Tokenization is growing rapidly. However, Despite the emergence of new networks, the market is concentrated. Is growth in multiple chains just one story?
Ethereum is the center of tokenized assets
According to Token Terminal, tokenized funds, stocks and commodities now form a $38.6 billion market across 35 chains. Ethereum [ETH] alone is responsible for nearly $25 billion of that. That’s 65% of the total market!
This is part of a larger trend. AMBCrypto previously reported that US investors (both whales and individuals) are increasing their exposure to Ethereum regardless of market conditions.
The remaining 34 chains are worth about $13.6 billion.
It’s not that other chains don’t matter; they’re just not dominant enough. Networks like $BNB Chain [$BNB]Solana [SOL]and Tron [TRX] still see activity.
Multi-chain growth is a myth!
In terms of RWAs, Ethereum topped the table with a value of around $16.7 billion, way ahead $BNB Chain for $3.8 billion and Solana for $2.0 billion at the time of writing.
Stablecoins were also similar. Ethereum held 52.9% of the stablecoin market cap, while Tron held 27.8%. Then Solana, BSC, Arbitrum [ARB]Polygon [POL]and others seemed much smaller.
So there is competition, but in its current form there is only one clear winner.
So is Ethereum’s lead unassailable?
No.
Competing chains are focusing on areas where Ethereum is still lagging behind. These are higher transaction costs and slower settlement during busy periods.
Tron, for example, is a proof of concept for how lower costs and fast transfers can attract real activity. Solana, $BNB Chain and other networks make similar claims about speed and cheaper issuance. Legislation certainly also influences the question of where institutions choose to issue tokenized assets.
These weaknesses are exactly where the competition will play out.
Final summary
- Ethereum dominates tokenized assets with $25 billion (65% share), while other competitors lag far behind.
- There is growth across multiple chains, but real competition has been really limited so far.