- Investors are moving money from DeFi into safer tokenized real-world assets.
- This shift shows caution in the market, not investors leaving crypto.
Investors are moving money out of the decentralized finance to the tokenized real-world assets as the crypto market faces weakness. Experts say that investors are choosing the low-risk option in the space instead of quitting. Data shows that tokenized assets grew by 8.7%, which is around $24.8 billion in value, over the past month. At the same time, according to industrial tracking platforms, the DeFi’s total value has dropped to 25%, around $94.8 billion
According to the market analysts, DeFi yields have decreased significantly, and many major DeFi protocols have recorded a decline in the past 30 days. During the week, lower market returns have made staking and lending less attractive. Investors are now prioritizing stability instead of the higher yields
Reason behind the Tokenized Assets Attraction
Tokenized real-world assets include things like U.S. Treasury bonds, commodities, and private credit. Over the past month, tokenized U.S. treasuries increased by 10%, commodities rose by 20%, and private credit increased by 15%. Experts say that assets offer around 4% annual return with lower risk, which makes them more attractive during weak market conditions
This shift happens when investors move from high-risk assets to safer investments during a market crisis in traditional finance. Similarly, in crypto, instead of panic selling and exiting completely, investors are safely shifting their capital within the ecosystem. Tokens linked to these tokenized asset platforms do not always see price gains; however, experts note that in many cases, the value moves in assets rather than utility tokens
The current shift from DeFi to tokenized assets shows that the investors are becoming more selective. DeFi, which depends heavily on the high yields, is facing pressure, but the tokenized real-world assets offer regulatory clarity and are attracting cautious capital. This builds confidence in investors and leads to significant market evolution
Highlighted Crypto News:
Neel Kashkari Slams Crypto as “Utterly Useless”
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
World Gold Council Launches "Gold as a Service" to Promote the Upgrade of Digital Gold Infrastructure
The World Gold Council plans to launch a "Gold-as-a-Service" platform aimed at simplifying the launch process for digital gold products, connecting physical gold custody with digital management, enhancing market liquidity, and promoting the integration and development of gold in the digital finance era.
GateNews40m ago
USD/JPY holds 20-day EMA support at 157.50 amid market volatility
The USD/JPY exchange rate remains strong at the 20-day EMA level of 157.50, showing resilience amid ongoing market volatility. This technical support has stabilized despite recent price fluctuations.
GateNews40m ago
Six Countries Unite to Stabilize Energy Market, Oil Prices Fall Nearly 2%, Bitcoin Rebounds to $70,800
On March 20, a multi-country coordinated action stabilized the energy market, oil prices fell, and Bitcoin rebounded to $70,800 at one point, gaining over 1% for the day. Mainstream coins such as Ethereum and XRP rose less than 1%. Market uncertainty remains, stock market momentum has shifted to bearish, which could impact financial markets.
GateNews44m ago
STRC Current Value Reveals MSTR Risk: Bitcoin Accumulation Commitment May Fall Short
Strategy's dividend preferred stock Stretch (STRC) may be overvalued due to its high annualized dividend yield of 11.5% and significantly increased future payment obligations. While it may improve the balance sheet in the short term, if Bitcoin's appreciation fails to exceed the high dividend yield, common shareholders' returns will be limited, and the market remains cautious about STRC's long-term sustainability.
GateNews48m ago
Amundi adopts Chainlink to promote tokenized funds, LINK still struggles to break $10
European asset manager Amundi has partnered with tokenization platform Spiko to launch a $100 million Spiko Amundi Overnight Swap Fund (SAFO), selecting Chainlink as its oracle infrastructure. However, LINK has failed to break above $10 since February. Despite on-chain data showing declining LINK holdings and increased ETF inflows, market sentiment remains cautious, making it difficult for prices to rise in the short term, and institutional adoption has yet to become a price catalyst.
MarketWhisper1h ago
JPMorgan Downgrades S&P 500 Target to 7,200: Oil Prices Break $110, Stock Market Faces 10%-15% Correction Risk
JPMorgan Report Warns on Global Risk Assets, Cuts S&P 500 2026 Target to 7200, Points Out Market Overly Optimistic on Iran Conflict De-escalation. Oil Prices Break Through $110, Suppressing Consumption and Earnings, with Expected Economic Growth Slowdown. If Oil Prices Remain Elevated, S&P 500 Faces 10%-15% Pullback Risk, and Market Volatility May Persist at High Levels.
GateNews1h ago
