"The interest in gold-backed stablecoins is on the rise, with inflows accelerating after the aggression on Ukraine started. Following the surge in adoption, the combined market capitalization of the two dominant tokens – pax gold (PAXG) and tether gold (XAUT) – for the first time crossed the USD 1bn mark last week."
"The moves in the gold market have affected demand for gold-backed digital tokens, crypto researcher Coin Metrics wrote in a report this week that adoption of Paxos’ gold token, PAXG, has been on the rise."“As market activity in gold has increased in recent weeks, PAXG adoption on Ethereum has been rising,” Coin Metrics said."
"With the growth seen in the market capitalization of the PAXG token, Coin Metrics showed – not surprisingly – that the token has been the stablecoin with the strongest supply growth year-to-date (YTD)."
“Bitcoin has underperformed in this uncertain microclimate, but many investors still view it as an inflation hedge. Gold tokens can be helpful tools since they allow crypto investors to diversify inflation bets through familiar crypto market infrastructure,” the firm commented.
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