RWA tokenization dominates crypto narratives in 2025

RWA tokenization leads crypto narratives in 2025 as most digital asset sectors posted weak or negative returns.

ContentsRWA tokenization outperforms the marketLayer one tokens struggle to keep paceMemes, AI, and gaming face deep lossesTokenized real-world assets stood out amid a slow altcoin market and cautious investor sentiment.

The broader crypto market delivered modest performance in 2025, with few sectors sustaining gains. Investors favored infrastructure, yield, and regulated exposure over speculative growth. This shift shaped market outcomes across all major narratives.

RWA tokenization outperforms the market

RWA tokenization recorded the strongest performance among crypto narratives in 2025. According to Coingecko research, leading RWA tokens gained an average of 185.8% over the year. Demand focused on on-chain access to traditional financial products, including tokenized stocks and treasuries.

Chainlink emerged as a key proxy for tokenized equity exposure, despite not being a pure RWA platform. Smaller tokenization projects maintained modest valuations despite rising usage. ONDO reached a market capitalization of $1.2 billion, even as it became a major hub for real-world asset issuance.

Returns were concentrated among established projects. Smaller RWA tokens underperformed, reflecting limited liquidity and cautious capital allocation. Still, tokenization gained traction as one of the few narratives with sustainable growth. By late 2025, increased interest driven by regulatory clarity and institutional participation.

Layer one tokens struggle to keep pace

Layer one tokens underperformed in 2025, despite continued network usage. Ethereum declined nearly 10% over the past year. Activity grew across stablecoins and lending, yet ETH failed to reach a higher trading range.

Solana dropped over 34% in the past month to $123.52. The network remained active as a trading and meme hub. Price gains, however, proved difficult to sustain. BNB and TRX were exceptions, rising 22% and 9.9% respectively over twelve months.

Smaller layer one networks faced sharper declines. Avalanche fell 66.5% despite plans to expand its DeFi presence. Telegram’s TON dropped 73.4% to $1.52. User growth did not translate into lasting liquidity or valuation support.

Memes, AI, and gaming face deep losses

Memes and AI agents remained popular but posted weak price performance. Meme tokens declined 31.6% on average in 2025. AI agent tokens fell 50.2% year to date. These losses reduced activity across decentralized exchanges.

DEX-related tokens dropped 55.5% amid falling trading volumes. Layer two tokens declined 40.6% on average, even as networks retained users. The Solana ecosystem fell more than 64% as meme trading slowed.

GameFi and DePIN tokens performed the worst. DePIN assets dropped over 95% on average. The AI narrative failed to revive older infrastructure-focused projects.

RWA tokenization proved resilient during a challenging year for crypto markets. Most narratives struggled as capital rotated toward new use cases. The 2025 cycle favored stability, utility, and real-world integration over speculative returns.