Analysis: Blockchain fragmentation could cost the RWA market billions of dollars annually.
TL;DR
A study reveals blockchain fragmentation costs the RWA market $600M-$1.3B annually due to price discrepancies and transfer fees. If the market grows to $16T-$30T by 2030, losses could surge to $30B-$75B per year.
According to ChainCatcher, citing TheDefiant, a recent study by data analytics platform RWAio found that the fragmentation of blockchain networks causes a loss of $600 million to $1.3 billion in value to the RWA market annually. Currently, the total value of RWA in circulation (including private credit, US Treasury bonds, and commodities) exceeds $36 billion.
RWAio discovered that the same asset often trades at different prices on different blockchains, with price differences ranging from 1% to 3%. Furthermore, due to transaction fees and slippage, transferring assets between different chains can result in investors losing 2% to 5% per transaction. Currently, Ethereum holds 52% of all RWA tokenized value, while Polygon holds 62% of RWA tokenized bonds.
According to forecasts, if the tokenized asset market reaches $16 trillion to $30 trillion by 2030, the annual losses could reach $30 billion to $75 billion.