Crosschain Inefficiencies Create Price Gaps and Capital Losses as Tokenization Scales
The rapid expansion of tokenized real-world assets (RWAs) is being undermined by a growing structural problem: blockchain fragmentation. New research estimates that inefficiencies caused by disconnected blockchain networks are already draining between $600 million and $1.3 billion per year from the tokenized asset market, raising concerns about scalability and long-term efficiency.
As tokenized markets expand across multiple blockchains, assets that are economically identical are increasingly trading at different prices on different networks. Research indicates that price spreads of 1% to 3% are common for the same underlying asset issued across major chains.
In efficient markets, arbitrage would normally close these gaps. However, crosschain capital movement remains costly and complex, preventing traders from correcting mispricing. Fees, delays, technical risks, and operational friction often outweigh potential profits, allowing discrepancies to persist.
Beyond price divergence, moving funds between non-interoperable chains creates additional losses. Studies estimate that capital relocation costs range from 2% to 5% per transaction, driven by gas fees, bridge costs, slippage, exchange fees, and timing risk. On average, about 3.5% of value is lost each time capital is reallocated across chains.
When modeled at scale, these frictions translate into hundreds of millions of dollars in annual value erosion. If current patterns continue, fragmentation could become one of the most significant constraints on market efficiency.
Projections suggest tokenized assets could reach $16 trillion to $30 trillion by 2030. If today’s inefficiencies persist, annual value loss could rise to $30 billion to $75 billion, turning infrastructure limitations into a systemic risk.
Even with these challenges, adoption continues to grow as both digital-native platforms and traditional financial institutions expand tokenized equity and asset offerings. However, resolving interoperability and liquidity fragmentation may be critical to unlocking the sector’s full potential.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.