The total market value of gold-backed cryptocurrencies has climbed past $3 billion, setting a new milestone for the growing asset class as physical gold reached an all-time high of over $4,000 per ounce on Monday.
According to data from CoinGecko, the combined market capitalization of leading gold-pegged tokens — PAX Gold (PAXG), Tether Gold (XAUT), and Kinesis Gold (KAU) — rose 2.5% in 24 hours to about $3.04 billion. Trading activity also spiked, with daily volume surpassing $640 million, underscoring the surge in investor demand for tokenized versions of the world’s oldest store of value.
Both PAXG and XAUT continue to dominate the sector, each trading just under $4,000 per token, closely mirroring the spot price of gold. The precious metal briefly touched $4,007 per ounce early Monday before easing slightly.
The rally in gold came alongside a broader upswing in precious metals. Silver prices climbed above $48.50, marking their highest level since 2011. Analysts attribute the movement partly to ongoing macroeconomic uncertainty, as the U.S. government shutdown entered its sixth day, prompting investors to seek safety in traditional and digital alternatives to fiat currency.
Meanwhile, risk assets have remained surprisingly strong. The S&P 500 set another record at 6,753 points, while Bitcoin reached a new all-time high of $126,200 before retreating to around $123,200, according to data from The Block.
Some analysts see this dual rally — across stocks, crypto, and commodities — as part of a broader “debasement trade”, where investors hedge against potential currency depreciation.
“Digital assets, particularly bitcoin, are emerging as clear beneficiaries,” said Javier Rodriguez-Alarcón, chief investment officer at XBTO and a former BlackRock and JPMorgan executive.
Still, the bitcoin-to-gold ratio, a measure of how many ounces of gold one bitcoin can buy, has slipped to 31.6, down from a December 2024 peak above 40. That decline signals that while both assets have gained this year, gold has outpaced bitcoin’s 30% year-to-date rise — a reminder that the yellow metal remains a powerful safe-haven anchor even in an increasingly digital financial world.
The surge in tokenized gold underscores how investors are blending old and new forms of value storage. As traditional markets face political and economic headwinds, gold-backed crypto assets are carving out a space where stability meets innovation — and for now, both seem to be shining.
