An ounce of pure gold was priced at $1,790 an ounce 15 months ago, and since then its value has risen 3.51% to $1,853 an ounce today. While gold has risen in value, the top two tokenized gold coins have grown significantly since then. For example, the market cap of Pax Gold (PAXG) has increased by 407% since February 26, 2021, and Tether’s XAUT market valuation has surged 248% since that day. Currently, the combined market capitalization of PAXG and XAUT is just over $1 billion.
Today, tokenized gold between the first two gold-token blockchain projects is just over $1 billion. The first project with the largest market capitalization is pax gold (PAXG), which is valued at $620 billion. The asset-backed token called PAXG is an ERC20 token built on Ethereum, and a single PAXG is equivalent to one troy ounce (t oz) of London Good Delivery Gold (LBMA).
PAXG is issued by Paxos, and owners can exchange PAXG for “LBMA-approved Good Delivery Gold Bars” with a minimum exchange volume of 1 ton ounce. Archive.org statistics show that as of February 2021, PAXG is the second largest tokenized gold coin with a market cap of $122 million.
Today, PAXG is the number one tokenized gold coin by market cap, with a 407% increase over the past 15 months. Since that day, gold prices have gained only 3.51%, from $1,790 a tonne to $1,853 a tonne. This means that most of the growth in PAXG comes from minting coins in circulation.
On February 26, 2021, PAXG was only valued at $122 billion, with a 24-hour global trade volume of $16.9 million that day. PAXG is valued at $620 billion today, with a global 24-hour trading volume of $11 million. The most popular trading pair for PAXG is Tether (USDT), as the token accounts for 69% of all pax gold swaps.
Tokenized gold coins issued by Paxos also traded 12.67% against the stablecoin BUSD, while Bitcoin (BTC) was the third most traded pair on PAXG in the past 24 hours, accounting for 12.05% of all trades. Other notable PAXG pairs include WETH (3.09%), BNB (1.21%), USD (1.08%) and EUR (0.79%).
Top exchanges with the highest trading volume on PAXG include Binance, Kucoin, Crypto.com, Binance USA, Gemini, Bybit, Bithumb Global, FTX and Coinex. While PAXG is now the most valuable tokenized gold coin in the market, Tether’s XAUT is not far behind.
As we all know, Tether issues the stable currency USDT, and as we all know, the stable currency is the largest by market value. However, it is not well known that Tether issues other asset-backed tokens that hold some fiat currency redemption value.
Tether also issues a token called Tether Gold (XAUT), which is currently the second-largest tokenized gold coin by market cap. At the time of writing, XAUT’s overall valuation is $458 million, and its global trade volume over the past 24 hours is $1.45 million. Tether’s XAUT website states that a single XAUT is equal to 1 ton ounce and is LBMA compliant.
Tether said it offers “multiple redemption options,” noting that “holders of XAUT can propose redemption in physical gold, as long as the holder completes TG Commodities Limited’s verification process and holds the required minimum amount of XAUT. ask.”
On February 26, 2021, the market value of Tether’s tokenized gold coin XAUT was approximately $131 million, with a 24-hour global trading volume of $1.6 million that day. Since then, XAUT’s market cap has grown by 248% to reach today’s $458 million market cap.
The combined value of PAXG and XAUT is $1 billion
There are also asset-backed tokens that leverage the value and backing of precious metals in vaults, but the market caps of PAXG and XAUT are huge by comparison. Based on the number of coins in issue and the current value of gold, the combined value of both of them is just over $1 billion.
According to the data, there are 333,601 PAXG tokens and 246,524 XAUT tokens in circulation today. In terms of gold’s overall market valuation of $11.795 trillion, the market caps of PAXG and XAUT pale in comparison. Among the 13,400+ cryptocurrencies in the cryptoeconomy, PAXG is ranked 86th by valuation, while XAUT is ranked 112th by market cap.
What do you think of the top gold coins with a market cap of just over $1 billion and their growth in 15 months? Let us know what you think about this topic in the comments section below.
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