Bitcoin crossed $73k near the beginning of the year, and so far many crypto proponents are expecting the next crypto bull run to commence in 2024 itself. Historically, Bitcoin has led the market in and out of bullish/bearish cycles, hinting at changing tides. If you look at Bitcoin’s price chart below, previous bull markets have taken place in 2011, 2017, and 2021 respectively, all of which are marked by significant jumps in Bitcoin’s prices.
However, crypto narratives have shifted since 2021. The advent of Ethereum ETFs earlier this year, followed by the growing popularity of crypto sectors like memecoins, AI, and RWA tokens, can mean that the next crypto bull run could look very different from its predecessors.
RWA tokens, memecoins, and AI to spearhead the next crypto bull run?
CoinGecko highlighted memecoins, RWA tokens, and AI respectively as the top three most popular crypto narratives in Q2 2024. Notably, in their 2024 Q1 report on the crypto industry, CoinGecko had pointed out AI, memecoins, and RWA as the top three crypto narratives, in that order. Therefore, all three are expected to drive the next crypto bull run rather than Bitcoin, due to evolving market dynamics.
While VC tokens were popular in the late 2010s, crypto traders and investors quickly realized that projects supported by the VCs were failing faster than their contemporaries. After the 2021 bull run, VC tokens were largely replaced by memecoins, which are driven by their communities and distributed fairly. Despite their speculative nature, they can trigger retail investor interest.
On the other hand, RWA tokens represent physical assets like real estate or commodities on the blockchain. To the more traditional investors averse to crypto, they offer tangible value and stable returns. RWA tokenization has brought many traditional big-name players into crypto, including BlackRock and Goldman Sachs. Keeping crypto’s inherent volatility and speculative nature on the side, RWAs draw fresh capital into the market.
ONDO and Mantra are two well-known RWA projects at the moment, all set to play a big role in the upcoming crypto bull run. LAND is another project to keep an eye on; it helps real estate owners across the US monetize their properties with ease, along with letting investors from over 50 countries put their money into US-based real estate.
AI is evolving parallel to blockchain, and the two technologies are also coming together to present some very interesting use cases. For example, Fetch.AI is a blockchain platform using AI to help users automate everyday tasks.
Overall, while Bitcoin remains a critical player, there are different types of altcoins showing promise. All three of the aforementioned crypto sectors are broadening crypto’s use cases beyond Bitcoin’s alternative currency/store-of-value narrative; since they drive innovation and utility, they are likely to gain enough traction to herald the next bull run.
RWA: which tokens to watch out for before the next crypto bull run?
As we await the next crypto bull run (in late 2024 or beyond), RWA is clearly one of the top contenders to emerge as the biggest crypto sector. So far, the RWA space holds about $5.7 billion as TVL (total value locked). RWA tokenization allows previously illiquid assets (like real estate and artwork) greater accessibility, that too internationally, inviting greater liquidity.
Further, RWA tokenization allows fractional ownership- basically, an asset can be converted into multiple tokens if the owner chooses to, allowing multiple investors to own/trade a part of an asset. So for capital-intensive markets like real estate, RWA tokenization lowers entry barriers for smaller investors.
These benefits suggest increasing popularity for the RWA tokenization space. The prudent investor would want to note some RWA projects to keep their eyes trained on, heading into the next bull run. Let us help you!
Here are the most interesting RWA tokens to look into at the moment, in no particular order:
Ondo Finance (ONDO)
Ondo Finance looks to bridge the gap between TradFi (traditional finance) and DeFi by allowing seamless integration of RWA into blockchain. The main focus is to bring traditional investors into the crypto ecosystem. Investors can access structured financial products through Ondo, while users get to be a part of the governance on the Ondo DAO.
ONDO all-time price history
As Ondo puts emphasis on asset-backed tokenization, the ONDO token is priced around $0.64 in mid-September, 2024. In the first half of 2024, ONDO had neared $1.4 fueled by excitement surrounding the token launch. With an upcoming rally, it could go past $1 again in early 2025, experts predict.
Landshare (LAND)
Landshare is all about tokenizing real estate. The platform allows property owners across the US to enlist their real estate and have an investor base that spans continents. People from over 50 countries can invest in properties in the US with Landshare. The LAND token acts as utility and governance token, while the RWA token is there for investors to own a share of the real estate pooled on the platform.
Real estate assets are added to the Real-World Asset (RWA) Pool on Landshare, and as mentioned, each RWA token stands for a share of the pool. Property owners can choose to tokenize all or part of their equity for instant capital needs, and there are even buyback plans for such owners to buy their assets back later. Any real estate tokenized on Landshare is professionally managed on the owner’s behalf, and it emits a constant cash flow as the value appreciates over time.
LAND prices in the past year
The LAND token is priced at $1.28 in mid-September, 2024. The token rallied to its highest price in March 2024, around $6.5. When the crypto market enters a bullish phase next, LAND is expected to show some phenomenal growth.
Centrifuge (CFG)
Centrifuge connects DeFi with RWA with the goal of lowering the cost of capital for small and medium-sized companies, while also providing investors with a stable income source. Enterprises use Centrifuge as a bridge to access liquidity only DeFi can bring, by appealing to a global investor base. Centrifuge eliminates the volatility of typical crypto by bringing real-world value on-chain.
Further, users can tokenize RWA and then use the tokens generated as collateral to take loans on Tinlake, an adjacent lending platform. The CFG token is valued around $0.34 in mid-September, 2024. In April 2024, its price went up to $1.06, and the upcoming bullish atmosphere could send it reaching for $1 in early 2025.
And those were our top three RWA token picks for the next crypto bull run! Here’s a quick comparison of all three so you have an easier time choosing one to focus on:
All the aforementioned tokens have steady potential for growth, given the popularity of the RWA sector. For instance, real estate has always been a much-coveted market. Projects like Landshare bring global access to both property owners and all kinds of investors, increasing liquidity, appreciating value, and banishing large capital requirements on the investors’ end.
RWA is going to lead crypto into a new age without a doubt, as one of the prime instigators of the next bull run. On that note, ONDO, LAND, and CFG are all great investments for those who want to be prepared for the upcoming rally. However, we always promote DYOR habits, so do remember to read up on your own and pick a RWA project of your choice!
Happy investing!