Gold tokenization gains momentum despite lower traditional demand

CoinDesk highlights a shift in activity in the gold market, with purchases by central banks slowing down and demand from exchange-traded funds (ETF) and gold-backed cryptocurrencies rising.

According to the rwa.xyz website, more than $80 million worth of such tokens were issued during the past month. Consequently, the market capitalization of the sector rose by 6% to $1.43 billion. Moreover, the mining volume for cryptocurrencies backed by the yellow metal reached a three-year high, CoinDesk reports.

The World Gold Council says total demand for the precious metal for the first three months of 2025 hit 1,206 tons. This reading is 1% higher than in 2024 and is the largest first-quarter figure since 2016, despite the slowdown in gold purchases by central banks. Their demand dropped to 244 tons, down from 365 tons between October and December 2024. Meanwhile, investment demand rose more than twofold to 552 tons.

On the back of these factors, the average gold price for the quarter reached a record $2,860 per ounce, up 38% from the previous year, CoinDesk says.