RWA Sector Surpasses DEX to Become DeFi’s Fifth Largest

2 mins mins

Key Points:

Real World Assets (RWA) advance to the fifth-largest sector in DeFi by TVL.
RWA TVL increased from $12 billion in 2024 to $17 billion in 2025.
Increased demand for tokenized US Treasuries influences RWA’s rise.

December 29th data reveals Real World Assets have surged to the fifth-largest DeFi sector by TVL, reaching $17 billion, surpassing decentralized exchanges, according to BlockBeats News.

This shift highlights burgeoning institutional interest and regulatory clarity, with Ethereum hosting the majority, indicating a pivotal transition in DeFi’s structural composition.

RWA Ranks Fifth in DeFi with $17 Billion TVL

RWA has achieved a significant status in the DeFi sector by becoming the fifth-largest category with a TVL of approximately $17 billion, driven largely by tokenized assets. This marks a substantial rise since its position was outside the top ten at the year’s start.

The growth stems from an increased appetite for balance sheet solutions, with tokenized US Treasuries and private credit emerging as key yield assets. Improved regulatory conditions have also facilitated institutional entry into the RWA market.

Community and institutional stakeholders have responded positively, recognizing the potential of RWA to reshape DeFi landscapes. However, no major public statements have been made by crypto leaders, though the sector’s growth is observed broadly.

Ethereum Leads as Blockchain for RWAs Amid Market Shift

Did you know? In 2025, the rise of Real World Assets marked the first instance of a non-traditional DeFi sector reaching the top five, illustrating a major shift towards tokenized financial products.

Ethereum (ETH), the primary blockchain for RWA, is currently priced at $2,936.45, according to CoinMarketCap. Its market cap of $354.41 billion contributes to an 11.95% market dominance, showcasing Ethereum’s vital role in supporting innovation within the DeFi ecosystem.

ethereum-daily-chart-2374 — Ethereum(ETH), daily chart, screenshot on CoinMarketCap at 18:17 UTC on December 29, 2025. *Source: CoinMarketCap*

Insights from the Coincu research team emphasize the potential for further integration of RWAs into mainstream finance, aided by technological advancements in blockchain and clearer regulations. These changes can lead to durable shifts in asset management strategies and portfolio compositions. According to 21Shares, 2025 might be the year crypto entered adulthood, implying a broader acceptance of digital assets in mainstream markets.

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.