Crypto market reclaims $3.8T – RWA sector surges, but ONE token falls short

Key Takeaways 

The total crypto market cap reclaimed $3.8 trillion. RWA is the top-performing category, up 6.9%. KTA, INJ and XLM lead this sector by gains. Will this continue for the rest of the week?

The total crypto market reclaimed the $3.8 trillion mark on the 4th of August, recovering from a dip below $3.70 trillion.

Market cap rose 2.3% in 24 hours, marking a short-term break from recent corrections.

Among all categories, the Real World Asset (RWA) crypto sector led by gains averaging 6.9% as of the 4th of August. Naturally, questions followed—was this just a flash rally, or the start of something bigger?

Top-performing RWA tokens

Stellar [XLM], Injective [INJ], and Keeta [KTA] led the RWA rally, notching gains of 9.34%, 7.16%, and 7.09% respectively, at press time.

Additionally, Algorand [ALGO], Chainlink [LINK], Quant [QNT] and XDC Network [XDC] appeared in this list as well.

Having said that, Ondo Finance [ONDO]—despite its dominance in the RWA narrative—rose only 2.56%, cooling off after headlines last week.

Source: Coingecko

This attention to RWA tokens likely stemmed from the recent White House report which spotlighted ONDO for its tokenization potential. In fact, ONDO’s focus on institutional-grade RWA tokenization has made it a unique player in this niche.

Source: X

But are these gains sustainable, or just a reactive spike?

Price analysis of KTA, XLM and ONDO

Focusing on the top caps, Keeta, XLM, and ONDO were the most stable in terms of fluctuations.

Keeta’s [KTA] price closed at $1.07, trading above the middle Bollinger Band, signaling strength as of the 4th of August. Notably, the recent pullback to $0.91 appears to have served as a retest before this rebound.

The On Balance Volume sat at 6.341 million, showing early signs of accumulation, per TradingView.

Source: TradingView

Stellar traded at $0.4083, sitting just above its SuperTrend support at $0.4042. While the price broke above a short-term trendline, it began showing signs of local weakness on the hourly chart.

Since the 25th of July, the altcoin had been in a broader downtrend. Naturally, if the hourly flips bearish, this rally might pause.

Source: TradingView

Despite being the third-largest RWA token by market cap, ONDO only posted a 2.56% gain as of 4 August. Compared to others, the token underperformed, though its fundamentals remain strong.

Source: CoinMarketCap

Final take

In conclusion, ONDO stood the chance of leading this sector despite the modest gains. Chainlink and Stellar were not entirely focused on tokenization, thus their diversification could also be a boost.

But with August’s reputation for volatility, traders may remain cautious.

Even so, for risk-tolerant investors, this period is often viewed as a time to accumulate ahead of Q4 rallies.