Tokenized commodities market tops $6.1bn…up 53% on surge in gold prices

Source

YM Lee

Summary

The tokenized commodities market has grown 53% in six weeks, rising from $4bn at the start of the year to $6.1bn recently.
Tether Gold (XAUt) and Pax Gold (PAXG) posted market capitalizations of $3.6bn and $2.3bn, respectively, accounting for more than 95% of the overall tokenized commodities market.
Spot gold prices have climbed more than 80% over the past year, while Bitcoin (BTC) has fallen about 52.4% from its peak and is being treated like a tech stock rather than a safe-haven asset.

Forecast Trend Report by Period

The tokenized commodities market has surpassed $6bn.

According to Cointelegraph on the 10th (local time), the tokenized commodities market rose to $6.1bn recently from around $4bn at the start of the year. That represents 53% growth in six weeks, with roughly $2bn added year-to-date.

The expansion was driven by gold-backed tokens. Unlike Circle’s US dollar stablecoin USDC, Tether’s gold-pegged Tether Gold (XAUt) saw its market capitalization jump 51.6% over the past month to $3.6bn. Pax Gold (PAXG), issued by Paxos, also rose 33.2% over the same period to $2.3bn. The two products account for more than 95% of the overall tokenized commodities market.

The tokenized commodities market is up 360% year-on-year. Over the same period, the tokenized equities market grew 42% and the tokenized funds market rose 3.6%. The tokenized funds market currently stands at $17.2bn, while the tokenized equities market is around $538m.

Tether recently invested $150m in the precious-metals platform Gold.com, expanding its tokenized gold strategy. Tether said it will integrate XAUt into the Gold.com platform and is also considering ways to purchase physical gold using USDT.

Spot gold prices have climbed more than 80% over the past year, hitting an all-time high of $5,600 on Jan. 29. Prices later corrected to $4,700, but are currently trading around $5,050.

By contrast, Bitcoin (BTC) has fallen about 52.4% from its peak of $126,080 in October last year, sliding to near $60,000 before recovering to trade in the $69,000 range.

Jack Mallers, CEO of Strike, said Bitcoin is still being treated like a tech stock rather than a safe-haven asset. Grayscale also said in a recent report that Bitcoin’s “digital gold” narrative is being put to the test, with recent price action resembling that of high-risk growth assets.