As conventional gold markets warmth up, crypto buyers are following go well with—flocking to tokenized variations of the dear metallic that supply each value publicity and digital flexibility.
Gold-backed cryptocurrencies like Paxos Gold (PAXG) and Tether Gold (XAUT) have risen 24.15% and 23.7% respectively year-to-date to new all-time highs above $3,300, roughly matching the efficiency of spot gold. Their costs have since receded barely to $3,265 and $3,244, respectively.
Whereas gold-backed cryptocurrencies surged up to now this yr, the broader cryptocurrency market has been in a downtrend. Bitcoin (BTC) has misplaced greater than 11% of its worth up to now this yr, whereas the broader crypto market has fallen by just a little over 30%, primarily based on the CoinDesk 20 (CD20) index.
The tokens, that are backed by bodily gold and monitor its value, skilled a surge in worth as buyers sought refuge from the uncertainty induced by the escalating U.S.-China commerce battle.
The transfer echoes a broader return to gold as a safe-haven asset. Inflows into gold ETFs hit 226.5 tonnes within the first quarter of 2025, the very best degree since early 2022, in response to information from the World Gold Council. Almost 60% of that demand got here from North America.
Equally, gold-backed cryptocurrencies noticed web token minting of over $42.7 million within the first quarter of the yr, in response to information from RWA.xyz, serving to together with gold’s value appreciation increase their whole market capitalization close to $1.4 billion.
