RWA grows explosively while DeFi TVL falls by 54%

The gap between DeFi and tokenised real-world assets (RWA) is widening. Since the start of 2025, the market has shown a clear divide: DeFi is under pressure, while RWA continues to grow and has become an increasingly significant source of liquidity on the blockchain.

In short:

• DeFi TVL has fallen by approximately 54% from its peak of around $170 billion in autumn 2025.
• The market capitalisation of RWA on the blockchain has risen by more than 550% since the start of 2025.
• RWA is developing from a niche segment into a full-fledged source of on-chain liquidity.

DeFi loses ground after 2025 peak

In autumn 2025, the total value locked in DeFi protocols reached a local peak of around $170 billion. Since then, this figure has fallen sharply. On 11 August 2026, DeFi TVL stands at roughly $75 billion, a decline of approximately 54% from that high point.

The downturn is visible across a broad front. DeFi platforms are grappling with waning interest and lower capital inflows, resulting in a structural decline in locked capital. This comes as the broader crypto market undergoes new developments over the same period.

RWA continues its strong advance

At the other end of the spectrum, the RWA sector shows a very different picture. While the on-chain market capitalisation of tokenised real-world assets was still relatively modest at the start of 2025, this segment has grown by more than 550% since then. By the end of August 2026, RWA capitalisation stands at approximately $32 billion, according to data from CryptoRank.io and DefiLlama.

Tokenised real-world assets are digital representations of physical or financial assets, such as government bonds, real estate or credit, that are recorded on a blockchain. The growing interest from both institutional players and retail users is driving the continued development of this segment. Earlier data already showed that RWA trading volume on perp DEX platforms reached a record high in July, confirming the broader advance of this segment.

The divergence between DeFi and RWA suggests that capital is repositioning within the crypto market. RWA is becoming increasingly attractive as an alternative to traditional DeFi protocols, partly because it offers a direct link to the real economy.