Capitalization of Tokenized Gold Soared 60% in the Last Three Months
The value of gold-backed tokens has shown significant growth in 2022 due to the global situation.
The market cap of gold-backed commodity tokens has surpassed $1 billion, according to a weekly report by Arcane Research. With global economic instability, investors prefer to invest in commodity-backed assets, a safe haven for capital amid inflation.
Gold is one of the traditional assets that help preserve savings during economic crises. Due to the current global environment, demand for gold has increased, which can be seen in the chart of the TradingView service. Investor interest in tokenized gold has also grown significantly, Arcane Research reports.
Over the past three months, the value of tokenized gold has risen steadily, up 60%, while cryptocurrencies, including BTC, have shown high volatility. The leading “gold” tokens are Pax Gold and Tether Gold. We talked about them in more detail in a special article.
Despite the increase in market capitalization of tokenized gold, its share in the total cryptocurrency market is 0.05%.