Public equities take 46% of RWA perps as traders avoid newer tokens — Here’s why!
Demand for newer tokens remains limited, but what about the rest?
Have traders been playing a safer game lately?
Capital is moving to established assets as public equities dominate the RWA perpetuals market. Major cryptocurrencies have been returning to profit too. However, with short-term holders (STHs) now in gains, profit-taking risk may be on the up too.
Public equities dominate RWA perps
Public equities have become the clear centre of activity in the RWA perpetuals market. The segment holds about $2 billion in Open Interest, representing 46% of the total market. In fact, they’ve generated roughly $2.2 billion in trading volume over just 24 hours.
That puts stock-based perpetual contracts well ahead of equity indices, precious metals, and oil. Public equities also offer the widest selection, with 411 active markets, compared to 54 for precious metals and 41 for equity indices.
Traders are not using RWA perps equally across every asset class though. Instead, most demand is concentrated around gaining leveraged, round-the-clock exposure to listed companies.
Short-term holders return to profit
At the time of writing, the 30-day MVRV ratios for Bitcoin [BTC], Ethereum [ETH], Cardano [ADA], XRP and Chainlink [LINK] had moved back above neutral. This meant that the average wallet active over the past month may now be on a small profit.
This, on the back of Bitcoin’s rebound towards $65K, helped by softer inflation data, a better risk appetite, and ETF demand.
That is encouraging, but it also changes things. When STHs return to profit, sell pressure can rise as traders begin locking in gains. The press time readings were still far from the stronger sell zone shown on the chart, meaning that the market did not seem overheated yet.
Even so, the easy “buy the fear” phase may be fading.
Most newly launched tokens remain below TGE price
AMBCrypto previously reported that only 7.1% of tokens launched since 2024 are still trading above their TGE price. Of the 113 projects with a market capitalization above $100 million, just eight remain profitable for early buyers, while 105 are already in the red.
Clearly, it has been difficult for newer tokens to maintain the valuations set at launch. In many cases, early hype has been followed by sell pressure.
This also helps explain why traders are leaning towards established assets. While major coins are returning to profit, most recent token launches continue to struggle. For investors, strong post-launch performance remains the exception rather than the rule.
Final Summary
- Public equities control 46% of RWA perpetual Open Interest.
- Major cryptocurrencies are back in short-term profit; only 7.1% of tokens launched since 2024 remain above their TGE price.
