Gold-Backed Cryptocurrencies PAXG and XAUT Surge Amid Market Downtrend
As traditional gold markets strengthen, interest in gold-backed cryptocurrencies is rising. Key points include:
- Paxos Gold (PAXG) and Tether Gold (XAUT) increased by 24.15% and 23.7% year-to-date, reaching all-time highs above $3,300.
- Current prices are approximately $3,265 for PAXG and $3,244 for XAUT.
- In contrast, Bitcoin has declined over 11% this year, with the broader crypto market down more than 30% according to the CoinDesk 20 index.
- Gold-backed tokens surged in value amid uncertainty from the U.S.-China trade war.
- Inflows into gold ETFs totaled 226.5 tonnes in Q1 2025, the highest since early 2022, with nearly 60% from North America.
- Gold-backed cryptocurrencies saw net minting of over $42.7 million in Q1, raising their total market cap to around $1.4 billion.
