Paper: arXiv 2610.05873

Authors: Emre Atay Tümer, 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.

Complexity vs Empirical Score

  • Math Complexity: 4.0/10
  • Empirical Rigor: 8.0/10
  • Quadrant: Street Traders — practical and empirical, lighter on theory

Why this score: The paper presents a robust empirical analysis of RWA token transfer and ownership, offering novel insights into the true nature of on-chain liquidity. While the mathematical complexity is moderate, the rigorous data validation and statistical methodology are commendable. The provided code and data ensure high reproducibility.

Research Flowchart

  flowchart TD
    A[Research Question: Do token transfers and ownership measures accurately reflect liquidity in tokenized RWAs?] --> B{Methodology: Decompose Transfer Activity & Analyze Ownership Coverage};
    B --> C{Data/Inputs: Ethereum-based Tokenized Funds (Dec 2025 - Aug 2026)};
    C --> D[Computational Processes: Calculate Transfer Turnover (before/after event separation); Compare Concentration (vs. total supply vs. non-intermediary addresses)];
    D --> E[Key Finding 1: Transfer classification materially changes measured turnover];
    D --> F[Key Finding 2: Removing intermediaries can lower total concentration while increasing concentration among remaining addresses];
    E & F --> G[Outcome: Transfer activity and address concentration need careful interpretation; they provide evidence, not direct market liquidity measures.];