February 11 News, the tokenized commodities market has increased by 53% in less than six weeks, with a market capitalization surpassing $6.1 billion, making it the fastest-growing vertical in the real-world asset tokenization market. This surge is mainly driven by more gold being onboarded.
According to data from the crypto analytics platform Token Terminal, at the beginning of this year, the market capitalization of tokenized commodities was slightly above $4 billion, meaning an increase of about $2 billion in just over a month. The market is primarily composed of gold products, with Tether’s gold-backed token Tether Gold (XAUt) growing 51.6% over the past month to a market cap of $3.6 billion; Paxos’s PAX Gold (PAXG) increased 33.2% during the same period to a market cap of $2.3 billion.
The tokenized commodities market has grown 360% year-over-year, outpacing the tokenized stock market (42%) and the tokenized fund market (3.6%). Its scale is close to one-third of the $17.2 billion tokenized fund market and far exceeds the $538 million market cap of tokenized stocks.
On Thursday, Tether acquired a $150 million stake in the precious metals platform Gold.com, further expanding its tokenized gold strategy. The plan is to integrate the XAUt token into the Gold.com platform and explore options for allowing customers to purchase physical gold with USDT.
While the price of tokenized gold has risen, spot gold prices have increased over 80% in the past year, reaching a record high of $5,600 on January 29. Earlier this month, prices slightly retreated to around $4,700 but have since rebounded to $5,050 as of press time. In contrast, Bitcoin has been sluggish since October last year, falling 52.4% from its high of $126,080, dropping to about $60,000 last Friday, but then rebounding to $69,050.
Industry commentators note that although Bitcoin exhibits characteristics of a hard currency, its recent trend resembles a high-risk growth asset rather than a traditional safe haven. Jack Mallers, CEO of Strike, and Grayscale both believe that Bitcoin’s positioning as “digital gold” is being tested by the market.
Overall, the enthusiasm for tokenized gold highlights market preferences for safe-haven assets and reflects a trend among investors to rebalance their portfolios between traditional precious metals and crypto assets.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
NYSE Parent Company Finalizes Polymarket Investment, Totaling $1.6 Billion
In brief
ICE has invested another $600 million into Polymarket, fulfilling its commitment made in October.
Rival Kalshi recently raised $1 billion at a $22 billion valuation, outpacing Polymarket's current valuation.
Prediction markets face mounting regulatory pressure, with lawmakers
Decrypt2h ago
Solana Slips Below Key Support as ETF Flows Turn Negative
Key Insights:
Solana fell below a six-week trendline, shifting focus toward 85 dollars support and a potential move to $67.44 if weakness continues
Exchange outflows reached over 39 million dollars in three days, signaling reduced sell pressure while also tightening liquidity during price v
CryptoNewsLand2h ago
Cathie Wood's Ark Invest Dumps Meta, Nvidia and Bitcoin ETF Shares in Major Tech Sell-Off
In brief
Ark Invest parted with nearly $41 million in META and $26 million in NVDA shares on Thursday.
Cathie Wood's firm also dumped around $11 million worth of shares in its Bitcoin ETF.
The sales come amid a sustained market downturn as uncertainty in Iran shakes stocks and crypto.
Ar
Decrypt4h ago
Ripple (XRP) ETFs Turn Into a Ghost Town, Bitcoin (BTC) Funds Begin Macro Recovery
The spot crypto ETFs continue to be a vital part of the overall industry growth, but the most recent numbers show a rather contrasting picture.
On one hand, the BTC funds, even though they ended the week in the red as well, have shown some recovery attempts since the post-October mass withdrawal
CryptoPotato6h ago
Bitcoin ETF lost $170 million in a single day, reaching a three-week high! Ark also reduced its holdings in its own ETF.
On March 26, the U.S. spot Bitcoin ETF faced its largest redemption wave, with over $170 million flowing out in a single day. Ark Invest significantly reduced its holdings in its Bitcoin ETF, and market fluctuations triggered short-term profit-taking. Analysts believe that institutions remain cautiously optimistic about cryptocurrencies, but are influenced by macroeconomic factors. The Ethereum ETF also continued to see redemptions, setting a record for the longest streak of outflows.
区块客6h ago
Trump issued a 48-hour ultimatum to Iran, and the oil volatility index OVX rose to 93.
Trump issued a 48-hour ultimatum to Iran, demanding the restoration of passage through the Strait of Hormuz, escalating the situation. This move will weaken diplomatic buffers, escalate the nature of the conflict, and lead to increased volatility in the oil market, with oil prices and market volatility continuing to rise, reflecting market concerns over a prolonged conflict.
GateNews8h ago
