Tokenized gold market capitalization nears $2 billion

Since Donald Trump's inauguration, tokenized gold has emerged as one of the fastest-growing sectors in crypto, with its market capitalization rising 21%, according to a CEX.IO report. By comparison, bitcoin fell 19% and the overall cryptocurrency market declined 26% during the same period.

Amid geopolitical risks and tariff instability, demand for gold-backed digital assets has surged. On Wednesday, their total market capitalization reached nearly $2 billion with weekly trading volume exceeding $1 billion, the highest since March 2023.

The increase in activity coincided with physical gold prices reaching a historic high above $3,200 per ounce on Friday. The two largest tokens Paxos Gold (PAXG) and Tether Gold (XAUT) saw trading volumes jump over 900% and 300%, respectively.

As Alexander Kerya, CEX.IO's Vice President of Product Management, notes, tokenized precious metals have become a crucial diversification tool in the crypto ecosystem. He explains they combine physical assets' stability with digital solutions' flexibility, making gold investments more accessible.