- The tokenized commodities market surged over 53% to $6.1 billion in less than six weeks, driven by a massive influx of Gold onchain.
- Tether‘s XAUt and PAX Gold dominate the sector, with their combined market caps rising to nearly $6 billion.
- While tokenized commodities grew 360% year-on-year, Bitcoin’s price has struggled, falling over 50% from its October high.
The tokenized commodities market, led by onchain gold, exploded by over 53% to exceed $6.1 billion in under six weeks, making it the fastest-growing segment of the real-world asset tokenization space. This dramatic growth has been fueled by a $2 billion increase since January 1, according to data from crypto analytics platform Token Terminal. Consequently, the market has now outpaced the growth of tokenized stocks and funds by a significant margin.
Gold-backed tokens are the dominant force in this vertical. Tether Gold (XAUt) saw its market cap rise 51.6% to $3.6 billion, while PAX Gold (PAXG) increased 33.2% to $2.3 billion, data shows. The sector’s 360% year-on-year growth far exceeds the 42% and 3.6% increases for tokenized stocks and funds, respectively.
Tether is aggressively expanding its presence, recently acquiring a $150 million stake in precious metals platform Gold.com. The company announced it would integrate its XAUt token and explore allowing customers to purchase physical gold with its USDT stablecoin. This move aims to broaden access to tokenized gold amid its rising popularity.
Meanwhile, the spot price of physical gold rallied more than 80% over the past year to set a new all-time high. In stark contrast, Bitcoin has been in a slump since a major market crash in October, falling over 50% from its peak. Some commentators, like Strike CEO Jack Mallers, speculate Bitcoin is still treated like a high-risk growth asset rather than a safe haven.
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