- Gold-backed digital tokens reached a combined market value of $4.38 billion, with XAUT hitting a record price of $4,425.
- Investors continue to prefer hedging against macroeconomic uncertainty rather than taking high risks in cryptocurrency.
- Bitcoin increased to $89,800 while major technology stocks and Asian equity indexes rose.
- Institutional investment in digital assets showed net outflows of $952 million last week, signaling cooling enthusiasm.
- Curve DAO rejected a $6.3 million funding proposal for its development team amid transparency concerns.
Gold-backed digital tokens surged recently, driven by a record price for the largest token, XAUT, which reached $4,425. Other gold-backed tokens like PAXG and kineses gold (KAU) also increased, pushing the total gold-backed token market value to $4.38 billion. This rise reflects investors’ ongoing preference for safer assets amid economic uncertainty.
“The message is clear. Investors are still hedging macro uncertainty rather than leaning aggressively into risk,” said Timothy Misir, head of research at BRN. Bitcoin climbed to $89,800 as the dollar index fell, helping boost Asian equity markets. Semiconductor companies like Taiwan Semiconductor Manufacturing and Samsung Electronics gained, easing concerns about an AI-driven market bubble. Futures tied to the S&P 500 advanced about 0.3%, indicating a positive start for the U.S. market.
Despite these positive movements, data indicates institutional interest in digital assets is waning. Last week, investment products worldwide saw net outflows totaling $952 million, ending a four-week period of inflows, according to CoinShares data. Derivative markets show mixed signals, with some cryptocurrencies registering small increases in futures open interest, while others experienced capital withdrawals. BTC futures open interest on the CME fell below 120,000 BTC for the first time this year, highlighting reduced institutional activity.
Funding rates in perpetual markets point to a preference for short positions on cryptocurrencies such as Bitcoin Cash (BCH) and Shiba Inu (SHIB), while major tokens maintain slightly positive rates. Options markets show puts trading at a premium to calls, though the bias has eased slightly since Friday.
In governance news, the decentralized organization Curve DAO voted down a proposal to allocate approximately $6.3 million in CRV tokens to Swiss Stake AG, the development firm led by Curve Finance founder Michael Egorov. The proposal aimed to fund development, infrastructure, and security for the team managing the decentralized exchange. Opposition was strong, with 54.46% voting against and support from some major voting wallets linked to Yearn Finance and Convex Finance.
Concerns focused on transparency, as some DAO members requested detailed reporting on previous expenses before approving further funding. One member stated, “The DAO deserves an itemized and transparent list of expenses and shouldn’t be expected to authorize any more funding until this requirement is met and the community has the opportunity to openly discuss whether those expenses are reasonable.” The CRV token rose about 4% over 24 hours, outperforming the wider crypto market as measured by the CoinDesk 20 (CD20) index. For further details on the proposal, see the Ethereum/proposals/1286-ownership/”>Curve DAO governance page.
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