Markets, Gold, Tokenized Assets, Real World Assets, CEX.io Gold-backed crypto tokens outperformed most crypto sectors, along with stablecoins, in market cap growth since Trump’s Jan. 20 inauguration, a CEX.IO report talked about.
As menace belongings along with cryptocurrencies struggled on Thursday amid tariff uncertainties, tokenized gold as quickly as as soon as extra emerged as an outperformer throughout the carnage.
The market capitalization of gold-backed tokens swelled to easily beneath $2 billion on Wednesday, up 5.7% over the earlier 24 hours, in response to CoinGecko info. The rise coincided with the yellow metallic briefly touching a current all-time above $3,170/oz, TradingView reveals.
Alongside the worth rally, gold tokens expert a frenzy of train and demand over the earlier weeks, fueled by the broader market turmoil. Weekly tokenized gold shopping for and promoting amount surpassed $1 billion, one of the best as a result of the U.S. banking turmoil of March 2023, in response to a report by digital asset platform CEX.IO.
The two largest tokens, Paxos Gold (PAXG), Tether Gold (XAUT), making up nearly all of the tokenized gold market, observed their weekly shopping for and promoting volumes surging over 900% and 300%, respectively, since January 20, in response to the report citing CoinGecko info. PAXG moreover expert regular inflows totalling $63 million all through this period, DefiLlama data reveals.
The rally tracks the broader optimistic elements in bodily gold, which posted double-digit will improve in 2025 amid geopolitical uncertainty and inflation issues. However, even gold wasn’t spared by means of the market-wide sell-off triggered by U.S. tariffs, with prices briefly dropping 6% sooner than quickly recovering to file highs.
Since Trump’s inauguration, tokenized gold has been one amongst crypto’s prime performing sectors, with its market cap up 21%, the report well-known. By distinction, stablecoins gained a further modest 8% in market cap, whereas bitcoin declined 19% and the general crypto market misplaced 26%.
“Tokenized gold is emerging as one of the key diversification strategies among crypto-native users, alongside bitcoin,” wrote Alexandr Kerya, VP of product management at CEX.IO. “It provides a safer and more stable approach to portfolio management, enabling users to stay within the crypto ecosystem while benefiting from the value and stability of the underlying physical asset.”
“At the same time, the broader RWA narrative helps make gold exposure more accessible and intuitive for users who may not have considered it before,” Kerya added.
Disclaimer: This article, or parts of it, was generated with assist from AI devices and reviewed by our editorial crew to ensure accuracy and adherence to our necessities. For further information, see CoinDesk’s full AI Policy.
CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data Read More