RedStone Report: Returns in Cryptocurrencies are Increasing

Although the share of assets generating returns in the crypto market is still low, a rapid transformation has begun in the sector according to RedStone analysis. A new report published by the modular oracle network RedStone reveals that only 8-11% of crypto assets are currently able to generate returns, while this rate in the traditional finance system stands at 55-65%. This gap of approximately 5 to 6 times is starting to close with the swift onboarding of stablecoins, blue-chip staking products, and tokenized real-world assets that have the potential to provide returns.

The stablecoins, known as the "cash leg" of the crypto ecosystem, have now reached a volume of over 290 billion dollars. However, according to RedStone, a new era is opening: the class of yield-generating stablecoins has shown approximately 300% growth within a year. While the demand for liquid staking on Ethereum and Solana is increasing, new-generation yield models for Bitcoin are also being developed. The tokenization of real-world assets contributes to growth by connecting the traditional returns of assets such as treasury bonds and real estate to the DeFi infrastructure. Deloitte's tokenization forecast of 4 trillion dollars for 2035 and Ripple's expectation of 19 trillion dollars showcase the potential in this area.

RedStone's report states that yield-generating assets are shifting from niche products to becoming the assumed format of on-chain value storage methods. The increase of 34 billion dollars in liquid staking tokens on Ethereum since 2023 and the leap of liquid restaking protocols like EigenLayer from 1 billion dollars to 22 billion dollars demonstrate how significant this trend is. The liquid stake supply of Solana has almost doubled within a year, while the real-world asset ecosystem aims to rise from the "single-digit billion dollar" level in 2022 to over 36 billion dollars by 2025.

Although various data panels report total value locked (TVL) figures in the range of 15-19 billion dollars, the overall growth direction remains unchanged. RedStone also indicates that the structure of crypto yields is changing: beyond merely incentive-focused annual percentage returns, increased liquid staking collateral and the presence of tokenized bonds are pointing towards layered risk markets.

The report describes the GENIUS Act regulation in the US as the biggest regulatory opening the sector has seen since Bitcoin's white paper. This regulation is noted to accelerate the integration of cash-like products and fixed-income assets into the blockchain infrastructure. A wide range of stakeholders, including A16z, Coinbase, and BlackRock, provide feedback on this draft legislation, while the Treasury Department continues to gather public opinion on the process. All these developments indicate that the on-chain yield market is rapidly maturing into a new layer of finance.