The total value locked (TVL) in DeFi protocols has dropped by $55 billion in the last month. Although the 31% decline gave early signs of a capital exodus, it was primarily driven by asset price depreciation amidst slowing market conditions. Nevertheless, DeFi investors always look for a mature market and relative stability to protect their asset value and generate yields. To this end, RWA tokenization can help the DeFi ecosystem.
RWA tokenization has grown by 380% over the last three years, reaching around $24 billion by mid-2025. Besides enhancing efficiency and transparency in commodity supply chains, tokenization reduces entry barriers and supplies capital through fractional ownership. With the foundations laid for tokenized RWAs, we'll see fresh liquidity injection into the DeFi markets in 2026, powered by RWAs, making way for a more integrated global financial market.
