What to know:
- In the grand theater of market corrections, our digital asset investors have taken a dramatic turn towards tokenized U.S. Treasury products, catapulting their market cap to a staggering $4.2 billion! đđ¸
- Since the curtain rose in late January, this asset class has added a whopping $800 million in market value, with Ondo Finance’s tokens, BlackRock’s BUIDL, Franklin Templeton’s BENJI, and Superstate’s USTB all basking in the limelight. Meanwhile, Hashnote’s USYC has taken a rather unfortunate tumble. đŦ
- As tokenized treasuries outshine stablecoins during this crypto calamity, it seems investors are making a “flight to quality,” seeking refuge in safer, yield-bearing assets, as noted by the ever-astute Brian Choe from rwa.xyz. đŠī¸đŧ
As cryptocurrencies have been mercilessly battered in this broad-market correction, our digital asset investors have sought solace in the warm embrace of tokenized U.S. Treasury products. Who could blame them? đ
Since late January, the combined market capitalization of Treasury-backed tokens has surged by $800 million, reaching a fresh all-time record of $4.2 billion on Wednesday, according to the ever-reliable rwa.xyz. đ
Real-world asset platform Ondo Finance’s (ONDO) products, the short-term bond-backed OUSG and USDY tokens, have climbed to just shy of $1 billion combined, marking a 53% surge in market value over the past month. BUIDL, the token born from the union of asset manager BlackRock and tokenization firm Securitize, has gained a respectable 25% during the same period, surpassing $800 million. Meanwhile, Franklin Templeton’s BENJI token has expanded to $687 million, a 16% increase, while Superstate’s USTB has hit $363 million, up more than 63%. Quite the performance! đ
However, not all is rosy in this digital garden. Hashnote’s USYC has shed over 20% of its market cap, plummeting to $900 million, largely due to the DeFi protocol Usual’s unfortunate decline after a rather vocal investor backlash. The token is the main backing asset of Usual’s USD0 stablecoin, which has seen its supply drop below $1 billion from a January peak of $1.8 billion. Ouch! đą
“We believe the growth of the tokenized treasury market cap during the recent crypto downturn reflects a flight to quality, much like how traditional investors flee from equities to U.S. Treasuries during economic uncertainty,” Brian Choe, the sage of rwa.xyz, told CoinDesk. Wise words indeed! đ§
Choe’s analysis compares the market cap growth of tokenized treasuries with stablecoins between November and January, when crypto markets were on a high, and from February when prices took a nosedive. đ
During this recent bearish period, tokenized treasuries have outpaced stablecoins, a stark contrast to the bullish phase when stablecoin growth was the star of the show. đ
“This signals that some investors aren’t exiting the ecosystem but rather rotating capital into safer, yield-bearing assets until market conditions improve,” Choe sagely concluded. A prudent strategy, indeed! đ§ đĄ
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2025-03-13 21:54