The Market Value Of Commodity-Based Cryptocurrencies Has Surpassed 11 Billion Dollars

(MENAFN- B2Press) Gate's Director of Global Growth, Kafkas Sönmez: "After precious metals, uranium has also been moved to the blockchain"

TURKEY - The concept of tokenization, which describes the process of making real-world assets like real estate, precious metals, and commodity-backed securities accessible on the blockchain, has become one of the ecosystem's headlines for 2024. A recent report showed that the market value of commodity-based cryptocurrencies has exceeded 11 billion dollars.

A new report on the concept of tokenization, which foresees the movement of securities with intrinsic value, real estate assets, and commodities like gold and silver to the blockchain as an investment tool, has been published. According to the Real World Assets (RWA) Report 2024 prepared by CoinGecko, the market value of commodity-based cryptocurrencies has surpassed 11 billion dollars. The report also revealed that cryptocurrencies backed by real gold are among the most popular projects, showing that treasury products traded on the blockchain gained 641% in value in 2023.

Kafkas Sönmez, Director of Global Growth at Gate, shared his thoughts on tokenization: "Tokenization turned into one of the ecosystem's top priorities with the launch of the first stablecoins pegged to the dollar and the emergence of decentralized finance. Today, 99% of crypto projects pegged to fiat currencies are based on the dollar."

Uranium has been moved to the blockchain

The report highlighted that commodity-based cryptocurrency projects mainly prefer precious metals like gold and silver. Kafkas Sönmez emphasized that tokenization, by its nature, transforms less liquid and hence more difficult to access assets into highly liquid assets. "The concept of tokenization, which describes moving real-world assets to the blockchain, is emerging as one of the fastest diversifying and most innovative idea-hosting areas in the blockchain ecosystem. Despite the market dominance of precious metals, it's possible to find projects focusing on different commodities. For example, one project developed a uranium-based cryptocurrency pegged to the value of 1 pound of uranium compound. It's important not to consider it merely as a commodity; thanks to tokenization, products from traditional finance and investment areas like artworks, real estate, and credit securities can start being traded on the blockchain," he said.

Tokenization will create a 16 trillion dollar market by 2030

Another report by BCG predicts that this tokenization will create a 16 trillion dollar market by 2030. Kafkas Sönmez explained that investors looking to diversify their portfolios are turning to these cryptocurrencies, which are rooted in and have intrinsic value derived directly from their real-world counterparts. "Projects developed with the power of decentralized finance in response to losses on centralized exchanges in 2022 have provided a source of funding. For instance, introducing a traditional investor, who believes in the enduring value of gold, to a blockchain project whose power and value are derived from gold, is among the factors supporting crypto adoption. The movement of real-world assets to the blockchain is attracting more investors to crypto exchanges, creating new economic value," he stated.

"Tokenization maximizes the blockchain's value proposition"

Gate's Director of Global Growth, Kafkas Sönmez, concluded his remarks by saying: "The main goal of tokenization and the movement of real-world assets is to bridge our physical planet with the blockchain, while maintaining decentralization and eliminating intermediaries. By moving assets recognized for their intrinsic value to the blockchain, it effectively doubles this value and introduces new investors to the ecosystem. It also ensures transparency and mathematical trust. When all these aspects come together, we see that tokenization democratizes finance and investment, making it accessible to a wider audience and thereby supporting an increase in the number of investors. Tokenization takes on the role of elevating the blockchain's value proposition to its highest level. For example, moving a piece of real estate onto the blockchain creates new economic value. In reality, everyone who wouldn't own that real estate can invest in tokenized assets with a few steps. At Gate, we continue to increase the number of cryptocurrency projects listed on our platform that are based on real-world assets, exploring the opportunities in this technology with our more than 14 million users worldwide."

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