Tokenized RWA Projects Outperform Traditional DeFi as Real Yield Gains Traction

Investors seeking sustainable returns are increasingly turning to tokenized real-world asset (RWA) projects, which are now outperforming traditional decentralized finance (DeFi) offerings. The shift highlights a growing preference for tangible yield in an ecosystem often characterized by speculative volatility.

Portfolio diversification remains paramount, yet the integration of DeFi assets introduces new complexities. Unlike conventional investments, DeFi returns fluctuate unpredictably, demanding more sophisticated analysis. Return on investment (ROI)—a straightforward metric comparing current value to acquisition cost—becomes nebulous when applied to dynamic crypto assets.

The challenge lies in calculation. Traditional ROI formulas falter with DeFi's variable rewards structures, leaving investors to navigate opaque yield mechanisms. This opacity may accelerate the migration toward RWA projects, where yields often correlate with verifiable off-chain revenue streams.