Capital inflows related to real-world asset tokenization have leveled off, with Ethereum taking the hardest hit. Solana and XRP are benefiting for now. Tokenized real-world assets on blockchains are expected to drive growth in the crypto sector over the next five years. The decline in assets using blockchains as record-keeping systems is significant for Ethereum, Solana, and XRP.

The process of representing ownership of an asset as a crypto token on a blockchain is known as tokenization. There are distributed assets meant to move around networks and represented assets where the blockchain is used for record-keeping. The sum of represented RWA value across all networks is about $390.9 billion, down by roughly 2% in the last 30 days.

Ethereum still leads in total value of tokenized assets, but the decline in distributed RWA value is concerning. Solana’s RWA value is growing, all in the distributed category. On the XRP Ledger, there is growth in both distributed and represented asset value. Ethereum may face capital outflows, while Solana and XRP could also be impacted if sector-level outflows increase.

Investors should approach tokenized assets with caution as RWAs are cooling off. It’s essential to evaluate trends affecting assets like Ethereum, Solana, and XRP before investing. The Motley Fool Stock Advisor team has identified 10 best stocks for investors to buy now, excluding Ethereum. Their total average return is 1,004%, outperforming the S&P 500.

Read more at Yahoo Finance: 1 New Reason to Be Cautious About Buying Ethereum, Solana, and XRP Right Now