DeFi total value locked falls to near $78B from a $170B peak, while RWA on-chain capitalization jumps over 550% year-to-date.
Tokenized real-world assets (RWA) have climbed more than 550% since January 2025, reaching new highs as on-chain liquidity shifts away from decentralized finance. The surge contrasts with a 54% decline in DeFi total value locked, which peaked at $170B in autumn 2025 and now hovers near $78B.
DeFi’s contraction follows a broader pullback in crypto markets, while RWA adoption accelerates among institutional players. The segment has transitioned from a niche to a key driver of on-chain capital, attracting traditional finance participants seeking yield and asset-backed exposure.
Market observers note the divergence reflects changing investor preferences amid macroeconomic uncertainty, with RWA offering perceived stability compared to DeFi’s volatility.