XDC Network is currently navigating a dynamic period, showcasing notable resilience in its market value despite facing significant challenges in user engagement. The network is strategically repositioning itself, making substantial progress in the Real-World Asset (RWA) tokenization sector and attracting increasing institutional interest.
Market Dynamics and On-Chain Realities
While the XDC token saw a minor daily dip, its weekly performance notably outperformed Bitcoin, hinting at underlying strength amidst a generally bearish market. This comes amidst concerning on-chain metrics, with daily active users plummeting by 84% since 2021 to just 45k, indicating low on-chain utility despite a respectable $706 million market cap. CryptoQuant data also reveals a cooling phase in spot trading volume. However, there are signs of easing selling pressure, as the spot taker cumulative volume delta has shifted to neutral after months of sell-dominance, though a definitive price bottom for XDC remains elusive.
Pioneering Real-World Asset Tokenization
Countering fears of low active users, XDC Network is building a robust narrative around Real-World Asset (RWA) tokenization, solidifying its enterprise-grade utility. A successful hardfork on January 30th significantly strengthened its core infrastructure for RWA capabilities. Key partnerships further underscore this focus: a collaboration with Brazilian fintech Liqi Digital Assets has already tokenized $100 million in RWAs, with an ambitious target of $500 million by 2026. Additionally, a partnership with Brazil’s VERT Capital aims to tokenize $1 billion in debt and receivables, reinforcing XDC's commitment to institutional adoption over retail-centric operations. These developments firmly establish XDC as a prominent player in bridging traditional finance with blockchain technology, effectively diluting "ghost chain" concerns.
