Fortunafi's 1Q2024 State of the Industry Report (RWA & Stablecoins)

Although many seem to think memecoins are the only narrative driving the bull market, 1Q proved that RWA and stablecoins are more than just key themes of the current cycle.

Relentless demand for bitcoin (BTC) following a series of ETF approvals catapulted all pockets of crypto higher in 1Q2024 - Real World Assets (RWA) & stablecoins included.

A head-turning 4Q2023 persisted into and throughout 1Q2024 after the SEC validated what many had long been expecting, a Jan. 2024 ETF approval. As expected, the approval of various BTC ETF issuers resulted in unprecedented demand from the likes of retail and institutional players long seeking a TradFi vehicle to gain exposure to the digital asset. In other words, 1Q confirmed crypto’s next bull market is officially here.

Crypto Total Market Cap (1D)

To put things into perspective, in just the first two months of launching, BTC ETFs attracted more than $50B in net inflows and, on Feb. 28, 2024, set a new daily record of nearly $8B in trading volume. Not even higher than expected inflation, fading prospects of interest rate cuts in 1H2024, an Ethereum (ETF) ETF approval delay by the SEC, and news that FTX sold about $1B worth of Grayscale’s Bitcoin ETF was enough to keep BTC and the broader crypto asset market from grinding higher into quarter-end. Market participants turned even more bullish as the quarter carried on - with a change in tone on BTC and crypto from former President Donald Trump, the Hong Kong Securities and Futures Commission accepting the first spot BTC ETF application, and BTC’s forthcoming Apr. 18 halving event adding fuel to the fire. When all was said and done, BTC and the broader crypto asset market notched a +68% and +62% gain, respectively.

With everyone and their grandmother walking away from 1Q2024 full-well, knowing that it was a blow-out quarter for BTC and many of the largest digital assets by market cap, many also finished the quarter having missed out on a plethora of bullish sector developments. Amongst the sectors that saw meaningful adoption and innovation were RWA and stablecoins - both arguably cemented the notion of both sectors being the market’s most promising narratives and darlings of the current bull market. Accordingly, after reading this report, readers will understand why both sectors held strong 1Q2024, why 2Q2024 will be an even bigger quarter, and how we see things evolving in light of recent developments and milestones.

Want To Read The Full Report?

Every quarter, we break down what happened in RWA and stablecoins so you can stay informed and educated. Not only that, but we also provide a detailed outlook of what to expect in light of ongoing market developments.

Topics Covered:

  • Crypto, RWA, & DeFi Sentiment

  • Alt L1s & L2s See RWA Growth

  • Institutional Tokenization Adoption Hits Critical Mass

  • Stablecoin Total Market Cap Explodes

  • Regulation Heats Up In Favor of Stablecoin Issuers

  • RWA Deal Flow To Rise

  • Non-Crypto Natives To Go After The Stablecoin Market

  • Game-Changing Regulation To Come for RWA

Disclaimer: The information contained herein is general information, intended for educational purposes only, and is not intended to constitute legal, tax, accounting, or investment advice. Information, opinions, and views are solely of Fortunafi, and none of the information contained should be used as the basis for any investment decisions. To ensure suitability, contact a licensed investment professional when making any investment decisions and do your own research.