Gold-backed cryptocurrencies are showing significant price increases amid global trade uncertainty driven by U.S. policies.
Record Prices of Gold-Backed Cryptocurrencies
Tether Gold (XAUT) and Paxos Gold (PAXG) reached record values on April 22, with Tether Gold jumping to $3,529 and Paxos Gold to $3,520. Additionally, other gold-backed tokens like Quorium (QGOLD) and Kinesis Gold (KAU) have risen by 8.5% and 7.6% respectively in the past month. All four tokens have surged by 40% or more over the past year.
Factors Driving Price Increases
According to Tether's report, the increased demand for XAUT is driven by macroeconomic factors such as escalating global economic uncertainty, geopolitical conflicts, and a rising demand for inflation-resistant assets. Since U.S. President Donald Trump renewed the trade war, gold prices have significantly increased. On April 2, the day the tariffs were announced, the price of one ounce of gold was $3,115, and by April 28, it rose to $3,335, marking a 7% increase in less than 30 days.
Real-World Asset Tokenization Market
The tokenization of real-world assets (RWA) is an emerging trend. According to RWA.xyz, the market capitalization of tokenized RWAs (excluding stablecoins) stands at $21.6 billion, marking an 8.6% increase over the past month. Tether Gold and Paxos Gold exemplify RWA tokenization, each token reportedly backed by one troy ounce of gold. Tokenizing gold offers advantages such as instant settlements and the ability to use tokens for purchases of goods and services.
Gold-backed cryptocurrencies continue to attract investor attention amid economic uncertainty, demonstrating significant growth over the past year.
