Centrifuge Price Plummets Amid RWA Niche Decline

Centrifuge's (CFG) price has been plummeting in recent days, dropping by over 14% in the past 24 hours. This decline is part of a larger trend, as the altcoin has seen a double-digit decrease in market cap over the past week.

The issue seems to be centered around its real-world asset (RWA) niche, which has been experiencing negative sentiment. According to data from Token Terminal, Centrifuge's RWA activity has declined on multiple fronts. The Monthly Asset Transfer Volume on the chain fell by 10%, with a significant drop from $11.67 million to just $281K in a single week.

This decline is not limited to just one metric, as the Monthly Asset Transfer Count lost more than 58% of its share since August. This represents a 67% loss and indicates very low usage of the ecosystem in the RWA sector.

The Centrifuge ecosystem has also seen net USD outflows of over $2.25 million, according to DefiLlama data. Furthermore, the Total Value Locked (TVL) was flat at around $1.709 billion after a sharp drop from its highs attained when the RWA narrative was thriving.

The market structure of CFG has been bearish since mid-July, with the altcoin falling inside a wedge pattern and breaking below the lower trendline support. Momentum indicators such as Bull Bear Power (BBP) and Chaikin Money Flow (CMF) also suggest capital flight.