$133M Tokenized Commodities Flood DeFi via Aave and Uniswap

Tokenized commodities in decentralized finance (DeFi) have reached $133.3 million in deposits, marking a significant shift in how real-world assets are being used.

Aave dominates this market with a 51.3% share of these deposits, followed by Uniswap at 34.7%. Together, they account for 86% of all tokenized commodity activity in DeFi.

The primary use cases for tokenized commodities are lending and trading, with Aave's dominance coming from its role as a lending protocol, where users deposit tokens like XAUT (gold-backed) to borrow stablecoins. Uniswap's share comes from liquidity provision, where users park their commodity tokens in trading pools to earn fees.

The growth of tokenized commodities is being driven by gold-backed tokens, with tokenized gold reaching a multi-billion dollar market size.