Crypto KOL Ivy posted on X that over the past 24 hours, the combined trading volume of tokenized gold, specifically $XAUT and $PAXG, has surpassed that of BNB, ranking just behind XRP and SOL. This indicates that on-chain gold is becoming more active than most native crypto assets. The next cycle in the crypto market is expected to focus on real-world assets (RWA) and tokenization.
As Bitcoin struggles and new crypto narratives are scarce, crypto natives are seeking assets with better returns. Unlike altcoins with no intrinsic value, RWAs are backed by high-quality and reliable underlying assets. Tokenized stocks represent companies with actual business operations and revenue, while gold and silver are globally recognized safe-haven assets. Other commodities also hold practical application value. This year, gold prices have risen significantly, with a peak increase of 30% in the first month, while silver saw a maximum rise of 70%. In contrast, Bitcoin's highest increase was around 10%, followed by a decline, shifting the wealth effect from crypto to physical assets.
Today, two notable figures, Vida, the founder of Equation, and 0xSun, a prominent on-chain figure, are both investing in silver, marking a shift among crypto natives. Furthermore, the tokenization of more globally recognized real assets will bring valuable assets on-chain. Among native crypto assets, tokens with actual value are limited, with most catering to speculative demand. Native crypto funds are also more inclined towards high-risk speculative investments.
The introduction of tokenized stocks and gold offers traditional funds and institutions the opportunity to allocate these assets on-chain. This transition could transform the on-chain environment from a 'risk casino' to a new 'asset allocation venue,' altering the composition and risk preferences of on-chain funds. Crypto has the potential to become the next-generation financial infrastructure.