PANews reported on April 14 that according to CoinDesk, as the traditional gold market heats up, cryptocurrency investors have followed suit and turned to investing in tokenized versions of the precious metal, which provide both price exposure and digital flexibility. So far this year, gold-backed cryptocurrencies such as Paxos Gold (PAXG) and Tether Gold (XAUT) have risen by 24.15% and 23.7%, respectively, to a new high of more than $3,300, an increase roughly equivalent to spot gold. Subsequently, their prices fell slightly to $3,265 and $3,244, respectively.
While gold-backed cryptocurrencies have surged so far this year, the broader crypto market is on a downtrend. Bitcoin is down more than 11% year to date, while the broader crypto market is down a little over 30%. These tokens, which are backed by physical gold and track its price, have surged in value as investors seek shelter from uncertainty sparked by the escalating trade war between the United States and China. The move reflects the broader return of gold as a safe-haven asset. In the first quarter of this year, gold-backed cryptocurrencies saw net minting of more than $42.7 million in tokens, according to RWA.xyz, which, combined with rising gold prices, has a total market value of nearly $1.4 billion.
