The security token industry is still firing on all cylinders, despite some intriguing market developments. As the STO market cap has now surpassed $1.12 billion, it becomes apparent demand for these assets is still rising. Even so, various tokens note a 24-hour price decline, making speculators excited about the future.
Security Token Market Cap Keeps Climbing
It is intriguing to see how investors respond to the concept of security tokens. Contrary to stocks or crypto assets, these regulated offerings are often less volatile in nature. As every STO represents equity or a stake in a company or physical location through other means, they often tend to retain their value rather well. It is a seemingly lower-risk investment option that bridges the real world with digital technology.
Several STOs have proven successful over the past year or so. But, more importantly, new projects have come to market, lending more credibility to the concept of tokenizing securities. Although these projects have significantly lower market caps than crypto assets or even stocks, there is still tremendous potential for STOs moving forward.
Exodus, the most recent project introducing a security token, has noted some volatility since its launch. As EXOD trades on the tZERO platform, it saw an initial surge to $75 and above. Unfortunately, that momentum wasn’t sustainable, and EXOD currently trades at $20.75. It is difficult to determine where the momentum will lead, although the price appears to stabilize slightly despite a 13% loss for the day.
Other security tokens noting steep losses today include Realio Network LTD – -7.81% – 22x fund – -40% – and somewhat surprisingly, Overstock’s OSTKO – -2%. Similar to other financial markets, security tokens will be somewhat volatile from time to time. That is only normal, as these assets are influenced by the company performing well, overall demand and exposure, and volatility, to some degree.
The $100 Million Club Shrinks Again
There is another remarkable development for security tokens. Despite the combined market cap surpassing $1.12 billion, the number of individual projects valued at over $100 million has decreased. Not that long ago, there were five for the very first time. Today, that number has been reduced to three and depending on TZROP’s performance; it may decrease to two shortly.
The bigger question is whether the overall trading volume will pick up. Most of these assets note under $100,000 in daily trading volume, which is far less than one would like to see at this point. Even so, the industry is still in a perfect place and on its way to $1.5 billion in combined market cap. As more projects explore this option of digitizing securities, interesting things are on the horizon.
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