Tokenized Credit Market Shrinks by 2.8% Despite Increase in Holding Addresses
Written with artificial intelligence.
The tokenized credit market decreased by 2.8% in the third quarter, bringing its size to $6.17 billion as of October 1. However, the number of unique holding addresses rose by 12.1% to 28,840, according to a report from RWA Foundation.
Market Overview
As of October 1, the tokenized credit market is valued at $6.17 billion, down from $6.35 billion on July 3, which reflects a 2.8% decrease. Despite this decline in market size, unique holding addresses have increased by 12.1%, now totaling 28,840.
Data Insights
The report cited by CryptoBriefing from RWA Foundation indicates that the market figures are compiled using data from Token Terminal, which includes circulating market cap and assets under management (AUM). However, it is important to note that the increase in holding addresses does not necessarily equate to a rise in the number of individual investors, as one person can own multiple wallets.
Address and Market Dynamics
The report also emphasizes that without accompanying data on the amount held per address or transaction activity, it is challenging to assess the implications of the market size reduction alongside the growth in addresses. Additionally, variations in market size figures can occur based on the methodology and source of the data. RWA.xyz defines tokenized credit as non-government debt assets, including private credit, on-chain loans, corporate credit, and structured credit.
Issuer Market Shares
According to the report, the market shares for leading issuers are as follows: Tradable at 36.9%, Maple Finance at 23.5%, Centrifuge at 9.9%, and Hastra at 9.6%. The combined share of the top two issuers stands at 60.4%. Notably, while Maple Finance saw a decrease in market size by $4.27 million, it experienced an increase of 2,160 in holding addresses. Conversely, Hastra and USDai combined for a market size increase of $37.25 million.
Conclusion
The distinctions between address counts and actual participant numbers are crucial, as evidenced by previous reports on tokenized asset holdings. Understanding the dynamics of the tokenized credit market requires careful consideration of various metrics, including market size, wallet addresses, issuer shares, and collateral utilization rates.