As the price of gold is on the cusp of breaking its April peak, the market size of crypto tokens backed by the precious metal has already surged to fresh all-time highs.

The overall market capitalization of tokenized gold topped $2.57 billion, CoinGecko data shows, as the two leading offerings, Tether’s XAUT and Paxos’ PAXG tokens, saw sizable inflows recently. Both tokens’s are designed to track the price of gold and are backed by physical bars held in vaults.

XAUT (XAUT), issued by the firm that’s behind the USDT stablecoin, saw a $437 million jump in its supply to a record $1.3 billion, per CoinGecko. Tether’s Treasury minted 129,000 tokens in early August on the Ethereum network, blockchain data by Etherscan shows.

PAXG (PAXG), the gold-backed token of U.S.-based stablecoin firm Paxos, swelled to a record market size of $983 million, DefiLlama data shows. That’s been fueled by $141.5 million net inflows into the token since June.

Gold currently traded at around $3,470, just shy of the April 22 peak hit amidst the tariff tantrum.

The precious metal, which is widely considered as a safe haven asset during times of uncertainty, has been resurging lately, driven by a steepening U.S. Treasury yield curve.

Read more: Gold’s Rally Has a Big Catalyst, and It Could Help Bitcoin Too

The issuer of the largest stablecoin by market cap just acquired significant holdings with a gold-focused royalty company listed in Canada.

In a statement, Elemental Altus says that Tether just completed the purchase of 78,421,780 common shares at a price of C$1.55, or around $1.14 per share, for a total of C$125,553,759, or about $89 million.

The acquisition represents approximately 31.9% of the precious metals royalty firm’s issued and outstanding common shares.

Tether already owns 4,360,511 shares in Elemental Altus, which brings the USDT issuer’s aggregate common shares holdings to 82,782,291. This represents approximately 33.7% of the Canadian firm’s issued and outstanding shares.

Elemental Altus CEO and director Frederick Bell says Tether is now one of the company’s leading investors.

“Building on previous discussions with Tether, we are very pleased to officially welcome Tether as the Company’s new major shareholder. Their unmatched ability to support the company in its next phase of growth is exciting for all shareholders and is a positive for the gold royalty sector.”

In a separate statement, Tether CEO Paolo Ardoino says the investment reflects the company’s confidence in gold and its role in financial markets.

“Elemental’s royalty model provides diversified exposure to gold production around the world, aligning strategically with our vision for Tether Gold and future commodity-backed digital asset infrastructure.”

Follow us on X, Facebook and Telegram

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Surf The Daily Hodl Mix

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/cosmoman

A closely followed analyst believes that gold’s bull market has entered a stage where the precious metal could go higher for longer.

Pseudonymous analyst Dave the Wave tells his 149,500 followers on the social media platform X that gold is at a point in its parabolic rally where the precious metal could easily print 2x gains.

The trader shares a chart suggesting that gold’s parabolic surge began in 2016 and could extend up to 2028 to hit a massive price target of $7,500.

“Gold entering its parabolic blow-off stage…” 

At time of writing, gold is worth $3,341.

Turning to Bitcoin, the analyst thinks that BTC is following in the bullish footsteps of gold after the crypto king took out resistance at $90,000.

“BTC is showing strength in uncertain markets due to its function as digital gold, in my opinion.”

At time of writing, Bitcoin is trading for $93,559, up over 7% in the last 24 hours.

Other market analysts are also bullish on gold and Bitcoin. Adam Kobeissi, the founder and editor-in-chief of The Kobeissi Letter, says that both BTC and gold are surging higher as market participants rush to seek shelter in safe-haven assets.

“Gold and Bitcoin are now aligning for the first time in months.

Since April 7th, Gold is up over 15% while Bitcoin is up over 12%.

Why is this happening?

Markets are pricing-in US Dollar weakness and more instability.

Bonds are no longer a preferred safe haven.” 

Follow us on X, Facebook and Telegram

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Surf The Daily Hodl Mix

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: DALLE3