What impact will BlackRock’s entry into the RWA field bring?

Original title: What impact will BlackRock’s entry into the RWA field bring? List of 8 low-market capitalization projects worthy of attention in the RWA sector

Many people are familiar with BlackRock, the world’s largest asset management and consulting company. Under its leadership, the industry saw the launch of the long-awaited Bitcoin spot trading fund (ETF) in January this year. The adoption of the Bitcoin spot ETF opened a new chapter in the development of the crypto market and spurred a new upward trend in the entire crypto market.

Many people may still remember that on January 11, the SEC announced its official approval of 11 spot Bitcoin ETFs, including BlackRock. After this news was released, Bitcoin surged higher in a short period of time, rising to more than 49,000 US dollars. After that, Bitcoin also started an almost spiral upward process. In less than three months, it broke through ATH, and the price reached as high as $73,000.

According to a recent analysis by Forbes, although BlackRock does not directly own any Bitcoin, its current 5.53% stake in MicroStrategy (MicroStrategy currently has approximately more than 120,000 Bitcoins) is equivalent to indirect ownership. With more than 6,600 Bitcoins, BlackRock has become one of the largest institutional holders of Bitcoin.

Moreover, BlackRock invested US$384 million in four Bitcoin mining companies in August last year (2023). In addition to this, they have partnerships with some large crypto players such as Coinbase and Circle.

It can be said that as traditional large institutions like BlackRock continue to increase their investment, the crypto market seems to have changed from a completely speculative market to a long-term financial market that is in line with the strategic investment of large institutions.

1. BlackRock Enters the RWA Field

As recall, we had listed AI, GameFi, and RWA last year as the three narrative areas that should be focused on in 2024. Many projects in the AI-related sector have experienced a relatively good increase in the past, and now this upward trend seems to be slowly starting to spread to the RWA sector. As shown below.

One of the big drivers of this spread could be BlackRock’s announcement of a fund on the Ethereum blockchain. On March 21, BlackRock launched its first tokenized fund issued on a public blockchain, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL). BUIDL will subscribe to the fund through Securitize, offering accredited investors the opportunity to earn U.S. dollar income. The fund invests 100% of total assets in cash, U.S. Treasuries, and repurchase agreements, allowing investors to earn income while holding tokens on the blockchain.

The RWA sector has actually been ignored by many people before. Looking at it from the market capitalization’s perspective, the current total market cap of the entire RWA sector is only US$8.2 billion (the sum of the market cap ​​of 111 RWA-related project tokens in CoinGecko) , and the market cap of $DOGE coin alone is currently US$26.5 billion, which is equivalent to more than three times the entire RWA sector.

But with giants like BlackRock officially announcing their involvement, the current RWA appears to have become the second most popular narrative this cycle, just behind Solana Memecoin. BlackRock CEO Larry Fink also publicly expressed in a recent interview that the tokenization of every financial asset is the future direction of development.

Additionally, some forecast data suggest that the overall market size of RWA could reach US$10 trillion by 2030. This highlights the development potential and prospects of RWA, as shown below.

In addition to the increase in investment by large institutions and market expectations, let us briefly look at some of the current basic data of RWA from another angle, such as:

Search trends for RWA are currently on the rise, indicating that more and more people are paying attention to this field. Through Google Trends, we can see that the global search volume of Solana is showing a downward trend, while the global search volume of RWA is rising rapidly. As shown below.

We can also see from on-chain data that on the Ethereum network alone, there are currently more than 77,000 people holding RWA-related tokens, and this number has increased by 60% since the beginning of 2024. As shown below.

Furthermore, remember that Ethereum had a significant proposal last year (2023). The Ethereum community decided to enhance the ERC-3643 standard and upgrade it to a recognized standard for RWA tokenization.

In September of last year, we dedicated an article to introduce the ERC3643 protocol, and also stated in the article: The ERC-3643 standard is not just a technical specification, it is also a powerful tool that can release new possibilities in the field of asset management. It can ensure the compliance and security of token transactions, pave the way for the future, and allow real-world assets to be managed and transferred as easily and efficiently as digital assets.

In general, whether it’s based on institutions increasing their investments, market expectations, or current data performance, all can somewhat indicate that 2024-2025 might become an important milestone in the development of RWA.

2.RWA Sector Project List

In Hua Li Huawai’s previous articles, we have actually sorted out and introduced many projects in the RWA field to you. We will list these directly at the bottom of this article.

Currently, CoinGecko has included a total of 111 RWA projects, and CoinMarketCap has included a total of 119 RWA projects. Next, we will give you a simple list of some RWA-related projects that are worthy of attention in the near future based on different market value perspectives for your further study and understanding.

The basic dimensions of this screening project include:

• Projects with a market capitalization of less than US$100 million

• And the topic score of X platform is not less than 200 points (that is, projects with high social platform attention and project community activity)

• We have mentioned or introduced in our previous articles (i.e. projects that we were optimistic about in out previous articles)

8 RWA projects with current market capitalization below $100 million:

Boson Protocol (BOSON), US$90 million, 949 points, mentioned twice in our historical articles

Polytrade(TRADE), US$74 million, 481 points, mentioned 5 times in our historical articles

Swarm Markets(SMT), US$67 million, 377 points, mentioned 3 times in our historical articles

StrikeX(STRX), US$65 million, 247 points, mentioned 1 time in our historical articles

Blocksquare(BST), US$34 million, 318 points, mentioned 3 times in our historical articles

Soil(SOIL), $26 million, 214 points, mentioned 1 time in our historical articles

Landshare(LAND), 17 million US dollars, 242 points, mentioned 1 time in our historical articles

LandX(LNDX), US$16 million, 497 points, mentioned 4 times in our historical articles

Regarding the topic score of the X platform, this score is queried using on-chain tools. The specific score is mainly based on objective statistical indicators and the interests of important community participants. Simply put, the more well-known the crypto figures, projects, and funders who follow this account are, the higher the score of this account will be. According to experience, over 200 points is a good indicator. As shown below：

If you have a higher risk appetite, you can consider focusing on the low-market capitalization projects above. Otherwise, you can just focus on some high market value projects. Below we will list a few additional high market value projects for you.

11 RWA projects with market capitalization greater than US$100 million:

Ondo (ONDO), US$1.281 billion, mentioned 5 times in our historical articles

Polymesh (POLYX), US$608 million, mentioned 1 time in our historical articles

Centrifuge (CFG), US$513 million, mentioned 10 times in our historical articles

Pendle (PENDLE), US$391 million, mentioned 33 times in our historical articles

Creditcoin (CTC), US$332 million, mentioned 1 time in our historical articles

Goldfinch (GFI), US$299 million, mentioned 8 times in our historical articles

Dusk (DUSK), US$286 million, mentioned 1 time in in our historical articles

TokenFi (TOKEN), US$257 million, mentioned 1 time in our historical articles

Nexera (NXRA), US$203 million, mentioned 1 time in our historical articles

Realio (RIO), US$136 million, mentioned 11 times in our historical articles

Maple (MPL), US$115 million, mentioned 13 times in our historical articles

3. List of RWA Related Articles

2023/12/22 RWA may become one of the leading factors in the bull market in 2024. What other RWA projects are worthy of attention in the near future?

Summary of this article:

• Four reasons to be optimistic about the RWA sector

• Introduction to 20 RWA projects

2023/11/28 The RWA protocol TVL has increased 8 times this year. What are the new RWA projects worthy of attention in the near future?

Summary of this article:

• Some data on RWA and 9 major categories

• Introduction to 10 RWA projects

2023/11/13 Are you still ignoring AVAX? Avalanche is accelerating its own development and progress in the RWA field

Summary of this article:

• Outlined some of Avalanche’s progress in the RWA field

2023/9/4 What is T-REX protocol ERC3643? Will the ERC3643 standard become popular with the RWA concept?

2023/8/30 The TVL of the RWA industry has increased tenfold since this year, and more and more DeFi protocols are getting involved in the RWA business.

Summary of this article:

• Development of Maple, Pendle, FraX finance projects in RWA

2023/8/11 The current status of the RWA industry, RWA sub-fields that need attention and the future development potential of RWA

Summary of this article:

• The basic concept of RWA, the current status of RWA industry,

• Sub-fields that RWA needs to focus on include US Treasurys, Private Credit, and Real Estate

• Future potential of RWA

2023/4/2 What is RWA? Analysis of RWA potential projects worthy of attention in the crypto field in 2023

Summary of this article:

• RWA concepts and data

• Introduction to some RWA projects, including GoldFinch, Centrifuge, TrueFi, Maple Finance, Ondo Finance, RealT, MakerDAO

• Risks that RWA may face

2023/3/5 RWA in DeFi: An undervalued crypto market segment is on the rise

Summary of this article:

-Private Credit, including asset-backed private credit (representative project Centrifuge), unsecured private credit (representative projects Maple Finance, TrueFiDAO, Clearpool)

• Public Credit, representative projects Ondo Finance and BondbloX Bond

• RWA new project list, LandX Finance, HOME Coin, Backed Finance, Securitize

2023/1/25 What will happen if DeFi and TradFi are combined? Analysis of blockchain lending protocol and RWA development status

Summary of this article:

• The difference between DeFi and TradFi

• Some data about the RWA project

1. Review of RWA narrative articles

2024/1/1 2024 will be an important turning point, and the crypto market may usher in a new round of huge growth cycle

Including RWA, AI, GameFi, etc.

2023/12/16 What new narratives are likely to explode in 2024-2025? Methods and tools for finding potential projects

Including RWA, AI, GameFi, etc.

2023/12/1 The next bull run could be the crypto market’s last chance for massive growth

Including RWA, AI, GameFi, etc.

2023/11/15 Before the crypto bull market arrives, what other tracks and corresponding projects deserve continued attention?

Including RWA, AI, etc.

2023/10/8 5 popular narratives and corresponding potential projects worthy of attention in the 2023-2024 crypto market

Including RWA etc.

2023/9/25 Three major tracks and corresponding potential projects where the next round of crypto bull market may break out

Including RWA, GameFi, AI, etc.

2023/9/8 Before the crypto bull market arrives, what other areas and projects are worth paying close attention to?

Including RWA, GameFi, AI, etc.

2023/5/12 Analysis of 9 areas worthy of attention in the crypto market in 2023 and corresponding potential projects

Including AI, RWA, GameFi, etc.

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