It’s the best time of the year to reflect on what has passed and to look forward to the six years ahead. How else can you get through your turkey coma without reminiscing?
ParaFi’s latest Empire podcast episode had some intriguing callouts regarding predictions for 2030. The two that stood out for me were the following:
First, tokenized assets of real world assets would outpace digital assets in terms of value.
RWAs are worth nearly $13.5billion, excluding stablecoins.
Ben Forman, ParaFi, says that the total market capitalization of crypto assets is currently $3.4 trillion. RWA hasn’t yet swarmed cryptos, but it’s close. RWAs have seen their value increase by over 50% just in the last 12 months.
The financial sector — stop me if you’ve heard this one before — is outdated.
“We still don’t have … an Amazon experience for finance,” Forman said.
It is therefore ripe to take advantage of the chance to revamp financial systems.
“The beauty of tokenization is that when you have assets on a blockchain, you can program logic into the actual asset itself. This reduces the need for lawyers for administrators for trustees, and it also opens up a whole host of other AI agent use cases where micro payments can be enabled,” Forman said.
The tokenized treasuries are currently the most successful in this space, accounting for 62% of all the pie.
You can’t discuss RWA tokenization and stablecoins without mentioning them. Rwa.xyz says that if you add the two together, your combined market cap is close to $200 billion.
ParaFi estimates that the US could have stablecoins reaching 10% of the M2 currency supply by 2030.
As with their RWA forecast, it’s not too late for stablecoins to reach 10%. They barely account for 1% of M2, which is $21 trillion.
ParaFi has three main reasons to think this way: Stablecoins are a form of new payment system that is being used around the globe.
Fintech firms have the opportunity to introduce stablecoins, as they are not bound by legacy operating systems. Kevin Yedid Botton of ParaFi noted the potential for a new model that uses yield-bearing deposits to back stablecoins.
Delphi Digital reported earlier this week that the weekly volume of stablecoins transfers is 302 billion. This represents a growth rate of 235% from year to date.
“Stablecoins have found product-market fit and are enabling a more global digital economy,” The report stated.
Two predictions that are sure to come true will make you feel confident.
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