RWA Sector TVL Surpasses DEX, Enters Top Five DeFi Verticals

December 29, 2025 — Data shows the Real World Assets (RWA) sector has emerged as one of DeFi’s fastest-growing segments this year. Per DefiLlama, RWA now ranks as the fifth-largest DeFi category by Total Value Locked (TVL), having overtaken decentralized exchanges (DEXs). Currently, RWA TVL stands at ~$17 billion, up sharply from ~$12 billion in Q4 2024. DefiLlama notes RWA wasn’t even in the top 10 DeFi sectors at the start of 2025, marking its rapid shift from experimental niche to core DeFi infrastructure. Kronos Research CIO Vincent Liu says RWA’s growth is driven primarily by balance sheet demand, not conceptual experimentation. In a “higher rates for longer” environment, tokenized U.S. Treasuries and private credit have become attractive on-chain yield assets—while clearer regulation has also cut friction for institutional entry. Structurally, Ethereum remains the primary network for RWA issuance and settlement, with public chains like BNB Chain, Avalanche, Solana, Polygon, and Arbitrum holding smaller shares. Meanwhile, permissioned networks like Canton Network dominate the institutional space. Analysts note tokenized U.S. Treasuries remain RWA’s core entry product. As gold and silver prices strengthen, tokenized commodities are drawing more capital. By 2026, RWA is expected to shift further from the “yield narrative” to macro assets and neutral collateral.