March 2 News: As geopolitical risks continue to escalate, global demand for safe-haven assets has significantly increased, driving gold prices higher and prompting a rapid rise in tokenized gold assets in the crypto market. Data shows that on that day, international gold prices rose about 2%, reaching a high of $5,394 per ounce during trading— the highest since January 30— before slightly retreating to around $5,363.7. The market generally believes that increased military actions by the U.S. and Israel against Iran have heightened global tensions, prompting funds to flow into precious metals markets seeking safety.
Against this backdrop, some funds are beginning to allocate gold assets via blockchain channels. On-chain analysis platform Lookonchain discovered that a previously inactive wallet address, 0x1C70, used about $1 million in stablecoins to purchase PAX Gold (PAXG) and Tether Gold (XAUT). The address completed multiple exchanges in a short period and currently holds about $4 million in stablecoins, indicating it may continue to increase its holdings of tokenized gold.
Another transaction also drew market attention. According to on-chain monitoring platform OnchainLens, an Ethereum whale exchanged 1,000 ETH for 358.49 XAUT, worth approximately $1.94 million. Although this address incurred an unrealized loss of about $60,000 in this operation, it still chose to shift assets into gold-related tokens, reflecting a tendency among some funds to reduce risk exposure amid market volatility.
Institutional fund flows are also noteworthy. London-based asset management firm Abraxas Capital Management recently received 28,723 XAUT tokens from a vault address of a stablecoin issuer, valued at about $151 million. This is considered one of the largest XAUT transfers on-chain in the past three weeks. Data from blockchain intelligence platform Arkham Intelligence shows that the firm has been actively involved in the stablecoin and tokenized asset markets over the long term.
Meanwhile, the tokenized gold sector itself continues to expand. Industry data indicates that the total market value of related assets has exceeded $6 billion, with trading activity significantly increasing. Market tracking platform CoinGecko reports that the daily trading volume of XAUT and PAXG recently surpassed $1 billion each, reflecting growing investor interest in blockchain-based gold assets.
Analysts believe that tokenized gold offers a way to hold gold without relying on traditional financial systems and has certain appeal during market volatility. However, whether this influx of funds is merely short-term risk aversion or a long-term shift toward commodity-backed digital assets remains to be further validated by additional market data.
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
Middle East conflict impacts Asian stock markets, Bitcoin holds at $67,000, Ethereum and Solana come under pressure and retreat
Middle Eastern geopolitical tensions continue, and risk aversion in Asian financial markets intensifies, leading to significant declines in major stock indices. Bitcoin experiences a slight dip but remains within a key range, with market focus on institutional funding and ETF inflows. Mainstream cryptocurrencies like Ethereum and Solana pull back as risk appetite contracts. Uncertainty in the macro environment and volatility in the energy markets increase market pressure.
GateNews4m ago
Japan's "Sanae Token" plummets 58%! Prime Minister Sanae Takashi denies any connection, as political meme coin regulatory risks intensify
The "Meme Coin" under Japanese Prime Minister Fumio Kishida's name has plummeted 58% after being accused of having no connection to him. The token was launched on February 25th, claiming to be related to political support. After Kishida denied the connection, the market reacted strongly, and the Financial Services Agency has launched an investigation, focusing on compliance issues related to crypto assets.
GateNews1h ago
PHA (Phala Network) increased by 34.79% in the past 24 hours
Gate News Bot Message, March 04, According to CoinMarketCap data, as of press time, PHA (Phala Network) is currently trading at $0.04, up 34.79% in the past 24 hours, with a high of $0.04 and a low of $0.02. The current market capitalization is approximately $30.9 million, an increase of $7.97 million compared to yesterday.
Phala Network is a hardware-secure privacy computing platform dedicated to delivering verifiable AI technology and providing enterprise-level privacy protection. The platform supports deploying privacy-preserving AI models within minutes through Trusted Execution Environment (TEE) technology.
Phala Network has earned the trust of over 5,000 users, including industry players like NVIDIA, OpenRouter, NEAR, and Vana.
GateNews1h ago
Bitcoin Wobbles Despite $1B ETF Inflows Amid Rising Oil Prices
_Oil shock and Fed uncertainty pressure Bitcoin, while ETF inflows fail to restore strong institutional demand._
Bitcoin swung sharply after U.S.-Israel strikes on Iran triggered a weekend risk-off move across
LiveBTCNews1h ago
ETH drops below 1950 USDT
Gate News bot message, Gate market display, ETH drops below 1950 USDT, current price 1949.45 USDT.
CryptoRadar1h ago
KAVA (Kava) 24-hour increase of 18.37%
Gate News Bot Message, March 04, According to CoinMarketCap data, as of press time, KAVA (Kava) is trading at $0.06, up 18.37% in the past 24 hours, reaching a high of $0.07 and a low of $0.05. The 24-hour trading volume is $51.4 million. The current market capitalization is approximately $68.4 million, an increase of $10.6 million from yesterday.
Kava is a decentralized blockchain that combines Cosmos’s speed and interoperability with the Ethereum developer ecosystem. The network communicates with 30 chains and $60 billion in assets within the Cosmos ecosystem via the IBC protocol, while also providing an EVM-compatible execution environment, enabling Solidity developers to build applications on the Kava network. Currently, the network has 120 million staked KAVA and 100 active validators.
GateNews1h ago
