Centrifuge crypto falls 14% as RWA demand slumps – Can CFG rebound?

Centrifuge [$CFG] declined more than 14% in the past 24 hours at press time, extending the double-digit decline in market cap over the past week. The daily trading volume increased, supporting the selling pressure experienced across multiple altcoins.

However, the sharper decline in $CFG points to a coin-specific weakness with its real-world asset (RWA) niche.

Centrifuge’s RWA sees negative sentiment

As per data from Token Terminal, Centrifuge’s RWA activity declined on multiple fronts.

For instance, the Monthly Asset Transfer Volume on the chain fell by 10%. This week alone, the metric has decreased from a peak of $11.67 million to $281K, indicating very low usage of the ecosystem in the RWA sector.

Additionally, the Monthly Asset Transfer Count lost more than 58% of its share. Since the start of August, this count has plummeted from 6.7K to 2.2K, representing a 67% loss.

Apart from its RWA niche’s underperformance, $CFG faced a broader, weaker altcoin market. To be specific, the Centrifuge ecosystem saw net USD outflows of more than $2.25 million.

Moreover, the Total Value Locked (TVL) was flat at around $1.709 billion after a sharp drop from its highs attained when the RWA narrative was thriving. The TVL of $CFG in April was above the $2 billion mark.