Analysis: 2 Ultra High Potential Small Cap RWA Altcoins

Are you ready for this massive leg up? Get a massive return on your tokens? Well, RWA is the place to be. It’s currently one of the hottest sectors in crypto. BlackRock, invested into RWAs. In case you don’t know them yet, they’re one of the biggest financial investment firms in the world. They launched their Buidl Fund earlier this year. That’s the BlackRock USD Institutional Digital Liquidity Fund. Its treasury has already over $500 million. And one more time, in case you missed it, the Boston Consulting Group. They project a $16 trillion market by 2030 for RWAs. By that time, that should represent 10% of the global GDP.

So, which RWA projects will benefit most from that growth? My team and I found two small cap RWA projects for you. This is where the biggest gains are possible. So, without further ado, let’s dive straight in and look at these small cap RWA projects.

What Is RWA?

An RWA is a Real-World Asset. However, you bring it on-chain by tokenizing it. In other words, you make an NFT out of it. This has a couple of advantages, for instance,

• You can tokenize anything — From real estate to art or financial instruments. For example, T-bills or invoices.
• Fractionalize the RWA — This allows more people access to an RWA. For example, real estate or a piece of art. You may not be able to own all of it, but your budget allows for a fraction of ownership. 
• Worldwide access — Once you put the RWAs online, there are no borders anymore. You can trade your assets from the comfort of your chair at home, all around the world.

So, here are my two small cap RWA picks for today.

Polytrade ($TRADE)

My first small cap RWA pic is Polytrade ($TRADE). Polytrade is an active RWA platform. Its team keeps building and adding new features. That’s what I like to see. It’s also a reason why I have Polytrade on today’s list.

Polytrade has an RWA marketplace, which is currently in its V2.0 version. Their V2.0 marketplace has two verticals, an RWA marketplace and Institutional Technology.

Polytrade also has its own ERC-6960 token. This allows, among other things, for tokenizing RWAs and to fractionalize them. In other words, it wraps ERC-20, ERC-721s, or ERC-1155 tokens. Furthermore, you can also trade, cross-chain bridge, or leverage RWAs with this token. The Polytrade RWA marketplace has two different asset categories.

1. Discovery Assets — You can explore them and buy them; in case you like them. This is where Polytrade works as an aggregator. It integrates with platforms like Uniswap, Balancer, or OpenSea. It also has assets in discovery on platforms like Goldfinch, Clearpool, or Unikura. See their blog.
2. Secondary Assets — This is Polytrade’s native marketplace. Polytrade lists Secondary Assets as ERC-6960 tokens. There are various protocols with assets in secondary mode. For example, Aurus, Tiamonds, or Blockbar. When you buy or sell on their marketplace, you earn XP and climb their leaderboard. RWA loot boxes are coming soon.

Source: Polytrade Marketplace

Polytrade Use Cases

• So, on their marketplace, you have various RWA assets in one location. The protocol also has various use cases. For instance,
• SME Financing — These are small and medium-sized enterprises. They can have a hard time with liquidity. This can be due to delayed invoice payments. However, tokenizing these invoices provides liquidity for these SMEs.  
• Investor opportunities — Individuals and institutions can find unique investment opportunities. Contributing to a liquidity pool, you can earn interesting rewards.
• Cross-border trade — Smart contracts automate this process. They make it secure, tamper-proof, and reduce fraud risks.

The $TRADE Token

The current $TRADE price is 51 cents. Its market cap is $19.4 million. Out of a 100 million total supply, 37 million tokens already circulate. Its ATH was $3.03 in April this year. That’s only a 6x from here. $TRADE can do much better than that! So, how do you like this first small cap RWA project?

Clearpool ($CPOOL)

Clearpool ($CPOOL) is my next small cap RWA project to review. It’s a decentralized credit marketplace. Just like Polytrade, the Clearpool team keeps building. For example, Ozean, an RWA yield chain on Optimism. More on this in a moment. The team has a TradFi background.

Clearpool offers a DeFi marketplace for unsecured institutional liquidity. This allows institutions to raise short-term capital. In the meantime, lenders have access to risk-adjusted returns. Clearpool is also compliant. So, this means that there’s a KYC procedure to follow.

It offers credit vaults and dynamic pools. They have a combined TVL of $66.8 million. There’s a risk assessment system in place that determines the interest rates. Clearpool opens the doors to the credit market. Traditionally, retail investors never had access to this.

There’s also Clearpool Prime, only available for whitelisted institutions. Borrowers don’t need to put down collateral. They can create a pool and invite whitelisted institutions to fund the pool. 

It has fixed interest rates when the pool deploys. Lenders can only fund a pool to which they’re invited to. This runs on nine different chains. For instance, Ethereum, Polygon, Avalanche, Optimism, or Base.

Ozean

But back to Ozean. This launched in late March. It’s the first blockchain for RWA yield, built on and supported by Optimism. But built by the Clearpool team. It offers, among others,

• Native yield with $USDX. This is a stablecoin, used on their platform. You can lock this for $ozUSD, which is yield-bearing. 
• There’s an optional compliance layer for projects that require this.
• Gas abstraction — everything functions through $USDX. It allows you to set an address from which you pay gas. Or a dApp can pay the gas fees. 
• Account abstraction with Ozean’s native custodian wallet. This wallet has no transaction fees. However, there’s a licensed custodian. That’s Hex Trust, who handles everything related to the stablecoin. Like native yields.
• Users will be able to earn revenue from sequencer fees. 

The $CPOOL Token

1The current $CPOOL price is 11 cents. This comes with a $69.6 million market cap. Out of the max supply of 1 billion tokens, 604 million already circulate.

So, are you familiar with these two RWA protocols? Which one is your favorite, and why?

Disclaimer

The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers, and their risk tolerance may be different from yours.

We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments, so please do your due diligence.

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