What You Need to Know:
- The capitalization of gold-backed tokens soared to an unprecedented $1.4 billion in March, with Tether’s XAUT and Paxos’ PAXG spearheading the market, as per CoinDesk Data’s stablecoin report.
- Tether’s USDT increased to a market valuation of $144 billion, although its share in the market and trading volume has diminished.
- Regulatory modifications are affecting the euro-based stablecoin market, with Circle’s EURC stablecoin showing a nearly 30% growth to a market cap of $157 million.
The latest report illustrates that the tokenized gold market reached new heights, hitting $1.4 billion in market capitalization with trading activities peaking, which aligns with the surge of physical gold above $3,000 per ounce. This situation has positioned Tether’s gold-backed token (XAUT) and Paxos’ PAXG as leaders, boasting market caps of $749 million and $653 million, respectively.
March recorded trading volumes exceeding $1.6 billion for these gold tokens, marking the highest in over a year. Meanwhile, the overarching stablecoin market, which includes tokens linked to fiat and commodities, grew to above $231 billion this month, marking an 18-month continuous rise. Despite an increase to a record supply of $144 billion for Tether’s USDT, its market share has declined to the lowest since March 2023 at 62.1% due to heightened competition in the sector. Circle’s USDC also grew by 7%, nearing a valuation of $60 billion.
