Key Takeaways
How has RWA and memecoin sectors performed recently?
Memecoins saw massive outflows, while RWA showed resilience.
Will investors dump memecoins for RWA?
Most likely, according to investment fund flow trends this year.
The overall investment activity in the crypto has slowed 11% over the past 12-month period. But there has been noteworthy interest in real-world assets (RWA) tokenization space.
According to Crypto Rank, the segment saw about 14% surge in investment fund flows.
Source: CryptoRank
In the past six months, AI has attracted the most capital, followed by payments’ ecosystem players like Stripe’s bet on Tempo for stablecoin rails.
Developer tools came in third, while RWA nearly rivaled Binance Alpha projects.
In other words, investors were betting on a potential growth in the tokenization sector.
Are memecoins losing steam to RWA?
A similar market interest was evident on the trading side of the market.
According to aggregated data from Coin Ank, memecoins recorded one of the largest outflows worth over $1.18 billion in the past 30 days of trading. That’s only in the Spot market.
Source: Coin Ank/AMBCrypto
In the Futures market, memecoins bled 3x much capital, with over $6B in Outflows. By contrast, in RWA, there saw $11 million in Spot Outflows over the same period.
It implied RWA didn’t record a major sell-off compared to memecoins.
But Binance and Launchpools topped in traders interest, reinforcing the data from Crypto Rank.
RWA growth
Memecoins have been a staple for traders seeking short-term and highly speculative plates. Unfortunately, some have ended up being rug pulls.
But, RWA products, like tokenized gold or on-chain stocks, can be held for a little longer by users.
These are offerings that allow users to get an indirect exposure to an underlying physical asset like U.S. equities, but via on-chain platforms.
The top tech stocks? Even the successful but pre-IPO start-ups, like SpaceX, are being covered in some RWA providers.
As of October, major players, including Ondo [Ondo] Finance and Coinbase, have accelerated their tokenized stocks and ETFs (exchange traded funds) offerings.
Excluding stablecoins, the RWA sector has grown 10% in the past 30 days of trading. Private credit is the most dominant after stablecoins. On-chain stocks, which are picking up, ranks fifth in terms of growth.
Source: RWA.xyz
As of press time, there was about $631M worth of equities held on-chain. If the trend continues in the next few years, RWA could surpass memecoins, especially for mid and long-term investors.