Nearly two years after the great crash of 2021, the crypto world is abuzz with news and rumblings of the bear market finally ending. Bitcoin has finally crawled out of its multi-year slump to top $43,000 once again after news of its BlackRock-backed ETF likely gaining final SEC approval in early 2024.
Solana, a controversial coin whose history is intermingled with FTX founder Sam Bankman’s market manipulation schemes, has also found a new footing in the marketplace. A variety of dApps and coins operating in the Solana network have found newfound success, with hundreds of new projects being launched in the final few weeks of 2023.
Coinbase has also launched its own entrant into the crypto marketplace with Base, an Ethereum L2 built on the OP Stack. With gas fees averaging at ten times cheaper than the typical eth transfer, Base will allow further expansion of the DeFi space and greater opportunities for low-cap investors to get into projects early.
All eyes are on the crypto sphere heading into 2024, and with the recently announced interest rate reductions, it’s looking like we’re primed for another bull run in the marketplace. If the ‘20-21 bull market was any indication, chaos will reign supreme as coins moon and rug a dozen times daily.
The euphoric chaos of the marketplace represents a huge amount of opportunity, but once you’ve secured your bag, you’ll likely be looking for a safe place to park your winnings. While staking and yield farming promise solid rewards at a high APR, each comes with its own risks.
These risks are the same as hodling any other cryptocurrency – extremely high price volatility. Many smart investors in the crypto space have been wracking their brains for years about how to allow users to diversify their portfolios and invest their winnings in a more stable asset class that is still on-chain.
The DeFi space has come up with a solid solution to the volatility problem – RWAs, or real world assets. RWAs are the digitization of the value of something you can invest in the physical world, like precious metals, antiques, and even real estate. Each token represents either the whole or a fraction of the value of the asset, meaning that the token’s value remains stable even as the crypto market fluctuates.
Fractionalizing the value of certain asset classes doesn’t just provide a safe haven for the money you’ve made in crypto – it also opens them up to investors who would otherwise never be able to afford them. Companies like RealT that are offering tokenized real estate drastically reduce the initial capital needed to begin investing in rental properties while retaining the liquidity of a crypto asset.
RWAs, as an asset class, provide the best of both worlds: the stability of holding a real-world asset combined with the liquidity of an online token and significantly lower initial capital requirements. If you’ve finally secured your bag in the upcoming bull market and are looking for a safe and profitable place to store it, consider investing in the king of assets with RealT. Happy investing!
