Blockchain liquidity fragmentation costs tokenized market up to $1.3B annually

Liquidity fragmentation across blockchain networks is causing significant economic losses in the tokenized asset market, with such capital inefficiencies leading to an annual market value decline of up to $1.3 billion, according to a recent report from real-world asset (RWA) data provider RWA.io, as reported by Cointelegraph. The report stated that due to this fragmentation, the RWA market tends to operate more like a series of disconnected markets than an integrated financial system. It is common for the same asset to trade at different prices on various blockchains, and moving capital between networks remains costly and complex. The report argued that these inefficiencies hinder the market's ability to self-correct through arbitrage, a mechanism that promotes efficient price discovery, and identified liquidity fragmentation as the biggest obstacle to the RWA market realizing its potential multi-trillion-dollar scale.