The RWA market is evolving rapidly, according to a new report shared today by institutional platform GSR. Although Ethereum continues to lead the sector, the new data revealed that its dominance has declined as other major crypto networks gain significant market relevance.
Ethereum’s grip loosens in RWA tokenization
The data shows an alarming trend: Ethereum’s dominance in the RWA sector has fallen by almost 30% over the past year. The blockchain remains the dominant network, accounting for over 40% of RWA market cap.
Ethereum’s dominance has dropped sharply from 71% 12 months ago to 40% today. While the decline from 71% appears huge, the network still controls a large portion of the RWA market. This decline is driven mainly by a key, healthy market dynamic: multichain expansion.
Multichain expansion is becoming more evident as the wider crypto landscape matures. Specialized Layer-1 networks are developing niches for tokenized assets (such as commodities, treasury bills, real estate, and more).
Ethereum’s declining share of the RWA market indicates a maturing, diversifying on-chain economy. Financial institutions and asset managers are increasingly building tokenized asset applications on other major Layer-1 networks.
Rivals gain ground in key segments
While Ethereum benefits most as the RWA base layer, competitors are gaining relevance in the RWA space. Beyond Ethereum, the GSR report shows institutions trust BNB Chain, Solana, Stellar, and Avalanche to run their tokenized utilities.
Institutions increasingly use these chains as alternative Layer-1 infrastructure because of their low cost, scalability, speed, and Ethereum compatibility.
BNB Chain, Solana, Stellar, and Avalanche’s popularity in the RWA sector isn’t by accident. It comes down to core infrastructure design, which is why major institutions are choosing them to run their RWAs on-chain.
These chains offer the best of both worlds: the security of Ethereum and the scalability required for institutional-level transactions. As global institutions continue to assess the benefits of tokenized applications and blockchain-based asset management, BNB Chain, Solana, Stellar, and Avalanche stand out as preferred infrastructures, offering an ideal mix of scalability, low-cost transactions, speed, and trust.
This shows that blockchain is more than crypto; it’s about real-world finance, real-world applications, and real-world value.