Real-world assets (RWA) and tokenization have overtaken decentralized finance (DeFi) as the primary sector for Web3 founders, according to a new Proof of Talk report.

The “The State of Web3 Capital 2026” report draws on more than 200 startup applications to Proof of Pitch 2026, as well as a survey of 13 active Web3 venture funds. Together, they show founder and investor demand tilting toward RWA products over DeFi.

RWA and Tokenization Lead Both Founders and Investors

RWA and tokenization were the primary focus for 29% of the applicants. DeFi followed at 23%, with decentralized AI at 11%. The report calls the rise of tokenized assets the clearest signal in its dataset.

This marks a reversal from prior cycles, when DeFi dominated founder attention. Founders now concentrate on bringing financial assets, credit markets, and payments on-chain.

Investors echoed the trend. RWA and tokenization were the most selected sectors, chosen by 12 of the 13 surveyed funds at 92%. 

DeFi and stablecoins each followed at 77%. The investor sample is small, so these figures indicate direction rather than market-wide weighting.

“Tokenization is no longer theoretical. Stablecoins proved it at a record $322 billion in circulation, and RWAs followed,” Joe Bruzzesi, General Partner at Raptor Digital, said.

Equity and Revenue Replace Token-First Models

The report also noted a shift in fundraising structures. Just 5% of applicants seek token-only financing, while 83% now want equity exposure in some form. 

Investors showed a similar preference. Nearly half favored a combined equity-and-token structure, while only 9% backed token-only deals. BeInCrypto also reported earlier this month that crypto public token sales were on track for their weakest quarter in five years.

Meanwhile, the report points to an ecosystem more mature than in previous crypto cycles. Around 44% of the more than 200 applicants already generate revenue, and 7% report profitability. Most still raise at the pre-seed or seed stage, where 89% of the cohort sits.

Overall, the findings point to founders and investors aligning on priorities, with the split between what gets built and what gets funded starting to close.

Source: BeInCrypto