Although stablecoin market values and reserve-backed crypto assets have increased significantly over the past year, market cap for gold-backed cryptocurrency has also increased. With $742 million in market value, today’s tokens tether and pax cryptos have market values close to a billion.
Tether Gold’s Market Cap Swells Over 19,000% in Less Than 2 Years, While Pax Gold Increased by More Than 15,000%
Tether gold (XAUT), which was valued at $2.1 million on February 21, 2020, saw its market value rise to $410,000,000 23 months later. Since March 24, 2020, or 672 days ago, pax gold (PAXG) has seen its market cap grow from $2.2 million to today’s $332.7 million. Over the past 22 months, PAXG’s market cap grew by 15,022%.
Both projects claim to be backed by one ounce of .999 fine gold which means XAUT’s vaults should hold 223,921 ounces of fine gold. PAXG’s reserves should be around 181,321 ounces of the precious metal.
The token’s backing is one troy ounce (or 1 oz) of London Good Delivery Gold Bar according to PAXG specs. Although both tokens with gold backing have experienced substantial market cap gains over the past 2 years, there is very little trade volume. XAUT’s trade volume on January 25 is $1.5 million while PAXG has $16.1 million in 24-hour trades.
Tether gold only has three major trading pairs which include tether (USDT) with 66.92% of all trades today, USD with 26.69%, and BTC with 6.39% of today’s XAUT swaps. According to data, Bitfinex is the most active XAUT trade exchange.
Pax gold has a lot more trading pairs with USDT capturing most of the PAXG swaps with 46.70% of today’s PAXG trades. BTC (20.27%) is next followed by USD (12.52%) and WETH (8.13%). EUR (7.9%) and ETH (3.222%). Binance is PAXG’s most active exchange followed by Kucoin and Crypto.com.
Comparitors are much smaller in PMGT or DGX Market Values
XAUT (and PAXG) are the only tokens that have market caps of more than $1 million. The gold-backed tokens perth min gold token (PMGT), and digix golden (DGX), both have market cap values above $1,000,000 each. PMGT currently has a market cap of $1.7million, and DGX $1.1million. PMGT trades settle in AUD via Independent Reserve. DGX swaps settle in the Indonesian rupiah, IDR via Indodax.
PMGT also has one troy ounce physical gold such as XAUT, PAXG and PAXG backing it. DGX tokens however are backed a gram LBMA gold (the London Bullion Market Association). The Digixdao team claims that the assets are kept in an in Singapore safe house.
PMGT, DGX and PAXG did not experience the growth that XAUT or PAXG experienced. On March 12, 2020, PMGT had a market valuation of $177,205 and since then it’s increased 859%. DGX was valued at $1.2 million by the market in May 2018. Today, the value is approximately the same.
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