Gold’s Safe-Haven Rally Spills Into Crypto Markets: Here’s How
Rising geopolitical tensions are driving a safe-haven rally in gold, which is now spilling over into tokenized gold assets in crypto markets.Summary
Physical gold prices surged to a one-month high, reaching $5,394 per ounce, driven by safe-haven demand following US and Israeli strikes on Iran. This rally is extending into digital markets, evidenced by a surge in the accumulation of tokenized gold assets like PAX Gold (PAXG) and Tether Gold (XAUT).
On-chain data highlights significant activity, including one inactive wallet spending $1 million USDC to acquire PAXG and XAUT, and an Ethereum whale swapping $1.94 million worth of ETH for XAUT despite realizing a loss. Furthermore, asset manager Abraxas Capital Management received $151 million worth of XAUT tokens from Tether's treasury.
Investors appear to favor gold-backed tokens as an alternative store of value, offering stability linked to precious metals while avoiding some traditional finance risks. The tokenized gold sector's market cap now exceeds $6 billion, with daily trading volumes for XAUT and PAXG surpassing $1 billion, indicating strong current demand.
(Source：BeInCrypto)