Solana Tokenized Assets Jump From $700M to $4.3B in a Year

In one year, real-world tokenized assets on Solana increased from around 700 million to 4.3 billion dollars, according to Castle Labs. The network thus narrows the gap with Ethereum and now represents 26% of its tokenized value, compared to only 4.5% a year earlier. However, this growth has paused since last month.

Solana narrows gap with Ethereum

At the end of September, tokenized assets on Solana reached a record $4.6 billion, according to rwa.xyz. In its report, Castle Labs reviews this spectacular growth, which multiplied the total value by more than six times in twelve months.

More precisely, the increase from 700 million to 4.3 billion dollars represents an increase of about 514%, not 600%. As the figures are rounded, this estimate remains indicative.

At the same time, Ethereum grew more modestly, rising from 15.5 to 16.6 billion dollars, about 7%. As a result, Solana now accounts for 26% of Ethereum’s tokenized value, compared to 4.5% a year earlier. The gap remains significant since the rival network still weighs nearly four times as much. Nevertheless, Solana is clearly gaining ground.

Stable value, but more activity

According to data from rwa.xyz, Solana shows approximately 4.39 billion dollars in tokenized assets as of mid-October. However, their value slightly declined over the past thirty days. In other words, most of the annual growth now seems behind the network, at least temporarily.

Activity remains dynamic though. In one month, the number of holders jumped 46%, exceeding 907,000 addresses. Meanwhile, transfer volume increased by 47%, reaching 9.09 billion dollars.

This evolution shows that adoption continues despite the stagnation of total value. Furthermore, at the beginning of September, Solana led net flows of tokenized real-world assets. The network notably hosts tokenized financial securities, credit products, and yield-generating instruments.

Is tokenization enough to support SOL?

This growth does not guarantee a rise in the SOL price. Indeed, the increase in tokenized asset value does not automatically translate to purchases of the native token. What follows will notably depend on the arrival of new issuers, available liquidity, and application development.

Tokenized stocks illustrate this mixed dynamic. Their value rose from 63 to 455 million dollars in one year, after a peak of 540 million in early September. They thus remain below their recent peak.

Moreover, Castle Labs estimates application revenues at 193 million dollars over thirty days, while other calculation methods suggest 163 million.

Finally, Solana must contend with ongoing competition, notably from other blockchains gaining ground, as highlighted by this analysis of BNB Chain versus Ethereum and Solana. To maintain its progress, the network will need to attract new players and retain those who already trust it.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.