Tokenized Stocks See 71% of Trading Volume Outside Traditional Market Hours

Tokenized stocks tied to U.S. equities saw a staggering 71% of their trading volume occur outside regular U.S. market hours, according to a recent report from Kaiko. This phenomenon was observed on the Uniswap platform, where nearly half of the trading took place when U.S. exchanges were fully closed. The weekend price moves in tokenized stocks also showed a surprising correlation with share-price moves after the U.S. market opened on Monday.

In 20 out of 25 large price swings analyzed by Kaiko, the direction of weekend moves in tokenized stocks and share-price moves shortly after Monday's open were the same. This suggests that tokenized stocks may be reflecting the underlying market sentiment before the traditional market even opens. Meanwhile, the trading volume on Robinhood Chain has surpassed that of most other blockchain networks.

While this trend may indicate a growing interest in tokenized stocks, it also raises concerns about market manipulation and the lack of regulation in the space. As the popularity of tokenized stocks continues to grow, it will be essential for regulators to address these issues and ensure that the market remains fair and transparent.