Chainlink, RDAC, ONDO: These 3 RWA Altcoins Could Rally after US Fed Rate Cut

RWA Tokens to Watch in 2024

Real World Assets (RWA) / Asset Tokenization sector has reached $7.8 billion valuation in July 2024, with Crypto investors are anticipation a US Fed rate cut in H2, recent market movements suggest Chainlink (LINK), Redacted (RDAC) and Ondo Finance, could emerge front-runners in H2 2024.

Real World Asset Tokenization (RWA) Sector Hits $7.8B Valuation

In 2024, the Real World Assets (RWA), Asset Tokenization sector emerged as one of the most dominant themes in crypto. The RWA sector refers to projects focused on bringing real-world physical and financial assets as digital tokens on a blockchain.

This allows these assets to be more easily traded, transferred, and managed within a decentralized digital ecosystem. The sector involves innovative technical to integrate off-chain data on assets such as real estate, commodities, bonds, equities, and even art, into on-chain protocols and DeFi transactions.

The likes of Blackrock have committed to strategically collaborating with crypto-native protocols to bring trillions in real-world commodities and securities to the blockchain.

By facilitating the seamless rendering and integration of relevant off-chain data into on-chain protocols, projects like Chainlink (LINK), Redacted (RDAC), and Ondo Finance (ONDO) have emerged as RWA/Tokenization front-runners.

Let’s explore the key internal catalysts that could drive up their prices in the second half of the year as 2024 unfolds.

Chainlink (LINK): Bridging Traditional Finance and DeFi with Decentralized Oracles

Within the Real World Asset (RWA) sector, Chainlink’s role is particularly significant. RWAs refer to the tokenization of physical assets like real estate, commodities, and even intellectual property, bringing these tangible assets onto the blockchain. Chainlink’s decentralized oracles ensure that the data representing these physical assets on the blockchain is accurate and trustworthy.

For instance, Chainlink can provide real-time market data to verify the value of tokenized assets, facilitate automated payouts in decentralized insurance contracts, and ensure transparent and tamper-proof records in supply chain management.

By bridging real-world data with blockchain technology, Chainlink is essential in advancing the adoption and integration of RWAs within the decentralized finance (DeFi) landscape

The anticipation of a US Fed rate cut, along with potential approval of Ethereum ETFs, could further bolster investor confidence, potentially pushing Chainlink’s price towards new highs. According to forecasts, LINK is expected to trade between $11.71 and $27.61 by the end of 2024, reflecting the growing confidence in its ecosystem​​.

Redacted ($RDAC): Aiming to be the Google AdSense of Web3

Redacted (RDAC), a lesser-known but potent player in the RWA sector, focuses on creating an infrastructure for decentralized finance (DeFi) governance and treasury management.

The leadership team’s proven track record, having launched NFTs with over $40 million in trading volume, further bolsters confidence in RDAC’s potential. Moreover, recent funding of $10 million led by notable investors such as Spartan VC, Animoca Brands, and Polygon Ventures, underscores strong market confidence.

As lower interest rates typically drive investors towards higher-yielding assets, RDAC’s diverse ecosystem, powered by the $RDAC token, stands to attract significant interest.

Its innovative approach to aggregating on-chain and off-chain data positions RDAC makes it key player in the evolving RWA landscape.

Leveraging blockchain and AI, Redacted’s comprehensive gaming and entertainment ecosystem is underpinned by a data protocol to provide richer, more targeted user experiences and commercial opportunities for web3 companies and dApps.

The high-energy startup gathered over 250K followers within a few weeks, with more than 150 of web3’s top “Who’s Who” including Dingaling, and Grail, posting “Redacted” profile pictures displaying their support of the company’s vision.

Redacted has recently raised $10 million in funding from some of the industry’s biggest names in an investment round led by Spartan Group, with participation from Saison Capital, Animoca Brands, and Polygon Ventures.

A US Fed rate cut could lower borrowing costs, making it cheaper for investors to leverage capital within DeFi platforms like Redacted, potentially driving up RDAC’s value. Additionally, the broader acceptance of tokenized assets could attract institutional investors, further boosting its market capitalization.

Ondo Finance (ONDO)

Ondo Finance is a pioneering platform in the decentralized finance (DeFi) space, focusing on providing secure and high-yield investment products through the tokenization of real-world assets.

Ondo Finance offers innovative solutions like tokenized treasuries, which allow investors to gain exposure to traditional fixed-income assets through blockchain technology. This approach not only democratizes access to these investment opportunities but also enhances liquidity and efficiency in the market.

In the RWA sector, Ondo Finance plays a crucial role by bridging traditional finance with the DeFi ecosystem. By tokenizing treasuries and other fixed-income assets, Ondo Finance provides a reliable and transparent method for investors to diversify their portfolios with real-world assets on the blockchain. This tokenization process enhances the accessibility and liquidity of traditionally illiquid assets, making them more attractive to a broader range of investors.

The project’s collaboration with major financial institutions to tokenize and trade real-world assets on-chain is a crucial growth catalyst. With the potential for a US Fed rate cut, the lowered interest rates could enhance the attractiveness of Ondo’s yield-generating products, driving more capital into its ecosystem. Furthermore, the approval of Ethereum ETFs could facilitate easier access to ONDO tokens for traditional investors, potentially increasing demand and driving up prices.