Tokenized Gold Market Soars Past $1 Billion
The current market capitalization for tokenized gold has exceeded $1 billion, with a current value of $1.02 billion, rising by 2.4% over the past 24 hours.
Trading volume for tokenized gold has also exceeded $25.5 million during this time. PAX Gold and Tether Gold are the top contenders in this market, with market capitalizations of almost $523 million and nearly $499 million, respectively.
The next closest competitor is the Perth Mint Gold Token, with a market cap of only $2.46 million, making this niche market essentially a two-horse race. Both PAX Gold and Tether Gold saw a 24-hour market price increase of over $2,000, in line with the underlying asset, gold.
The market capitalization for PAX Gold is currently higher than Tether Gold, although both have seen 24-hour market price increases in line with the price of gold.
The market cap milestone for tokenized gold crypto assets comes as the price of gold rose to a 13-month high, surpassing $2,025. Tokenized gold, such as PAX Gold and Tether Gold, are tokens pegged to the price of gold, utilizing distributed ledger technology like Ethereum.
They allow investors and traders to self-custody and trade on centralized exchanges. Crypto whales often use tokenized gold to hedge their crypto exposure with gold.
READ MORE: The Rise of BRICS Nations and Its Implications for Crypto and the US Dollar
The major centralized exchanges, Kraken and Binance, are the leading markets for PAX Gold, whereas Bitfinex is the dominant player in the Tether Gold market. Although Uniswap provides trading services for these tokens, it has substantially lower liquidity levels.
In addition to being a safe-haven asset, tokenized gold is also seen as a solution to counter-party risks that bank customers face, as crypto’s digital bearer assets offer stability of value.
While $1 billion may seem significant, tokenized gold has surpassed this milestone before and has spent much of 2022 well above the $1 billion market, falling through in August 2022 and not returning until last month.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
