Fragmentation drains up to $1.3B a year from tokenized assets: Report

A report by RWA.io highlights that fragmentation across blockchain networks is costing the tokenized asset market up to $1.3 billion annually through value drag. This occurs because walled-off blockchains trap liquidity, causing identical or economically equivalent assets to trade at price spreads of 1% to 3% across different chains. Cross-chain arbitrage is often unviable due to high costs, fees, and operational risks, meaning these inefficiencies cannot self-correct. RWA.io estimates that the friction costs associated with moving capital between non-interoperable chains result in an average loss of about 3.5% per reallocation. The report warns that if these fragmentation patterns persist as the tokenized real-world asset market potentially reaches $16 trillion to $30 trillion by 2030, the annual value drag could escalate to $30 billion to $75 billion, severely constraining long-term growth.

(Source：Cointelegraph)