Potential Impacts of Mantra’s Collapse on RWA Market Dynamics and the Outlook for ONDO, RSR, and TOKEN in May

• The collapse of Mantra heightened scrutiny on decentralized Real World Assets (RWAs), accelerating institutional demand for regulated tokenization platforms.

• Ondo, Reserve Rights, and TokenFi are drawing investor interest, with strong price action but mixed technical signals in early May.

• Stablecoins and tokenized Treasuries lead RWA adoption, acting as bridges between traditional finance and blockchain infrastructure.

Real-World Assets (RWA) are gaining prominence in the crypto space, with institutional demand soaring and regulatory scrutiny intensifying following recent market events.

Stablecoins and Treasuries Propel RWA Adoption

The collapse of Mantra has triggered a wave of reflection and caution across the Real World Asset (RWA) sector. As Andrei Grachev, Managing Partner of DWF Labs, puts it:

“The Mantra collapse is really a pivotal moment for the RWA sector. It has exposed some serious vulnerabilities in how these permissionless tokenization platforms operate. I think we’re going to see investors getting much more cautious and selective about where they put their money now. Institutional players will probably start demanding much higher standards of due diligence, and regulators might step in with more scrutiny too.”

This event has clearly shaken confidence in the structure of some decentralized RWA models, pushing institutional and retail participants toward more regulated, vetted alternatives.

At the same time, the debate around RWA tokens’ potential to decouple from broader crypto market volatility is gaining momentum.

In response to Binance Research’s observation that RWA tokens have shown more stability than Bitcoin during tariff events, Edwin Mata, Co-founder & CEO of Brickken, said:

“True RWA tokens are backed by real-world value and governed by legal frameworks that enforce rights, obligations, and cash flows. In that sense, they behave more like traditional securities and can, over time, become more resilient to macro-level crypto volatility, especially during periods of market stress, regulatory shifts, or geopolitical shocks like tariffs.”

Shahaf Bar Geffen, CEO and Founder of COTI, reinforced this emerging divergence by stating:

“We’re already witnessing the early stages of that decoupling. RWA tokens are anchored to tangible assets—real estate, commodities, invoices—which inherently provide a stability layer absent in purely speculative cryptocurrencies. The potential for RWAs to hedge against macroeconomic volatility, such as tariffs or inflationary pressures, is significant.”

The macroeconomic case is strengthening, but the technological and institutional backing behind RWAs is also evolving quickly. Kadan Stadelmann, Chief Technology Officer at Komodo Platform, believes institutional adoption will be a decisive factor:

“The adoption by mainstream financial institutions will separate RWAs from the rest of the crypto index. No other crypto product will be as extensively adopted by mainstream finance as RWAs, other than stablecoins, which I would argue are a type of RWA.”

Here are the top 3 RWA coins to watch in May.

Ondo (ONDO)

ONDO has climbed nearly 14% over the past 30 days, recently breaking above the $1 mark for the first time since March 6. This move has brought renewed attention to the token, as its market cap approaches the $3 billion threshold again.

However, this upward price action comes amid a broader contraction in the space. According to data from rwa.xyz, total RWA on-chain value currently sits at $16.6 billion, representing a 16.92% decline over the past 30 days.

Despite ONDO’s short-term strength, its technical indicators are flashing caution. A death cross has recently formed on its EMA lines—a pattern often associated with bearish momentum.

The first key support is at $0.866. If that level breaks, ONDO could decline to $0.819, with deeper support at $0.73 and $0.663 if the downtrend accelerates.

On the upside, if sentiment reverses and ONDO manages to break above the $1.04 resistance, a push toward $1.20 could follow, opening the door for a stronger recovery.

Reserve Rights (RSR)

Reserve Rights is up nearly 41% over the past 30 days, riding a wave of renewed interest following its Coinbase listing and lingering associations with incoming SEC Chair Paul Atkins.

Despite Atkins having no active ties to the project today, his early advisory role has fueled trader speculation about potential regulatory tailwinds.

This narrative, combined with Binance’s top traders heavily going long, has positioned RSR as one of the more politically charged tokens in the current market.

The listing alone sparked a 9% intraday jump, helping bring RSR back into the spotlight after a long quiet phase post-2021 peak.

Technically, RSR is approaching a critical decision point. The token recently attempted to break the $0.0096 resistance level twice and failed, signaling the importance of that threshold.

A successful breakout could open the door to $0.011, and potentially $0.0137 if momentum builds. However, failure to hold current levels could trigger a correction toward $0.0084, with deeper support at $0.0071 and $0.0057.

TokenFi (TOKEN)

Real-world asset (RWA) platform TokenFi (TOKEN) has surged nearly 40% over the past seven days, pushing its market cap back to the $20 million mark.

The sharp rise comes despite a notable drop in trading activity, with 24-hour volume falling over 59% to $8.13 million.

The divergence between price appreciation and declining volume raises questions about the rally’s sustainability, but for now, TOKEN is regaining attention as a small-cap RWA narrative play in the altcoin market.

From a technical standpoint, TOKEN is approaching key resistance levels. If the bullish momentum continues, the token could test $0.024 and $0.0275, with a potential breakout target of $0.041.

However, any reversal could see TOKEN retrace toward the $0.0194 support level. If that fails, deeper downside levels lie at $0.0137 and $0.0112.

Conclusion

The trajectory of Real World Assets (RWAs) is currently influenced by a mix of market dynamics and institutional interest. As scrutiny around decentralized models increases and traditional finance begins to embrace tokenization, the future of RWAs looks promising yet cautious. Investors should remain vigilant and informed as the landscape develops.