- Blockchain fragmentation leads to up to $1.3B annual value loss.
- 52% of RWA are on Ethereum.
- Data from RWAio highlights interoperability issues.
RWAio’s study reveals blockchain fragmentation results in up to $1.3 billion annual losses in the RWA market, impacting $36 billion in tokenized assets globally.
The fragmentation issue hinders market scalability, with potential losses climbing to $75 billion by 2030 if tokenization trends continue to rise.
Blockchain Fragmentation Costs Up to $1.3B Annually
RWAio’s recent study uncovers that fragmentation across blockchain networks results in significant value loss in the RWA market annually. The market currently has over $36 billion in circulation including assets like private credit and U.S. Treasury bonds. Ethereum holds a dominant 52% share of these assets.
Fragmentation leads to price discrepancies of 1% to 3% for the same asset across different blockchains. Asset transfers incur losses of 2% to 5% due to fees and slippage. Future predictions indicate that as tokenized markets may grow to as much as $30 trillion by 2030, annual losses could reach up to $75 billion.
Industry leaders express concern over the lack of interoperability as a key obstacle. Marko Vidrih, COO of RWAio, noted, “This fragmentation is the single greatest impediment to the market realizing its multi-trillion-dollar potential. In traditional finance, the EU-wide SEPA Instant mandate shows how value can move across accounts in seconds. Tokenized assets should be just as frictionless. Achieving that requires both bottom-up protocol standardisation and top-down coordination from institutions and regulators. Without true interoperability, the industry cannot scale.” The need for coherent standards is pressing across the sector.
Ethereum Dominates, But Faces Interoperability Challenges
Did you know? The RWA market has expanded over 2,000% since 2020, highlighting both potential and challenges reminiscent of historical fragmentation issues in blockchain development.
Ethereum (ETH) is trading at $2,848.58 with a 11.82% market dominance, according to CoinMarketCap data. In the past 90 days, ETH saw a price decrease of 36.15%. The market cap stands at $343.81 billion, reflecting dynamic market movements.
Coincu analysts suggest that addressing interoperability could lead to reduced financial inefficiencies across blockchain platforms. The study’s findings point to potential technological advancements if industry-wide standards are embraced. This shift could help in mitigating substantial losses over time.
| DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
No tags available.
Other Posts
- Amplify 2024: Ohio’s Premier Blockchain Summit
- Polymarket Announces U.S. Beta Relaunch Amid Market Buzz
- U.S. Treasury Proposes New Tax Relief Regulations
- Radiant Capital Faces $50M Loss in Major Security Breach
- SEGG Media Unveils $300 Million Crypto Reserve Plan
- 21Shares Files S-1 With SEC to Launch Hyperliquid ($HYPE) ETF
- Hong Kong Sentences Influencer for Unlicensed Investment Advice
- Franklin Templeton Signals TradFi and Crypto Integration
- Circle Mints $500 Million USDC on Solana Blockchain
- Michael Saylor Denies Bitcoin Sell-Off Amid Large BTC Transfer
- Circle Focuses on Expanding USDC Use in Hong Kong
- Western Union Trials Stablecoin System for Remittance Innovation
- GMGN Completes Compensation for MEV-Affected Users
- Is MetaMask Preparing for Its Long-Awaited MASK Token Airdrop?
- BitMine Expands Ethereum Holdings to $13B With Major Weekly Purchase
- U.S. House Passes Temporary Funding Bill for Continued Operations
- DeXe Protocol Begins Trading on Aster Platform
- Federal Reserve Reaffirms Neutral Stance on Cryptocurrencies
- Balancer Hacks: 2,000 ETH Laundered via Tornado Cash
- MetaMask Teams Up with Polymarket for Prediction Markets
- Amplify 2024: Ohio’s Premier Blockchain Summit
- Polymarket Announces U.S. Beta Relaunch Amid Market Buzz
- U.S. Treasury Proposes New Tax Relief Regulations
- Radiant Capital Faces $50M Loss in Major Security Breach
- SEGG Media Unveils $300 Million Crypto Reserve Plan
- 21Shares Files S-1 With SEC to Launch Hyperliquid ($HYPE) ETF
- Hong Kong Sentences Influencer for Unlicensed Investment Advice
- Franklin Templeton Signals TradFi and Crypto Integration
- Circle Mints $500 Million USDC on Solana Blockchain
- Michael Saylor Denies Bitcoin Sell-Off Amid Large BTC Transfer
- Circle Focuses on Expanding USDC Use in Hong Kong
- Western Union Trials Stablecoin System for Remittance Innovation
- GMGN Completes Compensation for MEV-Affected Users
- Is MetaMask Preparing for Its Long-Awaited MASK Token Airdrop?
- BitMine Expands Ethereum Holdings to $13B With Major Weekly Purchase
- U.S. House Passes Temporary Funding Bill for Continued Operations
- DeXe Protocol Begins Trading on Aster Platform
- Federal Reserve Reaffirms Neutral Stance on Cryptocurrencies
- Balancer Hacks: 2,000 ETH Laundered via Tornado Cash
- MetaMask Teams Up with Polymarket for Prediction Markets
- Amplify 2024: Ohio’s Premier Blockchain Summit
- Polymarket Announces U.S. Beta Relaunch Amid Market Buzz
- U.S. Treasury Proposes New Tax Relief Regulations
- Radiant Capital Faces $50M Loss in Major Security Breach
- SEGG Media Unveils $300 Million Crypto Reserve Plan
- 21Shares Files S-1 With SEC to Launch Hyperliquid ($HYPE) ETF
- Hong Kong Sentences Influencer for Unlicensed Investment Advice
- Franklin Templeton Signals TradFi and Crypto Integration
- Circle Mints $500 Million USDC on Solana Blockchain
- Michael Saylor Denies Bitcoin Sell-Off Amid Large BTC Transfer
- Circle Focuses on Expanding USDC Use in Hong Kong
- Western Union Trials Stablecoin System for Remittance Innovation
- GMGN Completes Compensation for MEV-Affected Users
- Is MetaMask Preparing for Its Long-Awaited MASK Token Airdrop?
- BitMine Expands Ethereum Holdings to $13B With Major Weekly Purchase
- U.S. House Passes Temporary Funding Bill for Continued Operations
- DeXe Protocol Begins Trading on Aster Platform
- Federal Reserve Reaffirms Neutral Stance on Cryptocurrencies
- Balancer Hacks: 2,000 ETH Laundered via Tornado Cash
- MetaMask Teams Up with Polymarket for Prediction Markets
Latest
Press Release
Tezos Art Ecosystem Growth in 2025: Flagship Events, Institutional Programs, and Artist Sales
Doma Protocol Launches Names Marketplace on Base to Bring Over 40 Million Domains Onchain
