Crypto RWA: the 4 best cryptos to watch in 2024

Cryptocurrencies are digital currencies.
However, this does not mean that they are not linked to real assets.
For example, RWA coins are cryptos that are backed by real assets.
Very different from Bitcoin orEthereum, these coins are a special category of the cryptocurrency market that is meeting with very strong success in 2024. Find out what RWA is, as well as the 4 best RWA cryptos to buy in 2024.

4 RWA cryptos to know in 2024 :

• Avalanche (AVAX);
• Realio Network (RIO) ;
• Goldfinch (GFI);
• Pendle (PENDLE).

What is a crypto RWA?

RWA stands for “Real World Assets”.
In French, RWA translates as “real world assets”.
A crypto RWA is a digital asset that operates using a blockchain.
Most coins, such as Bitcoin, are not backed by any external value and respond primarily to the law of supply and demand.
A crypto RWA, on the other hand, is linked to a real asset that may or may not be material, such as :  

• Real estate ;
• Gold ;
• A raw material ;
• Action;
• A work of art;
• Luxury goods (yachts, vehicles, etc.);
• A motto;
• An ETF-type financial product;
• Performance ;
• Etc.

  Through tokenization, RWA cryptos can be used to acquire a real asset or part of it.
To take a simple example, this could be a property worth €500,000 split into 500 RWA tokens worth €1,000.
A crypto RWA is a token that has a direct or indirect link to the RWA investment. For example, it could be a token native to a blockchain that serves as the infrastructure for tokenizing goods.
It can also be a token that participates directly in the fractioning of a real asset, as in the example above. The RWA sector is very popular with investors in 2024.
It has been particularly successful recently, with the arrival of well-known players such as BlackRock. The world’s largest asset management firm has created a tokenized “BUILD” fund with over $275 million in capitalization.
For analysts,the combination of blockchain and RWAs is a winner because it makes investing in these assets more accessible and transparent. What’s more, the fact that a crypto RWA is associated with a real asset limits the volatility of its price and makes it more tangible in the eyes of investors.
Unsurprisingly, the future of this market is bright.
For Citybank, for example, tokenization is expected to be a $5,000 billion market by 2030. RWA coins have become a category of their own in the crypto market, alongside decentralized applications (dApps), gaming, metavers, NFTs and more.
Today, the global capitalization of RWA cryptos exceeds $41 billion.
By way of comparison, this is as much as that of NFTs, a sector that has been around longer than RWA cryptos.

What are the advantages of RWA cryptos?

A real asset (such as real estate) can be purchased via a title deed.
However, acquiring them is a lengthy process involving many different players.
Crypto RWAs aim to simplify the purchase and exchange of these assets.
As a crypto, all transactions linked to buying or selling take place on the blockchain. So it’s much simpler and… more transparent! Another major advantage of RWA cryptos is that they facilitate access to certain real assets.
Thanks to tokenization, it is possible tobuy only a small fraction of the asset, thus opening up investment to all purses and helping to make finance more inclusive.

Top 4 RWA cryptos to buy in 2024

There are many RWA cryptos on the market today.
We have selected 4 RWA coins with high potential in 2024 below. The selection process took into account important criteria such as stability, growth potential and capacity for innovation.
The 4 projects presented below are very different in nature, purpose, size and the type of real estate considered. This allows you to grasp the full scope of the RWA crypto domain.  

Avalanche (AVAX)

Avalanche is an ecosystem made up of three blockchains (X, C and P).
The project’s native token, AVAX, is not a pure RWA crypto.
However, it does enable the operation of an infrastructure on which RWA projects are located. The C chain is layer 1, enabling the development of decentralized applications.
The project includes almost 500 dApps, some of which are RWA-related.
These include the Re platform, an RWA token for the insurance industry. Avalanche is an ambitious project that goes beyond RWA cryptos.
AVAX’s aim is to provide developers with several levels of blockchain.
This ecosystem is used for the development of RWA projects, but also DeFi, Gaming, metavers, etc. By investing in Avalanche, you are investing in a leading blockchain project with cutting-edge technology and numerous applications. Advantages ofbuying Avalanche (AVAX):

• Serious blockchain project, part of the top 20 in capitalization ;
• State-of-the-art technology ;
• Financing a blockchain infrastructure that enables the operation of certain RWA projects.

 

Realio Network (RIO)

 

Realio Network is a crypto project focused entirely on RWA investment, in this case in real estate.
It was launched in 2018 and its native token, RIO, went on the market in June 2020.
In the first instance, Realio Network focuses on “the investment, trading and operation of exclusive real estate”.
The platform brings into play 3 different tokens: RST (secure token), RIO (native or utility token) and RealioUSD (a stablecoin).
The Realio Network platform runs on the Stellar blockchain.
It is compatible with many other blockchains, including Ethereum (ETH), Algorand (ALGO), Fusion (FSN), Ravencoin (RVN) and the Binance Chain. Advantages of buying Realio Network (RIO) :

• Investment in a pure crypto RWA ;
• Largest crypto RWA in terms of capitalization.
• Major crypto project.

 

Goldfinch (GFI)

  The Goldfinch project was launched in July 2020 by people who had previously worked at Coinbase.
The project quickly succeeded in raising $25 million in funding from the likes of Andreessen Horowitz and Coinbase Ventures. Goldfinch is a DeFi protocol that aims to make access to loans more inclusive.
At present, many decentralized finance products offer crypto loans.
These solutions are very useful, especially for those who don’t have access to traditional banking services. For all that, DeFi loans require collateral to be deposited in the form of cryptocurrencies.
Goldfinch aims to change this process.
With the GFI protocol, collateral is RWAs, which opens up crypto lending to entities with no (or limited) crypto funds.
In this way, emerging markets can access credit solutions.
Users of the DeFi protocol can be individuals, but more often than not they are organizations or companies seeking financing.
Unsurprisingly, at present, the most active DeFi users or entities are from Kenya, Nigeria, Uganda and the Philippines. Advantages of buying Goldfinch (GFI):

• Investment in a product that combines DeFi and RWA ;
• A little-known project with strong growth potential;
• Helping to finance projects that make finance more inclusive.

 

Pendle (PENDLE)

 

Pendle is another project combining DeFi and RWA.
It runs on the Ethereum blockchain.
At the time of writing, Pendle’s TVL is $6.4 billion, placing it in the top 10 DeFi protocols, even ahead of MakerDAO. Pendle is a tool that simplifies the tokenization of assets.
The project received a major boost after Arthur Hayes, co-founder of BitMex, indicated that he had invested in Pendle. One of the highlights of the project is its use of Liquid Restaking Tokens (LRT).
Liquid Restaking Tokens Finance (LRTFi) is one of DeFi’s latest innovations.
When a user stakes, his tokens are locked.
But with Pendle, they receive LRTs equivalent to the amount of tokens staked. He can then use these LRTs to “restack” them in order to grow them and earn rewards.
Pendle is therefore a way of tokenizing returns.
LRTs are similar in principle to LSTs, Liquid Staking Tokens.
The main difference is that LRTs use the EigenLayer platform. Advantages of buying Pendle (PENDLE):

• Investment in a promising project that demonstrates a particular aspect of RWA investment with the tokenization of returns;
• Price of PENDLE token up sharply, +1,200% in one year;
• Top 10 DeFi protocols.

Summary of the 4 high-potential crypto RWAs in 2024

Crypto RWA	Capitalization (€)	Ranking	Price (€)	Number of tokens in circulation
Avalanche (AVAX)	12.6 billion	12	32	393 207 444
Realio Network (RIO)	10.5 million	1141	1,6	6 568 515
Goldfinch (GFI)	87 million	488	3	29 135 286
Pendle (PENDLE)	863 million	90	5,6	154 254 876

Conclusion

The crypto RWA sector is one of the latest market trends.
It has many arguments to convince investors.
For example, it allows crypto and blockchain to be “attached” to one (or more) real assets, known to investors.
These can be tangible, such as real estate or luxury goods, but also intangible , such as shares, yields, financial products and so on. With a market capitalization of over 41 billion, crypto RWAs are a very important market category, weighing more heavily than other less recent sectors such as gaming and metavers.
What’s more, renowned players such as BlackRock have already begun to invest in tokenized assets.
This is creating a buzz and opening the door to many investors who are still hesitating. So now is the perfect time to invest in RWA cryptos ! But which RWA token should you choose?
There are many different projects available today.
To make your choice, it’s important to learn how they work and what they’re used for. At present, Avalanche (AVAX), Realio Network (RIO), Goldfinch (GFI) and Pendle (PENDLE) are among the most promising RWA cryptos on the market.