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While the market valuations of reserve-backed cryptoassets and stablecoins have increased substantially over the past year, the market cap of gold-backed cryptocurrencies has also ballooned. Between the tokens Tether Gold and pax Gold, the market valuation of the two gold cryptocurrencies is close to $1 billion, and today is $742 million.
Tether Gold’s market cap has surged over 19,000% in less than 2 years, while Pax Gold has grown over 15,000%
On February 21, 2020, the market was valued at Tether Gold (XAUT) At $2.1 million, 23 months later, the valuation is up 19,423% to $410 million. Since March 24, 2020 or 672 days ago, Gold (PAXG) Its market cap has grown from $2.2 million to $332.7 million today. The gold-backed crypto token PAXG has gained around 15,022% over the past 22 months.
Both projects claim to be backed by 1 ounce of 0.999 pure gold, which means that XAUT’s vault should hold 223,921 ounces of pure gold. PAXG’s gold reserves should be around 181,321 ounces.
According to PAXG specifications, the token is backed by one ounce of high-quality London Good Delivery gold bars. While both gold-backed tokens have seen significant growth in market capitalization over the past two years, trading volumes have been minimal. XAUT’s January 25 trading volume was $1.5 million, while PAXG’s 24-hour volume was $16.1 million.
Tether Gold has only three major trading pairs, including Tether (USDT) accounted for 66.92% of all transactions today, USD accounted for 26.69%, and bitcoin 6.39% of today’s XAUT swaps. The data shows that Bitfinex and FTX are the most active XAUT exchanges.
Pax Gold has more trading pairs USDT Capture the majority of PAXG swaps at 46.70% of today’s PAXG trades.followed by bitcoin (20.27%), USD (12.52%), WETH (8.13%), EUR (7.19%) and Ethereum (3.22%). Binance is the most active exchange for PAXG, followed by Kucoin and Crypto.com.
PMGT and DGX market valuations are much lower than competitors
Gold-backed tokens other than XAUT and PAXG Perth Mint Gold Coins (PMGT) and Digital Gold (DGX) Both have market caps in excess of $1 million. PMGT has a market cap of $1.7 million, while DGX has a market cap of $1.1 million today. 100% of PMGT trades are settled in Australian dollars through Segregated Reserves, while most DGX swaps are settled in Indonesian Rupiah (IDR) through the exchange Indodax.
While PMGT is also backed by one troy ounce of physical gold such as XAUT and PAXG, DGX tokens are backed by one gram of LBMA (London Bullion Market Association) gold. According to the Digixdao team, the assets are held in a safe house located in Singapore.
PMGT and DGX did not see the growth of XAUT and PAXG. On March 12, 2020, PMGT was valued at the market at $177,205 and has since risen 859%. DGX was valued at $1.2 million in the market in May 2018, and today is roughly the same.
What do you think of the growth of the gold-backed tokens XAUT and PAXG? Let us know what you think about this topic in the comments section below.
Image Source: Shutterstock, Pixabay, Wiki Commons, Tradingveiw,
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