RWA Overtakes DeFi as the Top Sector for Web3 Founders

A Proof of Talk report shows that 29% of Web3 startups are betting on tokenized assets, while DeFi has slipped to 23%. Investors are also leaning more toward RWA and equity than token-only funding.

Key Takeaways

• Real-world assets and tokenization are the leading sector for Web3 founders in 2026, overtaking DeFi.
• In the report, 29% of applications chose RWA and tokenization, compared with 23% for DeFi.
• Among the funds surveyed, 92% prioritized RWA and tokenization, while Web3 startups are more often looking for equity financing.

Real-world assets (RWA) and tokenization are now the top focus for Web3 founders in 2026, moving ahead of DeFi. That’s the takeaway from a new Proof of Talk report built on more than 200 startup applications for Proof of Pitch 2026 and a survey of 13 active Web3 venture funds. The data suggests that both founders and investors are gravitating toward products that look a lot more like traditional finance.

RWA Is Drawing the Most Attention

The report says 29% of applications centered on RWA and tokenization. DeFi followed at 23%, while decentralized AI accounted for 11%. The researchers describe tokenized assets as the clearest trend in the dataset.

That marks a notable change from earlier crypto cycles, when DeFi was the main draw for many founders. Today, more teams appear to be focused on moving financial assets, credit markets, and payments onchain. It reflects a broader shift in crypto, where projects are increasingly built around practical use cases instead of pure speculation.

The investor side tells a similar story. Of the 13 funds surveyed, 12, or 92%, said RWA and tokenization were a priority. DeFi and stablecoins each came in at 77%. Since the sample is small, the report is better read as a snapshot of market direction than a full picture of sector allocation.

Funding Is Getting More Traditional

The report also shows that Web3 startups are moving away from token-only fundraising. Only 5% of applicants are seeking token-only funding, while 83% want some form of equity exposure. Investors are following a similar pattern, with nearly half preferring a mix of equity and tokens and just 9% backing token-only deals.

That tilt toward equity makes sense in a market where more projects are already bringing in revenue and relying less on a pure token model. The report says roughly 44% of the more than 200 applicants already generate revenue, and 7% are profitable. Even so, 89% of the group is still at the pre-seed or seed stage.

What This Says About Web3

For European crypto readers, the bigger picture is that Web3 is becoming more closely tied to existing financial infrastructure. Tokenizing real-world assets could help connect traditional markets with blockchain, but success in that area still depends heavily on execution, regulation, and product design. The rise of RWA may also be a sign of a more mature crypto market, where capital is flowing more often into useful applications than into standalone token narratives. Other market models are moving in a similar direction, including prediction markets, which are increasingly connecting blockchain infrastructure with traditional use cases.