Pokémon Cards Go Digital—Crypto’s Next Big Gamble Unfolds

The tokenized Pokémon card market is heating up, with Collector Crypt emerging as a key player in the real-world asset (RWA) space. The platform recently launched a utility token, CARDS, which has surged tenfold in under a week, achieving a fully diluted valuation (FDV) of $360 million. This rapid appreciation reflects strong investor interest and is backed by projected annualized revenue of $38 million, driven in part by the popularity of its randomized “Gacha machine” feature. The Gacha system, which dispenses digital card packs, has generated $16.6 million in weekly sales and is in high demand, with the team struggling to maintain inventory levels.

The broader trading card RWA sector is also experiencing significant growth. According to CoinGecko, the market capitalization of trading card RWA platforms reached $87.2 million this week, marking a 32% increase over the previous 24 hours. Collector Crypt reported $44 million in monthly trading volume, up 124% month-over-month, while its competitor, Phygitals, saw a 245% increase in volume to $2 million. Analysts are drawing comparisons between the current momentum and pivotal moments in crypto history, such as the rise of prediction markets. Danny Nelson, a research analyst at Bitwise Asset Management, described the trend as a potential “Polymarket moment” for Pokémon and other trading card games (TCGs) due to their large and active communities.

By tokenizing physical cards on blockchain platforms like Solana, companies like Collector Crypt are addressing inefficiencies in the traditional trading ecosystem. Most TCG transactions still rely on physical card exchanges, with intermediaries verifying condition and authenticity. Tokenization enables instant trading, NFT-backed deposits, and global liquidity, reducing friction and expanding access. The Solana Foundation, which demonstrated a PSA 10 Charizard card being moved seamlessly on-chain, described the shift as a structural change in the trading card landscape. The foundation emphasized that startups are “cracking the code” by creating redeemable, frictionless digital experiences.

Underlying market dynamics support the trend’s longevity. In fiscal 2024, The Pokémon Company produced 9.7 billion cards, nearly triple the output from two years prior, according to industry data. That year alone accounted for 18.3% of all Pokémon cards ever produced, injecting liquidity into secondary markets. On-chain data from Raydium Protocol also shows that tokenized Pokémon packs have surpassed $70 million in total sales, including a record $5 million in 24 hours. A Dune Analytics dashboard further reveals that over 17,000 tokenized cards are currently circulating across marketplaces.

Despite the optimism, skepticism persists. Critics argue that tokenization could fragment liquidity across different protocols, diluting value. Established platforms such as eBay and PSA already offer robust vault and escrow services, raising questions about the necessity of blockchain solutions. Additionally, speculative hype could alienate both crypto and Pokémon card communities. Simple_peanut3, a builder at Grvt and longtime TCG collector, warned that “sooner or later, this may not end well for both sides — whether you’re a crypto native or a pure Pokémon collector”. Nevertheless, proponents highlight the potential for tokenized cards to serve as collateral for loans and to generate financial utilities beyond traditional markets.