According to statistics from the tokenized real-world asset analysis company RWA.xyz, tokenized precious metals first surpassed the $1 billion mark on September 20. RWA.xyz stated that the primary driver of this market growth is the gold token XAUT issued by Tether, which has seen its market capitalization rise from $384 million at the beginning of this year to $491 million.
Currently, the largest tokenized commodity is the gold token PAXG issued by Paxos, which first exceeded a market capitalization of $500 million over the past weekend. Data from RWA.xyz indicates that PAXG and XAUT account for 99% of the market share.
Market capitalization changes of tokenized commodities (Source: RWA.xyz)
In terms of other indicators, the number of wallet addresses holding tokenized commodities has been steadily increasing, rising from 40,000 at the beginning of 2023 to 57,000, with the most significant growth seen in addresses holding PAXG.
Notably, the destruction of tokenized commodities has significantly increased from October of last year to April of this year, which may be related to the consolidation of gold prices during that period and the rise of the cryptocurrency market. After April, the minting volume of tokenized commodities saw a slight increase, possibly triggered by the rise in gold prices.
According to TradingView data, gold prices have recently been setting historical highs, reaching $2,628 per ounce before this article was finalized, with a 27% increase this year.
RWA.xyz mentioned the developments in the field of tokenized precious metals on social media platforms. The company pointed out that global financial institutions, such as HSBC, are not only providing tokenized gold to retail customers but also supporting technological advancements, including the development of post-quantum cryptography suitable for tokenized gold. Furthermore, more experiments are underway in this field, with “gold NFTs and stablecoins backed by tokenized gold leading the trend.”
Related article: “Tether Launches New Asset Alloy by Tether Supported by Gold Token XAUt and Synthetic Dollar aUSDT”
