Tokenized Gold Market Nears $3B as Bullion Hits Record High
Gold prices have reached a new all-time high, surpassing $3,800 per ounce, marking a 47% increase in 2023. This rally has impacted the crypto market, with gold-backed tokens reaching a market cap of $2.88 billion.
- Tether Gold (XAUT) and Paxos' PAX Gold (PAXG) lead this category, with capitalizations at $1.43 billion and $1.12 billion, respectively.
- PAXG saw over $40 million in net inflows in September, achieving a monthly trading volume record of over $3.2 billion.
- XAUT reported a monthly trading volume of $3.25 billion, with market cap growth driven by metal appreciation, without new token minting after August's $437 million rise.
The tokenized gold market may continue to grow due to favorable macroeconomic conditions, including expected Federal Reserve rate cuts and concerns about a U.S. government shutdown. Meanwhile, Bitcoin (BTC) trails behind gold with a 22% year-to-date return.
