Security Tokens Noted a Market cap Increase Last Month Despite 58% Trading Volume dip

BlocDesk Security Tokens Monthly

Security tokens are a very interesting industry worth keeping an eye on. Although the monthly STOmarket report confirms trading volume was down in September, the overall industry growth remains in place. Overall, September was a fairly decent month for STOs. 

Security Tokens in September 2020

Looking back at the report created by the STOMarket team, some interesting trends become apparent. Following multiple months of increasing trading volume, things came to a grinding halt in September of 2020. More specifically, the overall STO trading volume decreased by over 58%. It was expected the growth could not be sustained forever, though. Sometimes, a minor setback is needed prior to achieving the next level of success. 

Granted, the STO trading volume in September is still higher than that of July 2020. A remarkable statistics that cannot be overlooked. It confirms security tokens are still in a very good place, despite September’s dip. To date, it is the second-best month on record for STOmarket. That in itself is a strong signal for the industry as a whole.


Source: STOMarket

A slowing in overall STO trading is a sign of maturation, the report mentions. One may also argue this is a clear sign of overall health. Linear paths are impossible to come by in any financial industry. What goes up, will eventually come down, and vice versa. 

Despite the decrease in trading volume, the market cap for security tokens increased by nearly 4%. This is not necessarily a development most people would expect to see. That being said, the market growth and trading volume are often two completely different things. One factor can help the other become more outspoken, but they aren’t always correlated either. 

Strong Performers and new Tokens

In the report, it is mentioned that several security tokens performed rather well in September. Interestingly enough, the top performers are all found on Uniswap. They noted an increase in value between 17.12% and 27.9%. For the “worst” performer, the steepest decline in value is 9.33%. Not too much volatility, all things considered. 

BlocDesk STO performance September 2020
Source: STOMarket

A few new security tokens can be found on STOmarket these days. During September, 3 new tokens have been added. MERJ-s is tokenized equity of the MERJ Exchange. Additionally, there’s Minervest’s MSTV-S, as well as UPRETS’ OST1 token. This latter offering represents the tokenized Oosten residential apartment building in Brooklyn, NY. 

This goes to show the tokenization of real-world assets is still growing in popularity. Especially real estate offers some interesting opportunities worth exploring. That became apparent during our recent interview with Herwig Konings as well. Security tokens are in a good place, despite the drop in overall trading volume last month,