What are Real World Assets (RWA) and Its Importance in Crypto?

Crypto Basics

What are Real World Assets (RWA) and Its Importance in Crypto?

Learn everything about Real World Assets (RWA) in crypto and know how they bridge traditional finance with blockchain for enhanced security and liquidity.

S. Vishwa

5 Minutes

MIN

Index

Overview of Solana Blockchain

In cryptocurrency and blockchain technology, real world assets (RWAs) are becoming increasingly popular. These assets represent tangible items of value, whether physical or digital, that are tokenized and stored on the blockchain.

This article will explore real-world assets, their importance in crypto, and how they are used in various applications.

Understanding Real World Assets

Real world assets can encompass a wide range of items, including physical assets like real estate, commodities, and precious metals, as well as digital assets such as stocks, bonds, and intellectual property. These assets derive their value from outside of the blockchain, but by tokenizing them, they can be represented digitally on the blockchain.

Tokenization is the process of converting real-world assets into digital tokens. These tokens are then stored on the blockchain, which provides transparency, security, and immutability. Tokenization allows for fractional ownership, meaning that high-value assets can be divided into smaller units, allowing more people to invest in and benefit from them.

The Importance of Real World Assets in the Crypto Space

Real world assets play a crucial role in crypto for several reasons. Firstly, they bring liquidity to traditionally illiquid assets. Assets like real estate or fine art can be challenging to buy or sell quickly, but by tokenizing them, they become more liquid and accessible to a broader range of investors.

Secondly, real world assets provide diversification opportunities for crypto investors. Investors can hedge against the volatility of purely crypto-related assets by including real world assets in their portfolios. This diversification can reduce risk and increase stability in investment strategies.

Thirdly, real world assets bridge the gap between traditional finance and decentralized finance (DeFi). DeFi platforms allow for the lending, borrowing, and trading of real world assets, providing similar investment opportunities to traditional financial institutions. This integration of real world assets into DeFi expands the reach and functionality of the decentralized financial system.

Use Cases of Real World Assets in Crypto

Real world assets are being used in various applications within the crypto space. One prominent use case is in lending and borrowing platforms. These platforms allow users to use their tokenized real world assets as collateral.

Borrowers receive stablecoins or other tokens while lenders earn interest on their holdings. This use case provides an alternative to traditional lending and borrowing services, offering flexibility and accessibility.

Another use case is in the creation of index funds. DeFi platforms enable the creation of pooled investments that provide passive exposure to a basket of real world asset tokens. These index funds diversify risk across different asset classes and tokens, allowing investors to gain exposure to a broader range of assets.

Asset management is another area where real world assets are utilized in the crypto space. Autonomous fund protocols can deploy capital by trading real world asset tokens, aiming to generate returns for investors. This approach allows for the active management of assets and the potential for higher yields.

Lastly, real world assets on the blockchain can be used for less risky investments. Assets like real estate, commodities, and fine art are typically less volatile than purely crypto-related assets. By tokenizing these assets, investors can gain exposure to alternative asset classes while potentially reducing risk.

Tokenization Process for Real World Assets

The tokenization process for real world assets involves several steps. First, an asset that holds value and could benefit from blockchain exposure and tokenization is identified. It could be a physical asset like real estate or a digital asset like a stock.

Next, regulatory approval must be sought to ensure that the tokens representing the asset are legally recognized and enforceable. Compliance procedures may need to be followed depending on the jurisdiction and type of asset being tokenized.

Once regulatory approval is obtained, a blockchain network must be selected to represent the asset. Algorand, for example, offers a cost-effective and scalable blockchain infrastructure for managing real world assets. Its smart contract functionality and role-based asset controls make it an ideal choice for projects issuing and managing digital representations of physical items.

After selecting a blockchain, digital tokens representing shares of the asset are created and issued. These tokens contain underlying asset information that links them to real world items. Ownership and transaction details are recorded on the blockchain, providing transparency and trust.

Once the tokens are issued, they can be traded on decentralized applications and cryptocurrency exchanges. Smart contracts automate processes like transferring ownership and distributing revenue as the tokens are bought and sold. It creates a secondary market for real world asset investments, increasing liquidity and accessibility.

Examples of Real World Assets in Crypto

Several projects are already tokenizing real world assets in the crypto space.

One example is TravelX, which is tokenizing airline seats. Users can purchase airplane tickets as non-fungible tokens, which can be traded or resold in a liquid secondary market. It provides greater flexibility and efficiency when buying travel tickets.

Ctrl Alt is another project focusing on diversifying portfolios through alternative asset classes. By partnering with organizations that manage various underlying opportunities, Ctrl Alt represents fractional ownership as digital assets. This allows everyday investors to access niche investments that were previously out of reach.

Koibanx is a platform that enables tokenizing assets like real estate and stocks. Users can transform these assets into digital tokens on the blockchain, providing increased liquidity and accessibility.

Evident offers a multifaceted platform for financial activities, including establishing Special Purpose Vehicles (SPVs) and co-investment opportunities. It also provides tools for companies to raise capital through asset tokenization.

Realio is a platform that brings private equity, real estate, and other real world assets to DeFi. It allows investors to gain exposure to these asset classes typically reserved for accredited or institutional investors.

These examples demonstrate the versatility and potential of real world assets in the crypto space. By tokenizing these assets, they can be made more accessible, liquid, and tradable, opening up new investment opportunities for a broader range of individuals.

Conclusion

Real world assets are an important and growing trend in the crypto space. These items can be represented digitally on the blockchain by tokenizing physical and digital assets, providing increased liquidity, accessibility, and diversification opportunities.

Real world assets are used in various crypto applications, from lending and borrowing platforms to asset management and index funds. The tokenization process involves identifying valuable assets, seeking regulatory approval, selecting a blockchain network, creating and issuing tokens, and facilitating their trading on decentralized platforms.

As the crypto industry continues to evolve, real world assets can play a significant role in shaping the future of finance.

Disclaimer

The information provided on this website does not constitute investment advice, financial advice, trading advice, or any other advice, and you should not treat any of the website's content as such.

Token Metrics does not recommend buying, selling, or holding any cryptocurrency. Conduct your due diligence and consult your financial advisor before making investment decisions.

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SUI Price Analysis: Short-Term Momentum Builds Amid Long-Term Uncertainty

Token Metrics Team

4 min

MIN

SUI, a rising Layer 1 blockchain network, has been gaining traction recently—and Token Metrics' AI-powered tools were ahead of the curve in identifying its bullish momentum. On April 24th, the Token Metrics Trader Grade issued a bullish signal for SUI, and since then, the price has climbed nearly 22%, confirming the strength of the short-term trend.

But there’s more to this move than just price action. Token Metrics offers a unique perspective by analyzing both short-term and long-term signals through its proprietary Trader Grade and Investor Grade ratings. These grades offer a layered view of an asset's potential by using machine learning to evaluate over 80 on-chain, off-chain, and technical indicators.

Token Metrics AI: Bullish for Traders, Bearish for Investors

As of the latest data, SUI holds a “Strong Buy” rating on the Token Metrics Trader Grade, signaling powerful momentum for short-term traders. This suggests that swing traders and scalpers could benefit from the current trend, particularly if the price can decisively break through the immediate resistance at $4.25.

However, the Investor Grade tells a different story. While the short-term outlook is bullish, the long-term view remains cautious. The Investor Grade currently recommends a Sell, suggesting SUI may face challenges in sustaining gains over a multi-month time frame. This divergence highlights the importance of aligning your investment strategy with the appropriate time horizon.

TVL Growth Validates SUI’s Ecosystem Expansion

Beyond AI ratings, Token Metrics also factors in fundamental metrics—and one of the strongest tailwinds for SUI right now is its rapidly growing Total Value Locked (TVL). According to DeFi Llama, SUI’s TVL has surged to a new all-time high of $2.11 billion, cementing its position as the 8th largest blockchain by TVL.

This growth in TVL indicates that more capital is being deployed in the SUI ecosystem. It reflects increased user engagement with decentralized applications (dApps) on the network and signals rising confidence among DeFi participants. From a fundamental standpoint, this bodes well for SUI’s long-term utility—even if its price action hasn't yet caught up to the full extent of this growth.

Key Technical Levels: Breakout or Pullback?

From a technical analysis standpoint, SUI is now testing a major resistance at $4.25. A confirmed breakout above this level could send the asset surging toward new all-time highs, potentially igniting a new wave of momentum-driven buying.

However, if the price fails to breach this resistance zone, a pullback is likely. In that scenario, the $3.00 to $3.20 range should act as a solid support area. These levels will be critical for traders to monitor, and Token Metrics' real-time alerts can help users stay on top of such breakouts or reversals.

Trading Smarter with Token Metrics

Whether you're trading short-term breakouts or evaluating long-term positions, Token Metrics helps crypto investors make data-driven decisions. The platform’s dual-grade system—Trader Grade for momentum-based insights and Investor Grade for long-term trends—equips users with nuanced information to act with confidence.

Moreover, Token Metrics integrates this data directly into its AI Trading Agent and custom alerts system, ensuring you never miss an opportunity or warning signal. With instant access to heatmaps, technical breakdowns, and AI-based predictions, SUI traders can manage risk more efficiently and capitalize on emerging trends before the rest of the market catches on.

Final Thoughts

SUI is showing promising signs, especially with its network fundamentals improving rapidly and short-term momentum turning bullish. Still, the cautious long-term outlook suggests that traders should proceed with a balanced approach—watching both breakout levels and support zones, while leveraging tools like Token Metrics for real-time decision-making support.

As always, combining AI-driven insights with strong risk management is the key to navigating volatile markets like crypto. SUI is one to watch—and Token Metrics helps you stay one step ahead.

Announcements

AI Tokens and DeFi 2.0: Where Smart Capital is Flowing

Token Metrics Team

4 min

MIN

The crypto market is cyclical—not just in price, but in narrative. In recent months, attention has rotated from AI to DeFi, creating new opportunities for savvy investors. Let’s break down the trends.

AI Momentum Remains Strong

Projects like Vader AI, BitTensor, and Grass continue to dominate the conversation. Vader AI, part of the Virtua ecosystem, gained momentum from staking programs and Genesis Launchpad allocations. Grass, a data-layer AI protocol, claims $15M+ in revenue and recently flipped bullish on technical indicators.

BitTensor remains the leading infrastructure play in the AI space, drawing parallels to Bitcoin in its community enthusiasm and decentralization ethos. It has rebounded over 150% from its lows and is showing resilience in the current market cycle.

DeFi’s Comeback: Aerodrome and Beyond

Meanwhile, DeFi is showing signs of resurgence. Aerodrome, a DEX on the Base chain, is gaining traction through strong liquidity incentives and revenue-sharing mechanisms. Its user incentives echo the early days of Curve or Uniswap but on a chain optimized for scalability.

Virtua’s staking model is also driving a hybrid DeFi/AI strategy, blurring the lines between token utility, participation, and value capture.

Narrative Rotation: What It Means

Crypto narratives are rarely zero-sum. What we’re seeing now is a healthy diversification: AI remains dominant, but DeFi is catching a second wind. For investors, this means exploring tokens that sit at the intersection—offering strong tech, compelling incentives, and infrastructure integrations.

Closing Thoughts

Whether you’re riding the AI wave or positioning for the DeFi rebound, it’s clear that smart capital is flowing into ecosystems with tangible traction. Watch the flows, track the signals, and always be ready to pivot.

Track the Trends with Token Metrics

Token Metrics is your edge in navigating the ever-shifting landscape of crypto narratives. Our AI-powered research platform helps you spot bullish trends early, evaluate project fundamentals, and make data-driven investment decisions. Whether you're interested in AI tokens, DeFi protocols, or hybrid plays, Token Metrics provides real-time signals, technical grades, and curated indices to guide your next move.

Explore the platform at www.tokenmetrics.com and discover where smart capital is heading next.

Research

How Hyperliquid is Redefining Decentralized Perpetuals in 2025

Token Metrics Team

4 min

MIN

While most exchanges compete on liquidity or UI, Hyperliquid is rewriting the rules entirely.
This decentralized perps exchange has not only survived the bear market—it’s thriving. Backed by real revenue, a growing user base, and a unique listing model, Hyperliquid is emerging as the “Uniswap of Perps.”

The Reverse Auction Listing System

Hyperliquid introduces a novel reverse auction system for listing tokens. Bidders compete for tickers, with starting prices set at 2x the previous auction. Some tickers have fetched over $1 million, with the fees used for buybacks and burns—driving long-term value to the ecosystem.

This model isn’t just a gimmick. It introduces scarcity and gamification into token listings—something no other exchange is doing at this level.

Sustainable Revenue and Strong UX

Unlike many DEXs, Hyperliquid generates consistent trading fees, even in sideways markets. Its EVM-compatible L1 is coming soon, which could further cement it as the go-to perps exchange for serious traders.

Product-Market Fit in Action

In a space where hype often outpaces adoption, Hyperliquid offers both. It's not trying to be first—it's trying to be the best. The community listing process, upcoming L1, and high trading volumes all suggest it’s built for long-term relevance.

Smarter Trading with Token Metrics

To navigate emerging platforms like Hyperliquid, sophisticated analytics are key. Token Metrics provides a powerful suite of tools—AI-driven trading signals, token grades, on-chain data, and market indicators—to help traders make confident, data-backed decisions. Whether you're evaluating new token listings, monitoring market sentiment, or comparing DEX performance, Token Metrics equips you with everything you need to stay ahead of the curve.

Final Take

Hyperliquid is more than just another DEX—it’s a case study in how to build sustainable tokenomics and community alignment. If you’re looking for the next big infrastructure play in trading, don’t sleep on this one. And if you want to trade smarter, platforms like Token Metrics can be your secret weapon in decoding the market's next moves.

Token Metrics Media LLC is a regular publication of information, analysis, and commentary focused especially on blockchain technology and business, cryptocurrency, blockchain-based tokens, market trends, and trading strategies.

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