Tokenized Gold Gains Popularity as Prices Soar
Since the end of 2024, the price of gold has gone up by more than 27% compared to the U.S. dollar. This big increase has sparked new interest in digital gold tokens—cryptocurrencies backed by real gold. The number of people holding these tokens has jumped, with some tokens seeing growth of up to 172%.
Tether and Paxos Lead the Market
Two companies—Tether and Paxos—dominate the digital gold market. Tether’s token XAUT is worth about $822 million, and Paxos’ token PAXG is slightly ahead at $934 million. Together, they make up 85% of the $2.05 billion tokenized gold market.
What Are These Tokens?
- PAXG: Each token equals one ounce of high-quality gold stored in secure vaults, mostly in London.
- XAUT: Each token also represents one ounce of gold, kept safely in Swiss vaults.
Rising Interest
- In December 2024, 35,193 wallets held PAXG. Now, that number is 48,763—an increase of 38.56%.
- XAUT had only 3,104 wallets in December 2024. Today, it has 8,466 wallets, showing a massive 172% growth.
Why It Matters
More people are turning to digital gold as a safe and modern investment. These tokens combine the stability of gold with the speed and convenience of blockchain. If gold prices keep rising and more people accept crypto, the market for tokenized gold could grow even bigger.
