Native Coin Economy
The crypto native asset economy, encompassing major tokens like Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), etc, has exploded in recent years. As of today, the total market capitalisation of all cryptocurrencies sits at around $2.7 trillion. A significant portion of this value is attributed to native assets like the aforementioned. While the exact figure fluctuates, estimates suggest that native assets make up around 70% of the total market cap, translating to a crypto native asset economy potentially exceeding $1.89 trillion.
Further fueling this growth, recent developments like BlackRock's foray into real-world asset tokenisation with its trillion dollar fund and the approval of cryptocurrency ETFs could significantly increase investor participation and drive the market capitalisation even higher. These institutional entries signal growing confidence in the space and offer new avenues for capital to flow into crypto native assets. BlackRock's significant investment, coupled with the potential influx from ETFs, suggests the potential for the crypto native asset economy to reach even 10x - 20x greater heights in the near future.
Impact of yield bearing RWAs
Real World Assets (RWA) in crypto refers to the tokenisation of tangible assets that exist in the physical world, that are brought on chain.
Research from BCG, McKinsey, Roland Berger and Bain & Company all suggest that the asset tokenisation sector has the potential to reach anywhere between USD 4-16 trillion in the coming years, but some analysts believe this is only a conservative estimate. This is due to the sheer size of traditional markets; if the tokenization sector captures just a small fraction of its market share, we are looking at potential numbers that go beyond the crypto market’s USD 2.5 trillion market cap.
With the rise of Real World Assets (RWAs) becoming mainstream, it's only a matter of time before traditional assets are traded on-chain. Multipli is set to pioneer this transformation, not only by offering reliable yields on treasury-backed tokens but also by unlocking yield opportunities for traditionally non-yield-bearing assets like stocks and commodities. This not only provides yield bearing opportunities to the digital asset ecosystem but also acts as a reason to bringing more liquidity on-chain.