Tokenized Gold Market Cap Approaches $2 Billion Amid Tariff Uncertainties
Tokenized gold has gained traction amid market turmoil, outperforming cryptocurrencies and other risk assets. Key developments include:
- Market cap of gold-backed tokens reached nearly $2 billion, a 5.7% increase in 24 hours.
- Gold prices briefly hit an all-time high above $3,170/oz.
- Weekly trading volume for tokenized gold exceeded $1 billion, the highest since March 2023.
- Paxos Gold (PAXG) and Tether Gold (XAUT) saw weekly trading volumes surge over 900% and 300%, respectively.
- PAXG recorded inflows totaling $63 million since January 20.
- Physical gold experienced double-digit gains in 2025 despite a brief market-wide sell-off.
- Since Trump's inauguration, tokenized gold's market cap increased by 21%; stablecoins rose by 8%, while bitcoin fell by 19%.
Tokenized gold is being recognized as a diversification strategy within the crypto space, offering stability linked to physical gold.