Recent developments in the blockchain and digital finance space suggest a notable shift in market dynamics, with tokenized assets gaining increasing traction over decentralized finance (DeFi) protocols. The trend was highlighted in July 2025, when non-fungible tokens (NFTs) saw their daily active wallets surpass those of DeFi for the first time, reaching 3.85 million users [1]. This growth in NFT activity reflects a broader investor appetite for digital collectibles and tokenized assets, which are increasingly perceived as both speculative and utility-driven.

Niklas Kunkel, founder of Chronicle and a former executive at MakerDAO, has suggested that tokenized assets could eclipse DeFi in market importance, as reported in a CoinDesk briefing in August 2025 [5]. His comments indicate a growing institutional interest in the tokenization of real-world assets, potentially altering the trajectory of DeFi markets.

Tokenized assets, including real-world assets (RWAs), have gained attention for their efficiency and transparency. According to industry analysis, tokenization of RWAs is seen as superior to traditional securitization methods, offering faster settlement speeds and improved liquidity [5]. This has contributed to increased investor interest, with tokenized stocks becoming a focal point of capital inflows [9].

Despite this growing interest in tokenized assets, DeFi itself remained a significant force in the market. DeFi applications hit a record $270 billion in total value locked (TVL) during the period, driven in part by innovation in NFT markets and tokenized asset offerings [3]. However, the surge in NFT activity, which reached $530 million in July trades, indicates that user engagement is increasingly shifting toward tokenized assets over traditional DeFi platforms [10].

The broader crypto market also witnessed a positive trend, with the sector attracting $2.67 billion in funding during July 2025, a 6% increase from the previous month [6]. This capital infusion underscores the growing confidence among investors in the blockchain ecosystem, especially as Ethereum saw a significant price rally, partly driven by institutional interest and record U.S. spot ETF inflows [8].

The rise of tokenized assets is not only a function of user behavior but also of underlying market confidence. Analysts point to stronger network fundamentals and whale accumulation patterns as contributing factors to the upward trend in tokenized asset markets [4]. These indicators, along with growing capital inflows, signal that tokenized assets are becoming a more dominant force in the broader crypto landscape.

As the market continues to evolve, it is clear that tokenized assets are gaining momentum over DeFi in terms of user engagement and capital deployment. This shift may signal a long-term trend in which tokenization plays an increasingly central role in financial innovation and investor strategies.

Sources:

[1] Ethereum News Today – NFTs Overtake DeFi Daily Active Wallets (https://www.ainvest.com/news/ethereum-news-today-nfts-overtake-defi-daily-active-wallets-time-2508/) [3] DeFi Applications Hit Record $270 Billion TVL (https://quasa.io/media/defi-applications-hit-record-270-billion-tvl-driven-by-rwa-growth-says-dappradar) [4] Chainlink Surges 15% as Whale Accumulation and Network Fundamentals Improve (https://www.ainvest.com/news/chainlink-surges-15-whale-accumulation-network-fundamentals-improve-2508/) [5] Niklas Kunkel, founder of Chronicle, on tokenized assets (https://coinmarketcap.com/community/articles/689942e2ca3d2c54295d4d43/) [6] Crypto Attracts $2.67B in Funding During July (https://m.fastbull.com/news-detail/crypto-attracts-267b-in-funding-during-july-bolstered-4338997_0) [8] Cryptocurrency Market Capitalization Grows 13.3% Following Bitcoin Surge (https://yellow.com/news/cryptocurrency-market-capitalization-grows-133-following-bitcoin-surge-binance-report) [9] RWA Tokenization vs Traditional Securitization (https://blockchain.news/flashnews/rwa-tokenization-vs-traditional-securitization-why-on-chain-wins-for-liquidity-transparency-and-settlement-speed-on-ethereum-eth-with-usdc) [10] NFTs Stage Comeback with $530M in July Trades (https://www.coinmarketcal.com/tr/news/nfts-stage-comeback-with-530m-in-july-trades-flipping-defi-user-activity)