Key Takeaways
Tokenized stocks exploded in Q2, and the trend has extended into Q3. Tesla and SPY dominated the on-chain market interest.
Tokenized stocks have seen an explosive 220% growth since June, hitting a market cap of $370M. This, according to the latest monthly report by Binance Research.
On-chain stocks have democratized access to the U.S equities market. Especially after the latest episode of regulatory clarity from the SEC as it pushes its financial capital markets on-chain via ‘Project Crypto.’
Active users soared by 56x from 1.6k to over 90k, with Binance Research analysts noting that it mirrored the DeFi boom in 2021.
“Active on-chain addresses surged from 1.6K to 90K, reflecting strong investor interest reminiscent of the early DeFi boom.”
Tesla, SPY lead tokenized stocks
In particular, xStocks by Backed Finance has been the most popular tokenized stocks provider, especially for Europe and markets outside the United States.
According to Dune Analytics data, xStocks’ total trading volume crossed $2 billion for the first time.
This further highlighted the investor interest. Tesla had the highest in assets under management, followed by the S&P 500 Index (SPY).
Source: Dune Analytics
In terms of holders, Tesla had 11k users, followed by SPY and Nvidia. Circle and Apple also made it to the top five on-chain stocks with the highest holders.
While xStocks debuted on Solana [SOL] via Kraken, ByBit, Jupiter and other platforms, the overall tokenized asset settlement is still being dominated by Ethereum [ETH].
In fact, at the time of writing, the Ethereum chain controlled $4.6 billion out of the $5.76 billion total market cap of the tokenized asset market.
Source: The Block
According to Syncracy Capital’s Ryan Watkins and his projections, the tokenization boom will drive demand and value for ETH and SOL. In fact, Binance Research analysts added that,
“If just 1% of global stocks were tokenized, the market could exceed US$1.3T, driving significant growth in on-chain assets and DeFi infrastructure toward mainstream adoption.”
In the meantime, however, capital inflows into Solana have declined faster than Ethereum, indicating rotation to ETH.
SOL/ETH dropped to a yearly low too, giving ETH a major lead into the H2 2025, thanks to the expected stablecoin and tokenization boom. Whether SOL will catch up remains to be seen.
Source: Glassnode
