Crypto Investors Bet on Tokenized Commodities as Gold Silver Hit ATH

Blockchain-based tokenized commodities are on the verge of reaching a significant milestone of $4 billion, which is driven by an unprecedented surge in precious metals like gold, silver, and platinum. As the price of gold is hitting new all-time highs, the tokenized commodities also follow the same pattern of impressive growth in the sector. By Friday, spot gold was up to an impressive $4,530 per ounce, a figure that has pushed the value of tokenized commodities to new heights, reaching almost $4 billion.

Gold Hits New All-Time Highs

The surge in the gold price has been the catalyst behind the expansion of tokenized commodities. Gold hit a record high of $4,530 per ounce on Friday due to investor confidence in the precious metal. This has expanded to the tokenized form of gold called Tether Gold (XAUt), now worth $1.74 billion and the largest tokenized commodity. Following closely behind is Paxos Gold (PAXG) with a valuation of $1.61 billion.

Other than gold, silver has also seen remarkable growth, briefly reaching an all-time record of $74.56 per ounce. Nevertheless, silver is not a significant player in the tokenized commodities market at present, and gold still dominates the industry.

Tokenized Commodities Market Reaches $3.93 Billion

As of recent data from RWA.xyz, the value of the tokenized commodities has increased by 11% over the last month to a total of 3.93 billion. The move is a major milestone in the industry, which is considered to be a subset of the larger real-world asset (RWA) market. The concept of tokenized commodities is emerging as a key component of the digital asset ecosystem, providing a mechanism to buy and sell precious metals and other commodities beyond regular market time, while still remaining tied to the legacy infrastructure for pricing, liquidity, and redemption.

Ethereum Dominates Tokenized RWA Growth

Ethereum remains the largest blockchain network of tokenized RWAs with 65% market share and 12.7 billion tokenized assets. The fact that Ethereum is successful in this area is fueling the general increase in blockchain usage as more investors desire quicker settlement and fractionalized ownership of real-world assets. BNB Chain has the second position with 10.5% market share and with tokenized assets of $1.85 billion.

Future Projections for Tokenized Commodities 

Looking ahead, Standard Chartered has projected that the tokenized RWA market could surge to $2 trillion by 2028, and much of the expansion would be driven by the more illiquid investments, including the private equity market and the commodities market. Such growth will lead to an increase in interest in tokenized commodities, which will become an essential element of the digital asset economy.

Final Thoughts: 

The rise of tokenized commodities is reshaping the way precious metals like gold, silver, and platinum are traded and owned. With the assets worth close to 4 billion dollars, the possibilities of future expansion are enormous. As Ethereum leads the charge in tokenized real-world assets, and more investors seek an alternative to traditional financial systems, the future of tokenized commodities is bright. Such a trend may be instrumental in growing the blockchain ecosystem and introducing additional assets to the on-chain world in the future.

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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile and risky. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions.