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2 Tokenized Gold Crypto Projects Saw Massive Growth Over the Last 15 Months

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Fifteen months ago, the price of one ounce of fine gold was $1,790 per ounce and has since risen in price by 3.51% to today’s exchange rate of $1,853 per ounce. While gold has risen in value, the top two tokenized gold coins have risen significantly since then. For example, the market capitalization of Pax gold (PAXG) has increased by 407% since February 26, 2021, while the market value of Tether XAUT has increased by 248% since that day. PAXG and XAUT currently have a combined market capitalization of just over $1 billion.

Pax Gold

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Today, there is just over $1 billion in tokenized gold coins between the two leading gold token blockchain projects. The first project with the largest market cap is pax gold (PAXG) with a $620 billion valuation. asset-backed coin called PAXG is an ERC20 token built on Ethereum and one PAXG is equal to one troy ounce (t oz) of London Good Delivery Gold (LBMA).

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PAXG released Paxos and owners can exchange PAXG “for good delivery LBMA accredited gold bars” with a minimum redemption amount of 1 ton ounce. Archive.org Statistics indicate that PAXG was the second largest tokenized gold coin at the end of February 2021 with a market capitalization of $122 million.

2 Tokenized Gold Crypto Projects Showed Significant Growth Over the Last 15 Months
The top two tokenized gold coins by market capitalization as of July 6, 2022.
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Today, PAXG ranks first in tokenized gold coins by market cap, and it has grown by 407% in the last 15 months. The price of gold has risen only 3.51% since that day from $1,790 to $1,853 per ton. This means that most of the growth in PAXG is due to the issuance of coins into circulation.

On February 26, 2021, PAXG’s valuation was just $122 billion, and on that day, 24-hour global trade was $16.9 million. Today’s PAXG valuation of $620 billion means $11 million in 24-hour global trade. The most popular PAXG trading pair is Tether (USDT) as the token covers 69% of all pax gold swaps.

2 Tokenized Gold Crypto Projects Showed Significant Growth Over the Last 15 Months

The tokenized gold coin issued by Paxos also passed 12.67% of all BUSD stablecoin and bitcoin trades (BTC) is the third most traded PAXG pair with 12.05% of all trades in the last 24 hours. Other notable PAXG couples include WETH (3.09%), BNB (1.21%), US dollars (1.08%) and euros (0.79%).

The top exchanges with the highest PAXG trading volume include Binance, Kucoin, Crypto.com, Binance USA, Gemini, Bybit, Bithumb Global, FTX, and Coinex. While PAXG is currently the largest tokenized gold coin by market valuation, XAUT Tether is not far behind.

Tether Gold

Everyone knows that Tether is issuing a stablecoin USDT and it is widely known that the stablecoin is the largest by market cap. However, few people know that Tether is issuing other asset-backed coins that hold the redemption value of multiple fiat currencies.

Tether also issues a token called tether gold (XAUT) and is currently the second largest tokenized gold coin by market capitalization. At the time of writing, XAUT has a total valuation of $458 million, with a global trade volume of $1.45 million in the last 24 hours. Tether XAUT Website states that one XAUT is equal to 1 tonne ounce, which is in line with LBMA standards.

2 Tokenized Gold Crypto Projects Showed Significant Growth Over the Last 15 Months

Tether says it offers “many redemption options” and notes that “XAUT holders can make a redemption request in the form of physical gold if the holders have completed the TG Commodities Limited verification process and have the required minimum amount of XAUT.”

On February 26, 2021, the market value of the Tether XAUT tokenized gold coin was about $131 million, and the 24-hour global trade volume that day was $1.6 million. Since then, XAUT’s market value has grown by 248% to its current market capitalization of $458 million.

PAXG and XAUT have a combined value of $1 billion

There are a few more asset backed tokens which use the value and collateral of precious metals held in vaults, but the market capitalization of PAXG and XAUT is gigantic compared to them. Together they are valued at just over $1 billion based on the number of coins issued and the current value of gold.

According to the data, there are 333,601 PAXG tokens and 246,524 XAUT tokens in circulation today. In terms of a total gold market valuation of $11.795 trillion, the market caps of PAXG and XAUT are minuscule by comparison. Among over 13,400 crypto-economic cryptocurrencies, the PAXG valuation ranks 86th, while the market cap of XAUT is 112th.

What do you think of the top gold tokens with a market value of just over $1 billion and the growth they have seen in 15 months? Let us know what you think about it in the comments section below.

Denial of responsibilityA: This article is for informational purposes only. This is not a direct offer or solicitation to buy or sell, nor is it a recommendation or endorsement of any products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is directly or indirectly liable for any damage or loss caused or alleged to be caused by the use of or reliance on any content, goods or services mentioned in this article.



Credit : news.bitcoin.com

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