Real-World Assets Delivering Stable Yields Amid Market Shakedown

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Both crypto and stock markets are currently experiencing outsized volatility as a confluence of slumping trade, scorching inflation, and the probability of higher interest rates dampen valuations.

The crypto market, just shy of reaching an aggregate USD 2 trillion market capitalization, shrunk to less than USD 1.3 trillion in just a matter of days. Leading cryptocurrencies like Bitcoin, Ethereum, Solana, Cardano, Binance Coin, and several others have shed nearly half of their values. 

Terra’s algorithmic stablecoin UST lost its dollar peg twice this month, dragging the value of its sister token LUNA to extreme lows. At the time of writing, LUNA, which was sitting among the top 10 cryptocurrencies by market capitalization earlier in May, has lost almost 98% of its value. The project’s fully diluted market cap is down by 99.97%, pushing it to the 225th rank in terms of market capitalization.

And the impact isn’t just limited to cryptocurrencies!

Other associated segments, such as decentralized finance (DeFi), are also feeling the pinch of this sudden market meltdown. According to the latest data from DefiLlama, the total value locked in DeFi currently sits at USD 112.46 billion - a significant drop compared to the USD 195.33 billion at the start of May.

The traditional finance (TradFi) market has fared no better. There has been a noticeable decline across both the Dow Jones Industrial Average and the NASDAQ Composite this month. Meanwhile, the S&P 500 tumbled below the 4000 level for the first time in over a year.

There are several reasons behind the current stock market scenario,