Gold-backed cryptocurrencies have surged amid a remarkable rally in gold prices, which have risen nearly 10% this year to a record $2,880 per ounce due to escalating trade tensions. Tokens like PAX gold (PAXG) and Tether gold (XAUT) have closely tracked this rise, each increasing about 10%, as they are backed by one troy ounce of gold stored in a vault. Consequently, transfer volumes for these tokens have risen over 53.7% month on month. Meanwhile, gold miner stocks have also seen gains, with the VanEck Gold Miners ETF up nearly 20% this year, outperforming the S&P 500. In contrast, most leading cryptocurrencies have struggled, with Bitcoin experiencing a modest rise of 3.6% and Ether declining more than 17.6%. Analysts suggest that while gold currently dominates as a safe haven, cryptocurrencies like Bitcoin may rebound significantly once market conditions stabilize. Investors remain optimistic about Bitcoin's potential as a hard asset, especially with anticipated favorable policy shifts in the crypto landscape.

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