As the worth of gold is on the cusp of breaking its April peak, the market dimension of crypto tokens backed by the dear metallic has already surged to contemporary all-time highs.
The general market capitalization of tokenized gold topped $2.57 billion, CoinGecko knowledge reveals, as the 2 main choices, Tether’s XAUT and Paxos’ PAXG tokens, noticed sizable inflows lately. Each tokens’s are designed to trace the worth of gold and are backed by bodily bars held in vaults.
XAUT (XAUT), issued by the agency that is behind the USDT stablecoin, noticed a $437 million bounce in its provide to a document $1.3 billion, per CoinGecko. Tether’s Treasury minted 129,000 tokens in early August on the Ethereum community, blockchain knowledge by Etherscan reveals.
PAXG (PAXG), the gold-backed token of U.S.-based stablecoin agency Paxos, swelled to a document market dimension of $983 million, DefiLlama knowledge reveals. That is been fueled by $141.5 million web inflows into the token since June.
Gold at present traded at round $3,470, simply shy of the April 22 peak hit amidst the tariff tantrum.
The dear metallic, which is extensively thought of as a protected haven asset throughout occasions of uncertainty, has been resurging currently, pushed by a steepening U.S. Treasury yield curve.
Learn extra: Gold’s Rally Has a Large Catalyst, and It May Assist Bitcoin Too
