@armstrongellis
Growing RWA activity attracts institutional-grade capital and can reallocate some liquidity from pure DeFi yield pools into cash-flow-backed instruments. This shift can diversify capital sources and reduce speculative leverage in DeFi, but RWA demand may be additive if it taps new investor cohorts. Net impact depends on relative yields, regulatory comfort, and integration ease between TradFi and on-chain markets.
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