2 Gold-Backed Crypto Asset Market Caps Near $1 Billion, XAUT Jumps 19,000% in 23 Months – Altcoins Bitcoin News

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%.

Daily chart of XAUT/USD at Bitfinex, January 25, 2022.

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.

Daily chart: PAXG/USD Kraken on January 25, 20,22.

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.

In this story, tags
.999 Fine Gold, 1 gram, 1 ounce, 23 Months. AUD, DGX. digix gold. gold token growth. gold tokens. gold-backed. IDR. independent reserve. Indodax. LBMA. Pax. PAXG. perth mint. gold token. PMGT. Tether.

How do you feel about the rise of gold-backed tokens PAXG and XAUT? Comment below and let us know how you feel about the subject.

Jamie Redman

Jamie Redman, a Florida-based financial journalist and news lead at Bitcoin.com News is Jamie Redman. Redman is an active participant in the cryptocurrency community from 2011. Redman is passionate about Bitcoin and open-source codes. Redman is a prolific writer for Bitcoin.com News, with over 5,000 articles on disruptive protocols.

Image creditShutterstock. Pixabay. Wiki Commons. Tradingveiw.

DisclaimerThis information is provided for educational purposes only. This article is not intended to be a solicitation or offer to sell or buy any product, service, or company. Bitcoin.com is not a provider of investment, tax, legal or accounting advice. This article does not contain any information, products, or advice that can be used to cause or alleged result in any kind of damage.

Get more Crypto News at CFX Magazine