Altcoins shed $200 billion as Solana's tokenized RWA market hits record $4.8 billion

Altcoins have come under sharper pressure than Bitcoin (BTC), even though Bitcoin remains the main driver of overall crypto market sentiment. In total, altcoins have lost more than $200 billion in market capitalization, indicating that the euphoria surrounding the sector was short-lived.

Excluding Binance's market, more than 70% of altcoins have broken below their 200-day moving average (MA), with that share fast approaching the 80% mark. The 200-day MA is a long-term trend indicator widely tracked by market participants in both traditional and crypto markets, making the breadth of these breakdowns a closely watched gauge of sector-wide weakness. Solana (SOL), for instance, was trading at $89 at press time, while its 200-day MA stood at $97.76.

The broader altcoin market's weakness has been accelerated by macroeconomic uncertainty, particularly after President Trump's Republicans lost control of both chambers of the U.S. Congress. During the week, the Federal Reserve, the European Central Bank and the Bank of England all raised interest rates — a move that discourages borrowing capital for investment in risk-on assets such as altcoins. Both the Nasdaq and the S&P 500 also fell from their recent peaks, extending the weakness into the stock market.

The gap between current altcoin performance and conditions in mid-August points to a shifting market bias. Between August and September, altcoin market capitalization rose by $320 billion; since then, the sector has given back 62.5% of those gains.

Solana's tokenized RWA market approaches $4.8 billion

Despite the steep decline in altcoin market caps, adoption on Solana has been thriving. The market capitalization of tokenized real-world assets (RWAs) on the chain hit a new peak of $4.80 billion. Tokenization refers to representing traditional financial instruments — such as funds, equities, and commodities — as digital tokens on a blockchain, a segment that has drawn attention as a bridge between conventional finance and on-chain markets.

At the time of writing, tokenized funds led the segment with $3.70 billion, followed by tokenized stocks at $1.10 billion and tokenized commodities at $31.90 million. These figures are expected to grow further over the long term. Armani Ferrante, CEO of Backpack (BP), one of the tokenization platforms built on Solana, has stressed opening up the entire global stock market on the Solana mainnet.

Regulation, however, remains a major hurdle, especially in the United States after Republicans lost control of both the House and the Senate.

Will SOL outperform a weak altcoin market?

Solana slid after the midterm election outcome, adding pressure to the token. At press time, SOL was 9.75% away from its 200-day MA — trading below it — a reading indicating that bears were in control of the market. Looking ahead, observable data points include whether the share of altcoins below their 200-day MA crosses the 80% mark, how the U.S. regulatory environment develops following the shift in congressional control, and whether the composition of Solana's RWA market across funds, stocks, and commodities continues to broaden.

Even so, traders are betting that the growing RWA market could help mitigate downside risk, which would position SOL as an outlier while the general altcoin market is weak. A bullish Bitcoin would also be needed for additional confluence.

Final Summary

Altcoins have lost over $200 billion in market cap, surrendering more than 62.5% of the gains recorded between mid-August and September. Solana's RWA market cap, meanwhile, grew to $4.80 billion, led by tokenized funds.

Source: CryptoNewsNet