Solana has seen significant growth in its tokenized stock market, with market capitalization surpassing $100 million in less than a month since the launch on June 30. According to data from rwa.xyz, the Solana tokenized stock market is now valued at nearly $102 million as of July 22, marking a 242% increase from its initial size of $29.8 million. The market is predominantly driven by xStocks, issued by Backed Finance.
With Solana now accounting for 20.4% of the tokenized stock market, it has outpaced Ethereum and its layer-2 blockchains, including Arbitrum, Polygon, and Base, which collectively hold $11.8 million in tokenized stocks. The largest tokenized stock on Solana is TSLAx, representing Tesla’s shares, with a market capitalization of $13.6 million and 11,073 holders. Additionally, tokenized S&P 500 stocks such as SPYx and CRCLx have market capitalizations in the tens of millions.
The official xStocks profile on X has reported that the tokens have exceeded $300 million in on-chain trading volume. However, despite the impressive growth of tokenized assets on Solana, investors are not yet interacting with DeFi protocols that could make these assets more composable.
Kamino, a Solana-based money market, supports eight xStocks tokens as collateral, including TSLAx, SPYx, Nvidia’s NVDAx, and others. While the collective market cap of these tokens approaches $50 million, only a small portion has been utilized as collateral so far. Liquidity providing on Raydium’s pools also shows a similar trend, with a limited amount of tokenized stocks being deposited.
The low usage of tokenized stocks on DeFi applications is primarily due to money flowing from crypto to traditional products, rather than the other way around. Michael Cahill, CEO and co-founder of Douro Labs, noted that traditional market holders entering the crypto space are not yet comfortable with utilizing DeFi composability. However, he sees potential for growth in the future, especially with the introduction of more user-friendly interfaces for on-chain products.
In conclusion, the tokenized stock market on Solana has experienced rapid growth, but there is still untapped potential for further integration with DeFi protocols. As traditional market participants become more comfortable with blockchain technology, we may see a significant increase in the utilization of tokenized assets in the DeFi space.