The demand for tokenised precious metals is increasing due to their easy acquisition compared to traditional ones. People who invest desire safe-haven assets that are always there.
As investors hunt for safe locations to store their money on crypto-native platforms that are available all the time, not just during conventional market hours, there is growing demand for tokenised commodities.
According to RWA.xyz, a data aggregator, the tokenised commodities sector grew by 10% in the last month, increasing its overall market value to $7.69 billion. The number of holders likewise went up by 5.8%, reaching 189,390.
Most of the on-chain commodities are Tether Gold XAUT ($5,134.58), which is worth $2.96 billion. With $2.56 billion, Paxos Gold (PAXG) at $5,176.74 is in second place.
Source: RWA.xyz
Real-world assets are getting more popular in crypto
The surge suggests that real-world assets are becoming a bigger part of the digital economy. Tokenised commodities let investors access assets on the blockchain at any time, like gold and silver. Digital asset infrastructure makes it possible to move and trade them as well.
More traders who want to enter traditional assets, such as stocks and commodities, via derivatives are also interested in crypto exchanges.
CryptoQuant, a blockchain analytics tool, says that this trend is especially obvious when prices change a lot, like when gold and silver prices went up recently. Activity has gone up when the price of precious metals has gone up quickly, said Julio Moreno, CryptoQuant’s head of research, in a report that came out on Tuesday.
He also added that gold and silver contracts made up most of the daily volume, with gold contracts reaching $3.77 billion and silver futures reaching $3.75 billion on Tuesday.
Binance’s TradFi perpetuals are growing quickly
There has been a lot of growth in the trade of those products. CryptoQuant said that since Binance’s TradFi permanent futures started trading in January, they have had over $130 billion in total trading activity and about 90 million deals.
CryptoQuant argued that the rise in demand for tokenised commodities and precious metals was due to worries about tariffs and higher interest rates, as well as a greater need for safe havens.