Centrifuge's CFG token fell more than 14% to $0.1379 as of 20:00 UTC on Aug. 19, extending a double-digit weekly decline. RWA activity on the Polkadot-based protocol contracted sharply, with asset transfer volume dropping 10% and net USD outflows exceeding $2.25 million.
Centrifuge's CFG token fell more than 14% to $0.1379 as of 20:00 UTC on Aug. 19, extending a double-digit weekly decline. The drop follows a sharp contraction in real-world asset (RWA) activity on the Polkadot-based protocol, with asset transfer volume and count falling sharply and net USD outflows exceeding $2.25 million.
According to Token Terminal data, Centrifuge's monthly asset transfer volume dropped 10%, falling from a peak of $11.67 million to $281,000 this week. Monthly asset transfer count lost 58% of its share since the start of August, plummeting from 6,700 to 2,200 transactions — a 67% decline pointing to sharply reduced ecosystem usage in the RWA sector.
The Centrifuge ecosystem also saw net USD outflows exceeding $2.25 million, per DefiLlama. Total value locked held flat at approximately $1.709 billion after falling from above $2 billion in April, when the RWA narrative was at its peak. The protocol generated roughly $200,900 in fees over the past 24 hours, reflecting low on-chain activity.
CFG's market structure has been bearish since mid-July, with the token falling inside a wedge pattern before breaking below its lower trendline support. Momentum indicators reinforce the bearish control: Bull Bear Power bars read -0.0243, while Chaikin Money Flow crashed to -0.22, indicating capital flight from the token.
The altcoin could continue dipping toward its all-time low of $0.06712 if the current trajectory holds. However, CFG sits closer to $0.1257, a demand zone that previously pushed the token to a peak of $0.3497. That level could mark the start of a recovery if buyers return.
Centrifuge tokenizes real-world assets such as invoices, mortgages, and consumer credit on-chain, allowing institutional investors to access these markets through DeFi. The sharper decline in CFG compared to the broader altcoin market points to coin-specific weakness in its RWA niche, rather than a purely macro-driven selloff. Daily trading volume increased during the selloff, supporting the selling pressure seen across multiple altcoins.
The broader RWA sector faces intensifying competition as protocols like Ondo Finance and tokenized treasury products on Ethereum and other chains vie for the same institutional capital. The decline in Centrifuge's on-chain activity suggests the RWA narrative that drove TVL above $2 billion in April has lost momentum, raising questions about whether the sector can sustain its growth trajectory. With Bitcoin dominance near 57%, capital rotation into major assets continues to pressure smaller altcoins like CFG, and a sustained recovery in RWA demand may require a broader market turnaround.
This article is for informational purposes only and does not constitute investment advice.
