Research Summary

The report discusses the increasing significance of tokenized real-world assets (RWAs) in the crypto market, the launch of ONDO, a governance token for Ondo Finance, and Avalanche Foundation’s $50M initiative for asset tokenization. It also covers changes in Bitcoin’s structural demand, Tether’s earnings, and ETF inflows. The report further highlights Solana’s growth as the top chain for stablecoin transfers and a decrease in on-chain activity.

Key Takeaways

Real World Assets Gaining Traction in Crypto Market

  • Tokenized RWAs: The report suggests that tokenized real-world assets could be a significant driver of crypto adoption in the future. If implemented and adopted effectively, the capital locked in RWAs could surpass that currently in DeFi.
  • ONDO’s Launch: Ondo Finance, a major project for tokenizing US Treasuries, launched its governance token, ONDO. The CEO of Ondo believes this could shape the future of on-chain finance.
  • Avalanche Vista: The Avalanche Foundation launched Avalanche Vista, a $50M initiative aimed at pioneering asset tokenization.

Bitcoin’s Structural Demand Changes

  • Bitcoin ETFs: With the approval of Bitcoin ETFs, the focus is shifting to BTC supply changes from the upcoming BTC halving. However, new developments could significantly alter BTC’s structural demand compared to previous years.
  • Tether’s Earnings: Tether is earning $1 Billion per quarter and is using a significant portion of that to purchase BTC.
  • ETF Inflows: Despite GBTC outflows pushing the price down, ETF inflows have been large and steady.

Solana’s Growth in Stablecoin Transfers

  • Top Chain for Stablecoin Transfers: Solana has become the largest chain for stablecoin transfers in USD volume. It now comprises 31% of stablecoin transfers, up from less than 1% six months ago.

Decrease in On-Chain Activity

  • DEX Volume: After months of growth, total DEX volume dipped over the past week, falling to its lowest point in over a month.
  • Active Blockchain Addresses: Total active blockchain addresses also dropped in recent days, falling below their lows earlier this month. This could be a proxy for overall interest and activity in the crypto market.

Actionable Insights

  • Monitor the Adoption of Tokenized RWAs: Given the potential of tokenized RWAs to drive crypto adoption, it would be beneficial to keep a close eye on their implementation and adoption.
  • Assess the Impact of Bitcoin ETFs: With the approval of Bitcoin ETFs, it’s crucial to evaluate their impact on BTC supply changes and structural demand.
  • Track Solana’s Performance: Given Solana’s significant growth in stablecoin transfers, tracking its performance could provide valuable insights into the stablecoin market.
  • Observe On-Chain Activity: The recent decrease in on-chain activity could indicate a shift in the crypto market. Monitoring these metrics could provide early indicators of market trends.

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