As traditional gold markets are heated, cryptographic investors are following their example, which float to tokenized versions of the precious metal that both exposure to prices and digital flexibility offer.
The cryptocurrencies backed by Gold as Paxos Gold (Paxg) and Tether Gold (Xaut) have increased 24.15% and 23.7% respectively, respectively, to the new historical maxims exceeding $ 3,300, coinciding approximately with the performance of Spot Gold. Since then, their prices have retreated slightly at $ 3,265 and $ 3,244, respectively.
While gold -backed cryptocurrencies increased so far this year, the broader cryptocurrency market has been in a bearish trend. Bitcoin (BTC) has lost more than 11% of its value so far this year, while the broader cryptographic market has fallen into a little more than 30%, according to the Coindesk 20 index (CD20).
The tokens, which are backed by physical gold and track their price, experienced an increase in value as investors sought refuge for uncertainty induced by the growing commercial war of the United States-China.
The movement echoes a broader return to gold as a safe asset. ETF in Gold ETF reached 226.5 tons in the first quarter of 2025, the highest level since the beginning of 2022, according to data from the World Council of Gold. Almost 60% of that demand came from North America.
Similarly, the cryptocurrencies backed by Gold saw a coin of net tokens of more than $ 42.7 million in the first quarter of the year, according to data from Rwa.xyz, which helps the appreciation of Gold prices to increase its total market capitalization about $ 1.4 billion.
