As conventional gold markets gain momentum, cryptocurrency investors are also getting involved—turning their attention toward tokenized gold options that provide both price exposure and the advantages of digital assets.
Assets like Paxos Gold (PAXG) and Tether Gold (XAUT) have seen year-to-date increases of 24.15% and 23.7%, respectively, reaching new highs above $3,300, which closely mirrors the performance of physical gold. Their current prices have slightly dipped to $3,265 and $3,244.
While gold-backed cryptocurrencies have thrived this year, the broader cryptocurrency landscape has undergone a decline. Bitcoin (BTC) has decreased in value by over 11% this year, and the global cryptocurrency market has plummeted by just over 30%, according to the CoinDesk 20 index.
The tokens, which are collateralized by physical gold and reflect its market price, experienced a notable rise in value as traders sought safe havens amid the growing uncertainty from the U.S.-China trade tensions.
This trend signifies a wider resurgence of gold as a secure investment. Inflows into gold exchange-traded funds reached 226.5 tonnes in the first quarter of 2025, marking the highest influx since early 2022, driven largely by demand in North America.
In a similar vein, gold-backed cryptocurrencies recorded net token minting of over $42.7 million during the first quarter of the year, contributing to gold’s price rise and pushing their total market capitalization close to $1.4 billion.