RWA Tokenization Emerges as Next Liquidity Channel for Crypto Bull Cycle

Real-world asset tokenization is emerging as the next major liquidity channel for crypto markets, potentially driving the next bull cycle as ETF and stablecoin inflows plateau, according to a Woofun AI analysis. The report notes RWA tokenized assets grew roughly two-fold to over $30 billion in the past year, even during stablecoin supply contractions. Unlike prior channels that directly bought specific assets, tokenization brings institutional funds on-chain first, allowing broader allocation later, though current inflows remain about one-tenth of ETF and DAT peaks. Historically, each bull cycle relied on a dominant new liquidity channel, with inflows peaking 20-60 months after formation. RWA is only 18 months old, still early but outpacing DAT's comparable stage. Its impact may be milder but more sustained, as institutional holders favor long-term positioning over speculative trading.