Gold-Backed Tokens and Stablecoins Surge as Demand Rises

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In March, the tokenized gold market reached a market value of $1.4 billion, with trading volumes hitting annual highs. The price of physical gold surpassed $3,000 per ounce, supporting the market’s upward momentum. The gold-backed token XAUT from Tether achieved a market value of $749 million, while Paxos’ PAXG token reached $653 million.

Increase in Gold Tokens

The rise in tokenized gold products correlates with the appreciation of physical gold. The report indicates that the total trading volume of gold tokens exceeded $1.6 billion in March. These developments suggest a growing interest in alternative investment vehicles.

Recent Trends in Stablecoins

The stablecoin market surpassed a market value of $231 billion, continuing its upward trend for 18 months. Tether’s USDT token traded at a record supply level of $144 billion, while cryptocurrencies experienced new lows in March. Circle’s USDC token approached $60 billion with a monthly growth of 7%.

Ethena’s newly launched stablecoin, USDtb, utilizes BlackRock’s tokenized money market fund BUIDL as a reserve asset. This product quickly ranked 8th in the market with a reserve value exceeding $1 billion. While USDT’s dominance in centralized exchanges slightly declined, USDC and Hong Kong-based First Digital’s FDUSD recorded increases.

In the European market, ongoing efforts to comply with crypto asset regulations saw exchanges like Kraken, Coinbase, and Cryptocom delist USDT, a non-compliant stablecoin. Circle’s euro-indexed stablecoin EURC experienced a 30% increase, achieving a market value of $157 million and capturing a 45% share among euro-based stablecoins.

The data presented in the report reveal varying trends across different market segments. The growth observed in both tokenized gold and stablecoin markets may indicate an increased interest in alternative solutions among investors.

Market data illustrate how rising trading volumes and an expanding product range are shaping competition within the sector. Alongside regulatory developments, there is a noticeable increase in interest and diversity regarding the products available in the market. These insights may provide investors with valuable information to understand the market better.

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