🌴 The RWA Securities Market Update: November 2024 Report Now Available

Brought To You by The RWA Foundation

Security Token Market is proud to release November 2024’s market report, analyzing secondary market activity and benchmarking against the CoinDesk 20 Index (CD20).

In this month’s market report, we have meticulously tracked 733 security tokens spanning across 35 marketplaces and 10 blockchains.

Sections include:

  • Key Takeaways

  • CoinDesk 20 Index Benchmark

  • Quantitative Highlights

  • Asset Class Breakdown

  • On-Chain Liquidity Products

  • Platform Spotlight: Hashnote

  • New Tokens and Announcements

A Sneak Peek

Market Highlights

In November, trading activity increased a significant amount, 47.50% at 280 tokens, compared to 147 tokens in October 2024. Additionally, the overall trading volume showed a slight increase of 1.25% from $3,047,125 in October to $3,085,608 in November.

On the other hand, the market cap increased by 0.96% over the month, rising from $48,602,706,163 on November 1st to $49,068,801,038 by the close of the month.

CoinDesk 20 Index Benchmark

A hypothetical, equally-weighted security token bundle of all STM-tracked RWAs showed minimal growth, up just under 1%. The CoinDesk 20 Index, however, grew a significant 74.66% which comes to no surprise given the revived market and sentiment around crypto. The presidential election in the United States had a meaningful effect on the future of digital assets given the expectations of clearer regulatory frameworks with a new administration and SEC Chair. 

For the same reasons above, the lack of return for tokenized real world assets (RWAs) can be confusing at first. However, it reflects the nature of these tokens and the underlying they represent such as real estate, funds, and asset-backed securities which have their own securities laws to follow and are less affected by the US regulatory climate compared to crypto. With that in mind, it’s worth noting the Quantitative Highlights below show US-based security tokens had their market cap and volume grow at bigger rates than their non-US counterparts, potentially reflecting the effects of the election.

This report is brought to you by the RWA Foundation: The Decentralized Community For Real World Assets.

The mission of the RWA Foundation is to establish standards, best practices, and utility that incentivizes the adoption of tokenization for crypto natives interacting with RWAs as well as asset issuers bringing products on chain. Through the creation of working boards, grant programs, dedicated educational events, and a variety of special initiatives, the RWA Foundation will work with its members to integrate tokenization and RWAs within the crypto economy.

As a flagship initiative, the RWA Foundation is preparing to launch a decentralized autonomous organization (DAO) with the purpose to incentivize more market participation with the release of loyalty perks related to RWAs, exclusive access to RWA related airdrops, and governance tokens to steer the direction of the DAO for token holders.

A Special Thank You to CoinDesk Indices:

The CoinDesk 20 Index benchmarks for this report are generated from data supplied by CoinDesk Indices. We’d like to thank Kim Greenberg, Teun Lucas, and the CoinDesk Indices team for their collaboration.

Taken from the CoinDesk Indices website, the CoinDesk 20 Index (CD20) is a broad-based index that measures the performance of top digital assets.

Characteristics include:

  • Designed with liquidity, diversification benefits, and implementation in mind

  • Applies a capped market capitalization-weighted methodology to enhance diversification

  • Calculated and published once every five seconds

  • Built using the CoinDesk Indices’ Digital Asset Classification Standard (DACS) and drawn from the CoinDesk Market Index (CMI) universe

Complete details available in the CoinDesk 20 Index Methodology and on the Governance page.

Nothing in this report should be construed as investment or legal advice. The information gathered is for educational purposes only.