Lofty, a real-world asset (RWA) project focusing on real estate tokenization, has experienced an increase in its total value locked (TVL), which is at a record $37.6 million as of this writing.
Lofty is a decentralized protocol that facilitates the sale of fractionalized real estate. It leverages Algorand, a blockchain network launched in 2019.
The platform enables users to purchase fractional ownership of rental properties and earn from rent payouts distributed daily. Thanks to the fractional ownership feature, investors can gain exposure to multiple properties, choosing those with the highest potential returns.
Lofty’s marketplace lists over 100 properties with total prices ranging from $40,000 to $2.5 million. Each property is usually split into thousands of tokens representing fractional ownership. The price per token ranges between $20 and $70.
While some properties don’t generate yield and are purchased for price appreciation, the majority offer yields that can reach up to 31% annually.
Each property has a detailed profile on the platform, displaying a chart with the token’s price fluctuations. For example, this $1.1 million home in New Mexico is available for partial ownership via tokens worth $59.30, down from $66 on September 7.
This particular property offers a rental yield exceeding 28%, making it one of the highest-yielding options on Lofty.
Besides the increase in the value of the properties listed on Lofty, the platform’s TVL has been supported by a recovery in the price of ALGO, the native cryptocurrency of Algorand, as investors can buy fractional ownership with USDC or ALGO.
Lofty is currently the second-largest decentralized app (dapp) on Algorand, which has $67 million in TVL, down from a record $293 million registered in February of this year.
However, Algorand’s TVL, as tracked by DefiLlama, excludes Lofty’s liquidity to avoid double counting.
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