From the end of 2024, as gold rose by more than 27% against the US dollar, interest in tokenized gold coins has exploded, and the number of holders of major digital gold Tokens has surged from 38% to a maximum of 172% since the end of last year.
According to Bitcoin.com News on the 6th, Tether and Paxos dominate the digital gold market with an 85% market share. Data shows that Tether's gold-backed Token XAUT currently has a market capitalization of $822 million, while Paxos' PAXG is slightly higher at $934 million. These two giants together dominate the $2.05 billion tokenized gold market, accounting for 85.61% of the entire sector. As gold surged this year, interest and trading in these two precious metal-linked cryptocurrency Tokens skyrocketed like a rocket.
In context, each PAXG Token issued by Paxos is primarily linked to one ounce of London Good Delivery gold, fully backed by physical gold bars safely stored and custodied in professional vaults in London. Similarly, each XAUT Token issued by Tether reflects ownership of one troy ounce of actual gold safely stored in Swiss vaults. In December 2024, there were 35,193 unique wallets holding PAXG.
To date, this number has increased by 38.56% to 48,763 wallets, representing an increase of 13,570 new holders. While Tether's XAUT lags in total wallet numbers, it leads in growth rate. According to Etherscan data in December 2024, there were 3,104 wallets holding XAUT. Currently, this number has explosively increased to 8,466 unique addresses.
This represents a 172% surge in XAUT wallet numbers since December 2024. As wallet growth accelerates and valuation rises, tokenized gold is clearly attracting investor interest and expanding beyond its niche audience.
The increasing dominance of PAXG and XAUT shows the market's tilt towards trusted issuers. This increased adoption points to genuine trust in digital gold as a modern store of value that combines the stability of precious metals with the efficiency of blockchain. Future momentum appears to depend on the gold price trajectory and broader cryptocurrency adoption.
Real-time news...Go to Token Post Telegram
<Copyright โ TokenPost, unauthorized reproduction and redistribution prohibited>
