As conventional gold markets warmth up, crypto buyers are following go well with—flocking to tokenized variations of the valuable metallic that supply each worth 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 to date this yr, the broader cryptocurrency market has been in a downtrend. Bitcoin (BTC) has misplaced greater than 11% of its worth to date this yr, whereas the broader crypto market has fallen by a little bit over 30%, based mostly on the CoinDesk 20 (CD20) index.
The tokens, that are backed by bodily gold and monitor its worth, skilled a surge in worth as buyers sought refuge from the uncertainty induced by the escalating U.S.-China commerce warfare.
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, based on 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, based on information from RWA.xyz, serving to together with gold’s worth appreciation elevate their whole market capitalization close to $1.4 billion.
