Redstone Report Reveals Crypto's $1 Trillion Yield Gap, Points to LSTs and RWAs for Growth

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Derived from Bitcoin.com, a recent Redstone study found that only 8% to 11% of the $3.2 trillion cryptocurrency market generates yield, compared to 55% to 65% in traditional finance. Experts argue this gap hinders institutional adoption due to the lack of predictable, auditable yield. Max Sandy of Ramp Network highlighted the need for resilient infrastructure, transparency, and improved usability to close the gap. He identified liquid staking derivatives (LSTs) and tokenized real-world assets (RWAs) as key areas for future yield growth. Phil Wirtjes of Enclave Global noted a shift in institutional priorities toward yield-driven strategies with integrity and confidentiality. Sandy also emphasized the importance of regulatory clarity for scaling tokenized RWAs.

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