Tokenized gold strengthens as Bitcoin falls below $90,000

Source: Criptonoticias Original Title: Tokenized gold shines in a bleeding market Original Link: https://www.criptonoticias.com/mercados/oro-tokenizado-brilla-mercado-sangra-xaut-paxg/

Gold-backed stablecoins withstand market downturn

Gold-backed stablecoins resist the overall decline of the bitcoin (BTC) and cryptocurrency markets.

Evidence of this is that, at the time of publication, two of the three digital assets with the highest weekly gains are stablecoins backed by the precious metal.

These are Tether Gold (XAUT) and PAX Gold (PAXG), two tokenized representations of gold on blockchain networks, which have recorded weekly market gains exceeding 5%.

The segment of stablecoins backed by precious metals is largely dominated by XAUT, issued by Tether, and PAXG, from Paxos, which hold the majority of the market capitalization.

XAUT leads with a valuation close to $2.138 billion, while PAXG follows closely, with a market cap around $1.890 billion.

Gold trades at all-time highs

This behavior is explained because gold is trading at historic levels. At the time of publication, the ounce of the precious metal is trading above $4,800:

Geopolitical uncertainty drives demand

The recent rise of tokenized gold representations occurs amid uncertainty in financial markets, marked by geopolitical tensions and a possible trade war between the United States and the European Union over Greenland.

Tariffs announced by U.S. authorities on several European countries rekindled fears, causing bitcoin (BTC) to fall below $90,000 and dragging the rest of the market down.

This scenario reinforces the appeal of tokenized assets linked to gold as a safe haven in times of economic uncertainty.

It is then that stablecoins backed by the world’s most valuable asset gain prominence for their liquidity, divisibility, and ease of use, characteristics that make them an efficient alternative to traditional physical gold.