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How Polkadot Wants to Dominate Real-World Assets Tokenization

Published

4 weeks ago

June 10, 2024

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Polkadot (DOT), a pioneering layer-0 blockchain, is making significant strides in tokenizing real-world assets (RWA).

Amid the growing buzz surrounding RWA tokenization, industry experts believe Polkadot has the potential to be a market leader. Several projects in its ecosystem also support this view.

Key Insights into Polkadot’s Role in Real-World Asset Tokenization

Polkadot’s architecture, designed for interoperability and scalability, is ideal for tokenizing assets like real estate, commodities, and intellectual property. The JAM Whitepaper (Polkadot 2.0) could further solidify Polkadot’s position in the RWA tokenization market. This initiative bridges traditional finance with the crypto economy, providing a compliant, secure, and scalable solution for asset tokenization.

Crypto analyst Michaël van de Poppe recently discussed Polkadot’s impact on the sector. He highlighted Polkadot’s Software Development Kit (SDK) as a highly popular tool in the crypto ecosystem.

The SDK allows developers to build projects with minimal investment in blockchain technology. Consequently, this ease of use facilitates RWA integration into the Polkadot network, using the SDK to establish a strong framework for asset tokenization.

“In the meantime, Polkadot has been providing some interesting RWA integrations, as the SDK has been used for those,” he noted.

Polkadot’s ecosystem includes several noteworthy projects focused on RWA tokenization. Energy Web, for instance, tokenizes green and renewable energy assets. The project aims to accelerate the energy transition by deploying open-source Web3 technologies and integrating distributed energy resources into the grid.

One standout project in Polkadot’s RWA ecosystem is Xcavate, which democratizes real estate investment and makes it more accessible to a broader audience. Using the Polkadot SDK, Xcavate automates token transfers and mitigates counterparty risks. Furthermore, the project ensures global access to early-stage real estate investments with low entry barriers.

Another significant project is the layer-1 (L1) application chain Phyken Network. Phyken focuses on bringing green and renewable energy assets on-chain, fractionalizing them, and making them accessible to millions of investors. The project employs a novel know-your-customer (KYC) mechanism using decentralized identities and institutional-grade verifiable credentials to ensure asset authenticity and ownership.

Additionally, Centrifuge, one of the most popular RWA tokenization projects within the Polkadot ecosystem, ranks seventh in market capitalization among similar projects. Centrifuge provides liquidity to small and medium-sized enterprises (SMEs) by enabling them to tokenize real-world assets like invoices, which can be used as collateral for financing.

Industry Insights and Future Prospects

Real-world asset tokenization involves converting tangible and intangible assets into digital tokens tradable on a blockchain. This process simplifies transactions, adds liquidity to traditionally illiquid assets, and ensures transparency and security. Therefore, industry experts believe tokenizing real-world assets is crucial for the mass adoption of blockchain technology.

Larry Fink, CEO of BlackRock, has emphasized the potential of tokenization to revolutionize financial instruments. He envisions a future where every stock and bond has a unique identifier on a blockchain. This would allow for customized investment strategies and instantaneous settlements.

Jenny Johnson, CEO of Franklin Templeton, also highlighted the transformative potential of tokenizing real-world assets. She cited examples such as Rihanna’s NFT royalties and loyalty programs at St. Regis in Aspen.

These examples demonstrate the technology’s ability to lower entry points and operational costs. They also make professional asset management more accessible to younger investors.

Real-World Asset Tokenization Market Forecast. Source: KPMG

According to a report by KPMG, the potential to tokenize global illiquid assets is a multi-trillion-dollar opportunity. The market is expected to grow significantly by 2030, with forecasts suggesting an increase from the 2023 baseline by at least 28 to 80 times. Expanding adoption and positive regulatory discussions will also further drive this growth.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

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Related Topics:Assets Dominate Polkadot RealWorld Tokenization

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LayerZero On The Rise: ZRO Bullish Momentum Points To New Highs

Published

3 hours ago

July 6, 2024

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LayerZero (ZRO) is currently experiencing strong bullish momentum, positioning itself for potential new highs in the future. This sustained upward trend indicates growing investor confidence and increased market interest in the platform’s capabilities.

As ZRO continues to gain traction, technical indicators suggest that this momentum could drive the price to unprecedented levels. Traders and investors are closely monitoring this movement, anticipating further gains and strategic opportunities as LayerZero pushes toward new market peaks.

This article delves into providing an in-depth analysis of ZRO’s current bullish momentum and its potential to reach new highs. By examining current price performance and technical indicators, this article seeks to provide strategic advice for investors looking to capitalize on ZRO’s potential growth.

ZRO was trading at around $4.15 and was up by 36.66% with a market capitalization of over $456 million and a trading volume of over $816 million as of the time of writing. There has been a 24-hour increase of 36.62% and 152.75% in ZRO’s market capitalization and trading volume respectively.

Analyzing The Current Bullish Trend Of ZRO

A technical analysis of ZRO’s price action on the 1-hour chart reveals that the crypto asset is actively bullish and trading above the 100-day Simple Moving Average (SMA). Since facing rejection at the $2.69 support level, ZRO has been consistently bullish and is currently attempting to break above the $4.28 resistance level.

The formation of the 1-hour William alligator signals that the price of ZRO may continue to extend its bullish trend as both the alligator lip and teeth are currently trending above the jaw after a successful cross above it.

On the 4-hour chart, it can be observed that ZRO is actively bullish. Although the price is attempting a short-term pullback by dropping a bearish candlestick, the crypto asset may extend its bullishness in the long run.

Additionally, the 4-hour William alligator indicates more bearishness for ZRO as both the alligator lip and teeth are actively trending above the jaw after moving above it.

ZRO Price Forecast

Analyzing potential future possibilities of ZRO’s price movement reveals that if the digital asset breaks above the $4.28 resistance level, it may move higher to challenge its all-time high of $5.62. If this level is breached, ZRO might move on to create a new all-time high.

However, if the price of ZRO experiences rejection at the $4.28 resistance level, it will begin to descend toward the $3.27 support level. Should the asset breach this level, it may continue to decline to test the $2.69 support level and possibly move on to test other higher levels if it breaches the $2.69 level.

ZRO

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Market

This Is How Ripple (XRP) Price Recovery Will Take Place

Published

5 hours ago

July 6, 2024

admin

Ripple (XRP) price momentum has turned bearish, and its potential for recovery has also cooled down.

One of the biggest reasons is the lack of activity among XRP holders, rendering their optimism useless.

Ripple Investors Try but Not Too Hard

XRP price is bound to be impacted by both the attempt and lack of participation noted among the investors. The presence of XRP holders remains weak, affecting the potential for recovery.

The low level of engagement is evident, with active addresses averaging under 20,000 on a daily basis. This lack of activity suggests a decrease in short-term trading and concern about bearing losses.

However, despite the weak participation, conviction among XRP holders remains strong. This is reflected in the Mean Coin Age (MCA), which has noted an uptick. The increasing MCA indicates that investors are holding onto their XRP for longer periods, showing faith in the asset’s future potential.

The rise in MCA also suggests that investors are refraining from moving their holdings around. By holding their assets rather than engaging in frequent transactions, they demonstrate a long-term belief in XRP. This behavior is often indicative of confidence in the cryptocurrency’s eventual recovery.

While the current low level of daily active addresses is a concern, the strong conviction shown by the uptick in MCA provides a silver lining. If this trend continues, it could help stabilize XRP’s price and support a potential recovery, as long-term holders typically contribute to market stability.

XRP Price Prediction: Tall Hike Ahead

The XRP price is trading at $0.43, recovering from the lows of $0.41 over the last 24 hours. Based on the aforementioned cues, consolidation is likely under $0.46. A breach, however, could help recover the recent losses.

XRP Price Analysis. Source: Tradi n gView

But if the bearish cues continue to dominate the altcoin, the XRP price could lose the critical support of $0.41 again. This would invalidate the bullish-neutral thesis, resulting in further drawdown.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.

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Market

Shiba Inu (SHIB) Price Recovery Likely as Losses Run up by 42%

Published

6 hours ago

July 6, 2024

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Shiba Inu’s (SHIB) price is bouncing back from four-month lows, looking to recover the losses witnessed in the past month.

Investors also have a shot at making the most of this opportunity, as selling will likely take a break for now.

Shiba Inu Investors Lose Big

While Shiba Inu’s price only declined by 15% over the last week, the impact on investors was three times larger. The total supply in profit dropped by close to 42%, falling from 75% to 33% in a day.

This is because about 434 trillion SHIB, worth $6.7 billion, was bought between $0.00001900 and $0.00001500. As the meme coin slipped to $0.00001281 during intra-day lows yesterday, this supply lost its profitability completely. This will keep investors from selling now, as such a large supply would only be sold when it bears profit again.

Shiba Inu Supply In Profit. Source: Santiment

Furthermore, most investors anticipating recovery and profits will likely turn to accumulation. The Market Value to Realized Value (MVRV) ratio suggests a good opportunity to do so.

The MVRV ratio assesses investor profit and loss. Currently, Shiba Inu’s 30-day MVRV stands at -14.5%, indicating losses, which may lead to buying pressure.

Historically, SHIB’s MVRV between -7% and -18% usually signals the start of recoveries and rallies, marking an opportunity zone for accumulation. This could help steer Shiba Inu’s price upwards.

SHIB Price Prediction: The Critical Range

The range between $0.00001473 and $0.00002093 is critical to Shiba Inu’s price as it houses 73% of all SHIB circulating supply. For this reason, the meme coin could find considerable resistance here.

Nevertheless, investors’ attempts to recover their profits would motivate them to push SHIB upwards. Once $0.00002093 is breached, the altcoin would have a shot at profits.

Shiba Inu Price Analysis. Source: TradingView

However, if this breach fails, Shiba Inu’s price might consolidate within this range. This would continue until stronger bullish cues help the coin escape; otherwise, the bullish thesis would be invalidated.

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