DeFi

👋🏻 🎩 𝐓𝐡𝐞 𝐎𝐧𝐜𝐡𝐚𝐢𝐧 𝐎𝐛𝐬𝐞𝐫𝐯𝐞𝐫 (part 1)

is an Onchain Report for enterprise web3 teams created by a collective of web3 technologists and creators who value original + data-informed thinking.

Issue 1 is out: 
- Not-so-obvious insights on the RWA sector

- web3 x financial institutions: who are building in the space, what they’re building and the value it’ll bring 
- independent review of a useful data tool - tracking token performance by crypto narrative category

Read in full:

Datacasters.xyz independent data collective & consultancy to help web3 teams & enterprises harness web3 data

thedatacasters@gmail.com for consults/ contract

- web3 x financial institutions: who are building in the space, what they’re building and the value it’ll bring 
- independent review of a useful data tool - tracking token performance by crypto narrative category

Read in full:

https://onchainobserver.beehiiv.com/p/onchain-observer

a. Not-so-obvious insights on RWAs 🤔

- RWA as a sector saw one of the highest TVL growth rates in 2H23, going from an aggregated TVL of $1 bn and less in 1H23 to between $5 bn to $6 bn in 4Q23.

A key insight from @glxyresearch’s latest detailed RWA report is that 

a few of the largest DeFi & stablecoin protocols have rapidly moved from having only ~10-20% of their stablecoin collateral share coming from RWAs to as high as 60% in late '23!

Separately, another meaningful driver of RWA TVL growth in 2023 came from a rise in tokenized U.S. treasuries & bond products starting in 2Q23.

Per data from rwa.xyz the combined market value of issued tokenized treasuries amounted to over $860 million as of early 2024, up by ~$750 million since early 2023.

Another observation - the market cap total for a "pure-play" RWA is not tracked properly

for instance, some protocols categorized as RWA by CoinMarketCap are non-RWA focused blockchains and protocols ...which obscures the true picture of RWA-pure plays’ market value and how they are changing over-time.

Considering the above sector tracking constraints, we put together a more focused list of “core” RWA protocols (whose business is primarily in bringing RWAs on-chain). 

Their combined current market cap sums up to less than $4 billion as of late January 2024.

If our estimate of a “pure-play” sector market cap for onchain RWA protocols is closer to reality - being between ~$4 to $5 billion or less as of early 2024, this implies the room for value appreciation for RWA protocols is massive in the coming few to 5 years.

Stay data-curious 🐇

In each issue of 🎩 𝐓𝐡𝐞 𝐎𝐧𝐜𝐡𝐚𝐢𝐧 𝐎𝐛𝐬𝐞𝐫𝐯𝐞𝐫 we cover
Analyses that go beyond the flavors of the day/week - on emerging trends, adoption, fundamentals or narratives of a web3 vertical, network, or protocols

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Upon a closer look at growth drivers, we see that a meaningful portion of the RWA segment’s TVL growth was driven by MakerDao’s adoption of RWA for its DAI collateral