Crypto Market Slumps as 2025 Ends, but One Sector Defies the Downturn

The crypto market’s downward pattern continued immediately, with complete market capitalization falling 3.17% over the previous month amid persistent sell-offs. However, one sector has bucked the pattern: tokenized real-world property (RWAs).

The distributed asset worth has continued to climb, reaching a brand new all-time high regardless of unfavorable market circumstances.

Bitcoin Sell-Off Continues as RWA Sector Largely Unaffected 

According to knowledge from RWA.xyz, the sector now holds $19.06 billion in distributed asset worth. This represents a 4.59% appreciation over the previous month. 

At the similar time, the represented asset worth totals $414.6 billion, primarily pushed by the Canton Network’s administration of $395.2 billion in institutional property.

The variety of asset holders has additionally elevated, rising 7.23% to 583,821. Stablecoins proceed to dominate the sector, with a complete worth of $299.17 billion and 212.54 million holders. This represents a 4.12% enhance over the similar interval.

Kevin Rusher, founding father of RAAC, a RWA lending and borrowing ecosystem, stated that market consideration inside the crypto sector stays largely targeted on Bitcoin’s value, which has continued to decline. He famous that latest developments recommend selling pressure may persist.

“As standard, most consideration inside the crypto sector is being paid to the value of bitcoin, which continues to slip its approach out of 2025 as if glued to a sled….Yesterday’s information that Strategy has paused BTC shopping for and put over $700 million into money signifies, this promoting is more likely to proceed. Inflows into bitcoin additionally declined markedly this yr in comparison with final yr, at $27.2 billion in comparison with $41.6 billion in 2024,” Rusher said.

Tokenized Gold Emerges as a Key Growth Driver 

Despite this broader weak point, Rusher emphasised that promoting strain has not spilled over into the tokenized RWA sector. He identified that the section stays largely overlooked by much of the crypto market, even as it delivers a few of the strongest returns this yr. 

The progress has been fueled partly by a world surge in demand for gold. The valuable metallic continues to hit new all-time highs. Tokenized variations of the metallic have seen significantly sturdy momentum in response.

“Indeed, tokenized gold is up 227% from $1 billion to over $3.27 billion yr thus far, whereas its sector – RWA commodities – is one in every of the yr’s key progress spots. Beginning 2025 with nothing greater than 4 gold merchandise, this sector is ending it with 15 merchandise unfold throughout not simply gold, but now additionally oil, wheat, platinum, soy, and extra,” the government highlighted.

Additionally, Shehram Khattak, General Counsel at Trust Wallet, famous that tokenized gold may emerge as a robust competitor to Bitcoin. 

“We’re in a state of affairs the place you’re beginning to consider, like, real-world property, for instance, tokenizing property, when you get tokenized gold, and if it’s tokenized in an applicable approach, that’s an enormous caveat. Because Bitcoin is closely used as a retailer of worth. And if that’s the case, then tokenized gold turns into fairly a heavy competitor to Bitcoin,” he remarked.

Meanwhile, in response to Rusher, the growth in the sector is being pushed not simply by vital institutional demand but additionally by increasing retail participation. He famous that retail buyers are turning to steady property on-chain, slightly than exiting the market totally in periods of heightened volatility.

“The risky yr that we’ve seen has actually formed the sector and made it a sturdy and fertile progress house. And that is an extremely optimistic indicator for the progress of crypto as an entire as RWA’s will present a agency footing meaning liquidity will keep in crypto even when time will get powerful. RWA’s are completely the way forward for crypto and deserve rather more consideration to,” he added.

Tokenization Market Could Reach $100 Billion by 2026

Looking forward, Jesse Knutson, Head of Operations at Bitfinex Securities, has forecasted that the tokenization market as an entire will develop to no less than $100 billion by the finish of 2026.

He expects tokenized fixed-income merchandise to stay the dominant section in the close to time period, whereas tokenized equities steadily enhance their share of complete tokenized property. 

Knutson added that the continued tokenization of equities is more likely to appeal to a bigger variety of retail individuals, serving to to broaden and deepen the investor base for tokenized property.

“Tokenization can open up regulated entry to funding alternatives like micro financing bonds, litigation finance merchandise, or Bitcoin hashrate contracts, property that aren’t obtainable on conventional markets. We anticipate this momentum to proceed into 2026, with extra various property, revolutionary Bitcoin-mining backed mounted revenue merchandise, tokenised ETFs,” he talked about to BeInCrypto.

Previously, Plume CEO Chris Yin additionally projected a 10–20x expansion in each worth and customers in 2026, even beneath conservative assumptions. Thus, as the RWA house continues to increase, its efficiency in 2026 will probably be a key trend to watch.

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