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.

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

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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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!