Fortunafi's 4Q2023 State of the Industry Report (RWA & Stablecoins)

A head-turning start to 4Q2023 persisted into year-end, with nearly every corner of crypto catching newfound inflows that were indicative of the start of a bull market. Still, not all sectors saw as much interest as Real World Assets (RWA) and stablecoins.

Just when the prospect of 4Q2023 mimicking the side-ways price action that market participants dreadfully endured in 3Q2023 started to turn likely, an explosive second half of Oct. 2023 brought newfound hope into the broader crypto asset industry. Despite a shaky start, Oct. ended up netting a dramatic upturn amid misreported news of a bitcoin (BTC) spot ETF approval by the SEC, a shift towards quality investments as per BlackRock CEO Larry Fink, and anticipations of an imminent SEC approval for a spot BTC ETF. In turn, the market roared +19.3%, the best since Jan. 2023, and over $1.3B in short positions liquidated.

Crypto Total Market Cap (1D)

Nov. marked a continuation of the bullish trend, with BTC and the broader market showing significant gains, though not as high as Oct. The strength was fueled predominately by numerous industry-wide and sector-specific developments indicating a resurgence across the industry and predictions of a prosperous 2024; this included lower-than-expected U.S. inflation rates, expectations of interest rate cuts in early 2024, anticipation of a BTC ETF, and a technical breakout suggesting a shift in market momentum towards the bulls. Despite struggling to return to intra-month highs set earlier in Dec., the broader crypto market closed Dec. higher and notched a fourth consecutive month of gains - meaning that three of the four quarters in 2023 ended higher. In sum, 4Q strength resulted in the broader crypto market finishing the year up a remarkable +113%, compared to -66% in 2022.

But while all pockets of the market saw newfound inflows, as evidenced by not only price action but the total market cap of all stablecoins exploding from $133.7B on Oct. 1, 2023, to $140B as of year-end, nothing compared to the progress, developments, and adoption experienced within the RWA and stablecoin sectors. Accordingly, after reading this report, you’ll better understand why both sectors stood out in 4Q2023, why they’re well-positioned to be the darlings of next year, and where we see both headed in the new year.

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

  • New Players Enter RWA, Others Expand

  • Alt L1s & L2s to See RWA Growth

  • RWA Fundraising To Ramp Up

  • Institutions Turn Even MORE Bullish on RWA

  • New Tokenization Verticals To Fuel RWA Expansion

  • A Stablecoin Losing Streak Comes To An End

  • Stablecoin Adoption & Competition Ramps Up

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.