Naomi Gonzales
Crypto and stock markets are on the agenda with inflation and high-interest rates due to falling trade. There is also the possibility that higher interest rates will reduce valuations. For this reason, it is normal for crypto and exchanges to constantly change.
The crypto market fell below $1.3 trillion in total within a few days of the market shakedown. Bitcoin, Ethereum, Solana, Cardano, Binance, and many more have faced a loss of half the value of common cryptocurrencies.
It has been seen that Terra has also lost with these situations. In addition, LUNA, which has an important position in the market, keeps its value at an extremely low level like other coin types. For this reason, even LUNA, which is among the top 10 cryptocurrencies in the market, has dropped to 225th in the market due to losing about 98% of its value.
These effects do not only occur in cryptocurrencies. Even decentralized finance, DeFi, in particular, suffers from sudden market changes. Currently, DeFi has a market cap of $112.46 billion. But at the beginning of May, it is known that the value of DeFi is 195.33 billion US dollars. As you can see, this decrease is quite significant.
The traditional finance (TradFi) market is also not performing well in this situation. There has been a substantial drop this month, as seen in both the Dow Jones Industrial Average and the NASDAQ Composite. In particular, the S&P 500 is experiencing a decline it has not experienced in a year for the first time. Along with these increases, there are also false sales due to the panic of investors. It is not predicted how long this situation in the market will last.
Real-World Assets That Challenge Market Volatility
As the market continues to decline, real-world assets that come to the fore as tokenized maintain the ground at the beginning of the industry. Real-world assets that are tokenized do not have a direct relationship with cryptocurrencies or stocks in the market. In this way, real-world assets don’t affect the volatility of the market.
Along with tokenization, real-world assets have also made it possible to bridge the constantly evolving and growing DeFi market. Real-world assets, which are independent of market conditions, provide stable rates to investors, helping them to generate income.
While several projects are currently making progress by facilitating the tokenization of real-world assets, in this case, the emerging decentralized lending protocol Centrifuge is moving forward in this regard independently of the asset that tokenizes large-world assets into the DeFi space. In this way, it aims to create a new summit with this service.
Real-world assets enable people to trade and invest in a more stress-free way. In addition, for investors who are worried about market shocks, it will be very easy to adapt to the market and have a better process thanks to this option. The details of this situation, which came out with many methods and protocols, continue to be explained day by day.