Introduction
An exciting shift is taking place in the ever-changing world of finance, where new technology developments are combined with long-standing investing strategies. The biggest asset manager in the world, BlackRock, is leading the charge of this revolutionary change by teaming up with Securitize to tokenize $10 trillion worth of assets. This groundbreaking project introduces the age of Real-World Assets (RWA) token’s BlackRock’s strategic emphasis on technology. It also signifies a watershed event in the history of finance.
Tokenizing uses blockchain technology to improve accessibility, transparency, and liquidity for various assets, including bonds and real estate. Come with us as we investigate how technology and finance are interacting to identify the leading RWA tokens that will change the face of investing in the years to come (2024 and beyond).
This article takes a look at the top 5 RWA cryptocurrency investments for the year 2024. Keep reading to learn about some RWA cryptocurrencies that are now underappreciated but have the potential to soar in the next month’s market.
What are RWA Altcoins?
Real-world asset altcoins are recognized as the evolution of the existing cryptos in the market. These tokens also help with tokenized assets, which means that physical assets are converted to digital tokens on the blockchain.
By bridging the gap between traditional assets and blockchain technology, RWA tokenizations have a plethora of benefits, including:
- Enhanced Liquidity and Accessibility: First, it is important to note that RWA tokenization helps enhance liquidity and the availability of rather non-liquid assets. Tokenization converts the assets that were once more difficult to trade in the traditional financial markets and makes them easily interchangeable in the digital markets. The increase in liquidity in the equity market impacts the market structure and market access since it presents new investment opportunities to wide speculators previously locked out of high-end stakes.
- Global Investment Opportunities: RWA tokens do not limit investors by space or finance, providing global investment opportunities. Thanks to the opportunity to access assets located on the blockchain, RWA tokens provide free and liberated cross-border commerce without the limits of the existing finance system. These globalization investment opportunities promote diversification and risk management for global investor.
- Creation of New Markets: This adds to the evolving concept of RWA tokens, a distinct market creation in the blockchain and cryptocurrency industry. It is sponsored by RWA tokens, raw materials, real estate, art pieces, or other tangible goods to create new financial instruments and funds. These new markets draw in institutions, visionary small investors, and asset owners who support innovation and development in the digital asset markets.
Top 5 Real-world Assets for 2024
1. Polymesh (POLYX)
Among the top RWA crypto initiatives aimed at the institutional market is Polymesh. Regulated assets, such as conventional securities, are the intended users of its native blockchain system. Stocks from various financial markets, bonds, exchange-traded funds, and other assets fall under this category. Ensuring conformity with regulations is a top priority.
Because polymesh is a secondary marketplace, more liquidity is accessible, even in traditionally illiquid markets like bonds. The POLYX token, which supports the Polymesh ecosystem, has seen a 165% gain in value over the last year. The current price level is 46% lower than its all-time high. With a market valuation of $405 million, Polymesh has a lot of room to grow.
2. TrueFi (TRU)
One of the top low-cap crypto projects in the RWA area is TrueFi, with a market value of roughly $222,843,290 million. Crypto loans are their forte, catering to both people and corporations. Importantly, TrueFi provides loans without collateral, unlike conventional DeFi lending arrangements. As a result, token deposits are unnecessary for loan approval.
A portion of the interest that is paid back goes to the lender. To prevent any defaults, the money is re-injected into the TrueFi system. TRU, TrueFi’s native token, debuted in the year 2021. When trading cryptocurrencies, it’s one of the riskiest bets. Truffle has produced around a 145% increase in the last year while being 94% behind all-time highs.
3. Algorand (ALGO)
Algorand is a blockchain platform for people working in the entertainment and arts sectors. Take, for example, a self-employed artist who focuses on producing high-quality works of art. Artists may now tokenize tangible artwork on the blockchain using Algorand.
This ensures ownership and allows the artist to sell and promote their work. Musicians who want to safeguard their work might use the same reasoning. And it doesn’t even include writers of audiobooks and e-books who are interested in going digital. In addition to tradable assets, stablecoins, digital tokens, and real estate, Algorand is well-suited to various tokenization.
To guarantee that non-technical producers are taken care of, Algorand has worked with several Web3 platforms. Launched in mid-2019, ALGO is the native RWA currency of Algorand. With a market worth of $1,278,201,747, ALGO is trading at a discount of about 95% from its initial launch price. The value of Algorand has climbed by over 15% during the last 12 months.
4. ONDO (ONDO)
ONDO is gradually rising to prominence as one of the leading developing cryptocurrencies in the Real-World Assets (RWA) tokenization. Built on blockchain technology, Ondo will change how assets are tokens, providing investors access to possibilities like never before.
The investor gets the interest payments that are generated by the mortgage-backed securities. Just over $1.8 billion is the market value of its native cryptocurrency, ONDO. With a 380% gain in value over the last 12 months, Ondo is now one of the best RWA investments.
5. Creditcoin (CTC)
Creditcoin is the last cryptocurrency in this RWA list. This neglected initiative is laying the groundwork for a credit network for developing nations. It uses the blockchain system, which directly decentralizes ink borrowers and lenders. Applying for a loan, receiving funds, and paying them back are all acts that are recorded in the blockchain ledger.
Take the hypothetical case of a borrower requesting Bitcoin as an example. It would be ideal if the borrower could pay for the loan using Ethereum rather than trading currencies. Creditcoin can easily meet all of these requirements. The current market valuation of Creditcoin is less than $208,809,260. The value of its native coin, CTC, has surged by more than 90% in the last 12 months.
How to Buy RWA Tokens on CoinEx?
Here’s a step-by-step guide on how to buy RWA tokens on CoinEx:
- Create an Account: Sign up on CoinEx. This will involve submitting an email address and creating a password. You may also have to confirm your registration by entering the code, which will be sent to your email address. Complete the KYC.
- Buy RWA Tokens: First, deposit funds into your CoinEx trading account. Upon storing your money, you can immediately purchase the RWA tokens. Navigate through the ‘Markets’ tab and type in ‘RWA’ in the search bar. If clicked on, it will open a new window in the trading interface. It allows defining the quantity of RWA that has to be purchased and the price offered for one token. After getting the desired order, click on ‘Order RWA.’
- Confirm Your Purchase: You will be asked to proceed when you click the ‘Buy RWA’ button. Double-check all the provided information before agreeing to confirm the formed pair.
Conclusion
The RWA crypto space could quickly emerge in the global marketplace, reaching billions and, potentially, trillions of dollars in market size. Tokenization is an applicable concept to every industry, ranging from real estate and barter to real currency and art loan and lending. However, it should be noted that doing so requires some caution, as with any investment.
More guides to cryptocurrency and related news can be found on CoinEx. Join our mailing list for information on new ICOs and tokens.
