) along with new on-chain capital. It incorporates asset tokenization and capital/compliance software directly into the chain, establishing a secure and cost-efficient ecosystem.
  • Compliant L2: Plume is a compliant L2 with many native integrations with RWA required tech, making it easier for developers and investors. It supports the trading of RWA assets with its DeFi ecosystem.

Team and Future Developments

  • Experienced Team: The Plume team comprises individuals with extensive industry experience, including Coinbase, Binance, dYdX, Robinhood Crypto, Daiwa Securities, and Scale Venture Partners.
  • Upcoming Developments: Over the next two weeks, Plume is expected to make several announcements regarding project developments. One of the first developments is Perper Network, which is building on Plume.

Actionable Insights

  • Monitor Plume’s Progress: Given the significant traction and potential growth in the RWA market, it would be beneficial to keep a close eye on Plume’s developments and growth.
  • Explore Plume’s Ecosystem: With Plume’s unique proposition of combining RWA and DA Modular, it could be worthwhile to explore the platform’s ecosystem and understand its potential impact on the blockchain and RWA markets.
  • Consider Plume’s Incentives: Plume is offering incentives for projects that want to build on its platform. This could present opportunities for developers and investors interested in the RWA and blockchain space.

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