As traditional gold markets continue to gain momentum, cryptocurrency investors are increasingly seeking exposure to gold through digital assets like Paxos Gold (PAXG) and Tether Gold (XAUT), which offer a blend of gold’s value with the liquidity and accessibility of blockchain technology.
PAXG and XAUT have surged by 24.15% and 23.7%, respectively, year-to-date, reaching record highs above $3,300, closely tracking the performance of spot gold. However, both tokens have slightly pulled back to $3,265 for PAXG and $3,244 for XAUT.
While gold-backed cryptocurrencies are outperforming the wider market, the cryptocurrency sector has faced a significant downturn. Bitcoin (BTC) has dropped over 11% this year, and the broader crypto market, as indicated by the CoinDesk 20 (CD20) index, has fallen more than 30%.
This uptick in demand for gold-backed tokens reflects a broader flight to safety, as investors turn to gold amid rising global uncertainties, including the escalating U.S.-China trade tensions. Gold ETFs saw massive inflows in Q1 2025, with 226.5 tonnes added—marking the highest level of demand since early 2022. Notably, nearly 60% of the inflows came from North America, according to data from the World Gold Council.
Meanwhile, gold-backed cryptocurrencies saw $42.7 million in net token minting during the first quarter of the year, bringing their total market capitalization close to $1.4 billion, further fueling the growth of both gold-backed digital assets and the price of gold itself.
About The Author
More Stories
Bitcoin dips to $78,000 after strategy-led rally exhausts buying pressure, according to market participants.
While everyday traders rush to sell, crypto mega-whales are calmly accumulating during Bitcoin’s dip.
Cryptocurrencies slide ahead of Monday, as the federal shutdown clock ticks down.