Onchain Real-World Assets Gaining Traction Amid Bitcoin Market Uncertainty

As Bitcoin’s price faces stagnation, onchain real-world assets (RWAs) are steadily gaining attention, with predictions of significant growth in total value locked (TVL) by 2025. The emergence of RWAs is seen as an appealing alternative for investors seeking stable, yield-generating assets amid the uncertainty in the global market and Bitcoin’s recent price fluctuations.

What are Onchain Real-World Assets?

Onchain RWAs refer to real-world assets like real estate, fine art, and financial products that are tokenized and represented on the blockchain. This process enhances liquidity and democratizes access, allowing a broader range of investors to engage with traditionally illiquid assets. These blockchain-based assets are gaining traction as an alternative investment vehicle, offering a new level of accessibility and trading opportunities.

Bitcoin’s Struggles May Propel RWA Growth

Bitcoin's price fell below the crucial $100,000 mark on February 4, driven by investor concerns over a potential trade war between the U.S. and China, sparked by newly imposed import tariffs. This price drop highlights the current uncertainty in the cryptocurrency market, with Bitcoin's lack of momentum driving interest toward more stable, predictable investments like RWAs.

Alexander Loktev, the chief revenue officer at P2P.org, an institutional staking and crypto infrastructure provider, believes Bitcoin’s ongoing stagnation could lead to significant growth in the RWA market in 2025. He points out that major financial institutions such as BlackRock and JPMorgan are increasingly embracing the tokenization of assets. According to Loktev, this momentum could push the TVL in the RWA market to $50 billion in 2025, marking a shift in the traditional finance (TradFi) sector’s view on digital assets.

“Traditional financial institutions are beginning to see tokenized assets as a vital bridge to decentralized finance (DeFi), driven by the demand for investments that offer more predictable yields,” Loktev said.

RWAs Set to Capture a Share of the $450 Trillion Global Asset Market

The potential for RWAs to capture even a small percentage of the global asset market is enormous. Marcin Kazmierczak, the co-founder and chief operating officer of blockchain oracle solution RedStone, notes that traditional finance oversees a staggering $450 trillion in global assets, with institutional investors managing roughly $100 trillion of that total. He estimates that even a modest 1% to 2% shift of these assets toward blockchain-based RWAs could drive explosive growth in the sector.

"Blockchain technology offers a more efficient, borderless, and composable infrastructure compared to legacy financial systems, which could fundamentally change capital allocation," Kazmierczak explained. As RWAs continue to gain traction, they may play a pivotal role in reshaping investment strategies and accelerating the adoption of blockchain technology in traditional finance.

Crypto Volatility Driving Institutional Interest in RWAs

The inherent volatility of the cryptocurrency market, highlighted by the recent $10 billion liquidation event, is expected to attract even more institutional investment into RWAs. Bhaji Illuminati, chief marketing officer at Centrifuge—a decentralized finance lending protocol focused on RWAs—points out that the wild price fluctuations in crypto markets underscore the value of stable, yield-generating assets.

“Huge swings in crypto prices serve as a constant reminder of the need for stable, income-producing assets in investment portfolios,” Illuminati said. "RWAs, particularly in fixed-income sectors, provide a solid hedge against crypto volatility and represent a long-term shift in capital allocation, focusing on real economic value rather than speculative assets."

The growing interest in RWAs is part of a broader trend toward integrating blockchain technology into traditional finance. Consulting firms project the RWA market could experience exponential growth in the coming years, potentially growing by 50 times by 2030 and reaching a market value of up to $30 trillion.

The Road Ahead for RWAs

With institutional adoption accelerating and blockchain infrastructure expanding, RWAs are positioning themselves as a central component of the future of finance. As traditional financial markets continue to explore and adopt tokenization, RWAs could serve as an increasingly attractive asset class for investors seeking stability, liquidity, and predictable returns.

The rapid growth and maturation of the RWA market could not only shift capital from traditional assets into blockchain-based investments but also help the cryptocurrency industry build deeper connections with the broader financial system. With more institutions and investors looking for ways to bridge the gap between traditional finance and decentralized markets, RWAs may well become one of the leading investment narratives of 2025.