Is Messari’s Reported $8B TVL In RWA Protocol Similar To Others?

Messari Crypto, a blockchain analytics firm, has recently shared a report. The report shows a 60% growth in total value locked (TVL) across real-world asset tokenization (RWA) since February of this year.

On May 1, blockchain analytics and research firm Messari wrote on X that TVL for RWL protocols had increased to almost $8 Billion as of April 26.

Over the past year, RWA protocols have seen a remarkable resurgence, with their TVL soaring to nearly $8 billion, driven by a market preference for debt-based, high-yield investments.

✍️ @SteimetzKinji provides insights in the latest Messari Pro report: https://t.co/GeDgqu3hkW pic.twitter.com/zKgyXcRoMU

— Messari (@MessariCrypto) April 30, 2024

As per the report, real-world asset tokenization protocols have grown tremendously over the last year, with total value locked for the sector reaching an all-time high.

Driver Of Growth For TVL

Messari has shared that RWA protocols experienced “a remarkable resurgence” over one year. It also showed that the increase in market preference for debt-based, high-yield investments has driven the sector’s growth for the year.

The reported value of $8 Billion in TVL figures excludes fiat-backed stablecoins such as Tether and USD Coin. However, it includes trade protocols, underwriting, yield-bearing stablecoins, commodities, securities, and real estate tokenization protocols.

Discrepancies In TVL In RWA

The TVL in RWA protocols has increased by approximately 60% since February 2024, reaching $8 Billion.

The above image shows 60% growth of TVL presented by Messari

However, the most popular on-chain data presenter, DefiLlama, is presenting the TVL for the RWA protocol as $6.087 Billion with a 24-hour volume of $186,592.

The above image shows the TVL, as per Defillama, showing a growth of 6% since the beginning of this year, from $5.741 Billion to $6.081 Billion on April 26. Nevertheless, the TVL has fallen to $4.17 Billion as of May 11, 2024.

After the Messari report on April 26, TVL fell significantly to $3.38 Million at the press time. The value has fallen to this level since July 2021. If we calculate the growth rate since the value picked up before today’s fall, say from 2022 to April 29, it has experienced a tremendous growth of over 3000%.

Several other factors have experienced significant growth in the concerned period. 

Growth In Other factors

Dune Analytics data presented the growth of active users on RWA since February, representing an increase in the sector’s popularity among smaller retail users. Protocols such as digital carbon market platforms Toucan and KlimaDAO and real estate tokenization protocol Propy have seen active users grow.

Due to high yields in a high inflationary environment and high-interest rates in the USA, viewers have observed massive growth in tokenized treasuries. Moreover, tokenized US treasuries and bonds have recorded a locked value of $1.29 Billion, as per the data from RWA.xyz. It has seen a growth of 80% since the beginning of 2024.

Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.