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When Token Transfers Do Not Mean Liquidity in Tokenized Real-World Assets

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  • Emre Atay Tumer
  • Rischan Mafrur

Abstract

On-chain transfer volume is often used to describe activity in tokenized real-world assets (RWAs), although recorded transfers may reflect very different economic functions, including token creation, destruction, issuer-related operations, and movements between other addresses. Ownership measures face a similar problem because a large address balance may belong to a pool or intermediary that represents multiple investors. We address these two measurement problems by decomposing transfer activity and making ownership coverage explicit. Transfer turnover is calculated before and after observable event categories are separated, using the same asset, observation window, and supply denominator. For ownership, we compare concentration measured against total supply with concentration among the addresses that remain after identified intermediaries are excluded. Using Ethereum-based tokenized funds from December 2025 to August 2026, we find that transfer classification can materially change measured turnover. We also show that removing an intermediary can lower concentration when measured against total supply while concentration among the remaining addresses increases. Transfer activity and address concentration need to be interpreted with their underlying transaction functions and ownership coverage in mind. These measures provide evidence about liquidity-related activity, but they do not directly measure market liquidity. The code and data used in the analysis are available at https://github.com/atytmr07/rwa-liquidity.

Suggested Citation

  • Emre Atay Tumer & Rischan Mafrur, 2026. "When Token Transfers Do Not Mean Liquidity in Tokenized Real-World Assets," Papers 2610.05873, arXiv.org.
  • Handle: RePEc:arx:papers:2610.05873
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    References listed on IDEAS

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