As conventional gold markets warmth up, crypto traders are following go well with—flocking to tokenized variations of the dear steel 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 this point this 12 months, the broader cryptocurrency market has been in a downtrend. Bitcoin (BTC) has misplaced greater than 11% of its worth to this point this 12 months, whereas the broader crypto market has fallen by a little bit over 30%, primarily based on the CoinDesk 20 (CD20) index.
The tokens, that are backed by bodily gold and observe its worth, skilled a surge in worth as traders sought refuge from the uncertainty induced by the escalating U.S.-China commerce struggle.
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 stage 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 internet token minting of over $42.7 million within the first quarter of the 12 months, based on information from RWA.xyz, serving to together with gold’s worth appreciation increase their whole market capitalization close to $1.4 billion.