TVL on Real-World Assets Spikes Up 700% as Stablecoin and CBDC Popularity Grows in 2023
Total value locked on real-world assets recorded a 700% surge year-to-date (YTD) alongside overall decentralized finance (DeFi) figures in 2023 as the market’s bullish sentiment continues.
A recent market report by CCData shows overall strength in the market after several months of harsh bearish numbers with institutional demand in cryptocurrency products rising into Q4 2023.
Institutional interest was recorded in Bitcoin (BTC), real-world assets, Assets Under Management (AUM), and derivatives although there was a decline in stablecoins, a preferred asset for traditional investors because of its backed reserves.
The stablecoin market saw plunging numbers at the start of the year despite other assets posting slight gains. Analysts viewed the trend as coming off the heels of growing signals for harsher regulations by authorities and the rapid development of Central Bank Digital Currencies (CBDCs).
However, after 18 months of consecutive outflows, stablecoin market capitalization rose in October as new capital was sparked by a drive in cryptocurrency funds and tokenization.
At press time, the stablecoin market cap stands at $129 billion, 30% below its all-time high of last year. While cryptocurrencies crashed in value last year, the downtrend of stablecoins wasn’t as sharp as altcoins due to investors utilizing them as a haven against inflation.
Analysts at CCData expect the market share to rise in the coming months in line with other cryptocurrencies as a new market cycle introduces a new demand for the assets.
A turning point for stablecoins in recent months is the surge seen in DeFi numbers pointing to the bullish outlook in the market. The downtrend in the market cap was due to a lack of yield activities with stablecoins used
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