Crypto Yield Gap Narrowing as LSTs and RWAs Offer New Passive Income Opportunities

Despite still trailing behind traditional finance (TradFi), cryptocurrency-based yield products are showing signs of closing the gap, particularly with the emergence of liquid staking tokens (LSTs) and real-world assets (RWAs). A new report co-authored by RedStone Oracles, Gauntlet, Stablewatch, and the Tokenized Asset Coalition reveals this trend, highlighting their role in boosting crypto’s passive income potential. The report shows that only 8% to 11% of cryptocurrencies offer passive yield models, compared to a significant 55% to 65% offered by TradFi assets. This gap presents a massive opportunity for the industry.