- PAXG attracted $248 million in inflows in January as buyers shifted to tokenized gold.
- The market capitalization of tokenized gold reached $5.88 billion, with a 24-hour buying and selling quantity of $1.93 billion.
- XAUT and PAXG led the good points, reflecting rising demand for gold-backed digital property.
Tokenized gold recorded elevated investor inflows in January as crypto markets moved sideways and capital moved into blockchain-based gold property. Paxos Gold (PAXG) attracted over $248 million in new inflows through the month, marking the token’s finest month-to-month efficiency ever, in keeping with knowledge from DefiLlama. The surge in inflows comes as spot gold costs rose whereas Bitcoin and the broader crypto market underperformed.
PAXG is backed by bodily gold held in an LBMA-approved vault in London, with every token representing fractional possession of bodily bullion. January’s inflows coincided with a robust rally within the gold market, with costs above $5,500 an oz., up 22% by means of January and up greater than 90% over the previous 12 months.
On the similar time, Bitcoin has fallen greater than 10% year-on-year, with broader digital asset markets in decline and a divergence between cryptocurrency costs and conventional safe-haven property. This market construction has turned investor consideration to blockchain-based gold merchandise that mix digital transferability with bodily backing.
James Harris, CEO of crypto yield platform Tesseract Group, mentioned tokenized gold advantages from the elevated utility of blockchain infrastructure. He famous that whereas Bitcoin continues to commerce in keeping with a broader vary of threat property, options corresponding to transferability and divisibility have strengthened its function throughout instances of macro uncertainty.
Market knowledge exhibits rise in market capitalization and buying and selling exercise
The tokenized gold sector additionally recorded a rise in market capitalization and buying and selling quantity. The market capitalization elevated by 8.3% in 24 hours to achieve $5,882,166,573, and the 24-hour buying and selling quantity elevated to $1,929,268,125, indicating a rise in market contributors.
Tether Gold (XAUT) led the sector, rising 5.9% on the day to commerce at $5,576.84. Pax Gold (PAXG) adopted at $5,599.99, up 6.2% for the day. These property dominated each day buying and selling exercise between gold-backed digital tokens.
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