As the traditional gold market heats up, Crypto Investors is following the lawsuit. This is categorized into tokenized versions of precious metals that offer both price exposure and digital flexibility.
Gold-backed cryptocurrencies such as Paxos Gold (Paxg) and Tether Gold (Xaut) rose 24.15% and 23.7% year-on-year, respectively, roughly in line with Spot Gold's performance from a new all-time high of over $3,300. Their prices then went just $3,265 and $3,244 respectively.
Gold-backed cryptocurrencies have so far surged this year, but the wider cryptocurrency market has been in the caves. Bitcoin (BTC) has lost more than 11% of its value so far this year, but based on the Coindesk 20 (CD20) index, the broader crypto market is just over 30%.
The token, backed by physical gold, tracking its prices, experienced a surge in value as investors sought to evacuate from the uncertainty caused by the escalation of the US-China trade war.
The move reflects a broader return to gold as a safe haven asset. According to data from the World Gold Council, in the first quarter of 2025, the highest level since early 2022. Almost 60% of that demand came from North America.
Similarly, according to data from RWA.xyz, gold-backed cryptocurrencies saw nettoken mint of over $42.7 million in the first quarter of the year, with a rise in total market capitalization nearly $1.4 billion with gold price viewing.
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