RWA and Tokenization Dethrone DeFi as the Dominant Web3 Founder Sector in 2026
A newly released industry report has confirmed a significant power shift within the Web3 ecosystem: real-world assets (RWA) and tokenization have officially surpassed decentralized finance (DeFi) as the leading sector among Web3 founders heading into 2026.
The findings come from "The State of Web3 Capital 2026," a comprehensive study published by Proof of Talk. The report aggregates data from over 200 startup applications submitted to the Proof of Pitch 2026 program, supplemented by a survey conducted across 13 actively operating Web3 venture capital funds. Taken together, the data paints a clear picture of where both builders and backers are directing their energy.
RWA and tokenization claimed the top spot as the primary focus area for 29% of all applicants reviewed. DeFi came in second at 23%, while decentralized AI projects accounted for 11% of the cohort. The report describes the surge in tokenized asset projects as the single clearest trend visible in its entire dataset.
This represents a notable reversal from earlier crypto market cycles, when DeFi commanded the lion's share of founder attention. Today's builders appear more focused on bridging traditional financial instruments — including credit markets, payment systems, and financial assets — with on-chain infrastructure.
The shift is not limited to the founder side. When surveyed, 12 out of 13 venture funds — equivalent to 92% — identified RWA and tokenization as sectors of active interest. DeFi and stablecoins each followed at 77%. While the investor sample size remains limited, the directional signal is unmistakable.
"Tokenization is no longer theoretical. Stablecoins proved it at a record $322 billion in circulation, and RWAs followed," said Joe Bruzzesi, General Partner at Raptor Digital, commenting on the trend.
Beyond sector preferences, the report highlights a fundamental change in how Web3 startups approach fundraising. Token-only financing, once a dominant model in crypto, now appeals to just 5% of applicants. Meanwhile, 83% of founders are seeking some form of equity exposure. Investors are largely aligned with this preference — nearly half favor hybrid structures combining both equity and token components, while only 9% remain committed to token-only deal structures.
This aligns with broader market signals. Earlier this month, separate reporting indicated that public crypto token sales were on pace for their weakest quarterly performance in five years, reinforcing the trend away from token-centric fundraising models.
The maturity of the current Web3 startup cohort is also worth noting. Approximately 44% of the more than 200 applicants already report generating revenue, and 7% have reached profitability — figures that stand in stark contrast to the speculative, pre-revenue landscape that characterized earlier crypto boom cycles. The majority of these companies, around 89%, are still raising at the pre-seed or seed stage.
Overall, the report suggests that the gap between what founders are building and what investors are willing to fund is narrowing. With both sides increasingly converging on RWA-focused priorities and equity-aligned structures, the Web3 capital landscape of 2026 looks markedly different from its predecessors.
