Funds are shifting from DeFi to RWA, reflecting internal market rotation

On February 20, according to Decrypt, tokenized real-world assets (RWA) grew by 8.7% over the past month to $24.8 billion, while the total value locked (TVL) in decentralized finance (DeFi) fell by 25% over the same period to $94.8 billion. Data from RWA.xyz shows that the value of tokenized U.S. Treasuries, commodities, and private credit distributed assets increased by 10%, 20%, and 15% respectively, reaching $10.7 billion, $6.9 billion, and $2.9 billion. Sergej Kunz, co-founder of 1inch, stated that the capital flows reflect internal rotation within the crypto ecosystem rather than an exit, and tokenized Treasuries offer a 4% on-chain return with relatively low risk. Programmable Credit Protocol CEO Rico van der Veen pointed out that RWA protocols provide enforceable rights, regulatory clarity, and stable cash flows.