The latest data from RWA.xyz confirms the official on-chain market capitalization has reached a historic 1 billion USD. However, behind this number is an extremely large polarization as the duo $ONDO & xStocks holds up to 82% market share. A duopoly is clearly taking shape.
Why are the barriers to entry so high?
1️⃣ System liquidity: Requires smooth and deep trading capabilities like traditional finance (TradFi), which smaller protocols find difficult to optimize.
2️⃣ Legal framework: The extremely complex cross-border structure is a major challenge to connect DeFi with mainstream financial institutions.
3️⃣ Distribution network: The advantage of being a first mover helps build strong trust and own a huge institutional client base.
The dominance of leading entities shows that the era of on-chain institutional finance has truly begun. There, legal compliance and liquidity scale are the core value metrics
$ONDO
Why are the barriers to entry so high?
1️⃣ System liquidity: Requires smooth and deep trading capabilities like traditional finance (TradFi), which smaller protocols find difficult to optimize.
2️⃣ Legal framework: The extremely complex cross-border structure is a major challenge to connect DeFi with mainstream financial institutions.
3️⃣ Distribution network: The advantage of being a first mover helps build strong trust and own a huge institutional client base.
The dominance of leading entities shows that the era of on-chain institutional finance has truly begun. There, legal compliance and liquidity scale are the core value metrics
$ONDO