Pokémon trading cards are being considered for large-scale tokenization on the blockchain, which could significantly impact the $21.4 billion market. Bitwise research analyst Danny Nelson believes this shift is similar to what Polymarket achieved for prediction markets, marking a breakthrough for cryptocurrency in mainstream applications. While real-world asset (RWA) tokenization has expanded to a $28.2 billion market, it mainly focuses on traditional finance assets like stocks and real estate, which already have efficient digital systems in place.

Nelson suggests that Pokémon card trading would gain more from blockchain technology, as sellers currently face challenges shipping physical cards. Despite this inefficiency, the leading platform, Whatnot, recorded $3 billion in sales last year, indicating the market’s informal nature. There are currently no Pokémon exchange-traded funds (ETFs) or investment funds available, though Nelson believes they may come sooner than expected.

Recently, Collector Crypt entered the scene as a tokenization platform for trading Pokémon cards on Solana, allowing quick trades and profitable exits. Its CARDS token has surged to a $450 million valuation since its launch. Traders are optimistic about potential revenues, estimated at $38 million annually, which may lead to buybacks of the tokens. Collector Crypt’s Gacha Machine project has reportedly generated $16.6 million in revenue recently.

In addition, NFT trading volumes rose by 9% in August, totaling $578 million, although the number of sales decreased by 4%, indicating that collectors are spending less transactions.