The tokenized commodities market has surged 53% in less than six weeks, reaching a valuation of over $6.1 billion, according to analytics from Token Terminal. This marks the fastest growth within the real-world asset tokenization sector, driven primarily by onchain gold products. The market’s value was approximately $4 billion at the start of the year, adding roughly $2 billion since January 1.
The tokenized commodities market has grown 53% in under six weeks to exceed $6.1 billion. This growth outpaces other tokenization verticals, according to data from the crypto analytics platform.
Gold-backed tokens dominate this market sector. Tether‘s Tether Gold (XAUt) saw its market cap rise 51.6% to $3.6 billion, while Paxos‘s PAX Gold (PAXG) increased 33.2% to $2.3 billion.
Tokenized commodities have risen 360% year-on-year, outpacing tokenized stocks and funds. The market is now about one-third the size of the $17.2 billion tokenized funds market.
Tether expanded its strategy by acquiring a $150 million stake in precious metals platform Gold.com. The company stated its XAUt token would be integrated and it is exploring purchases of physical gold with its USDT stablecoin.
The rally in tokenized gold coincides with gold’s spot price rallying over 80% in a year. It reached a new all-time high of $5,600 on Jan. 29 before settling around $5,050.
Meanwhile, Bitcoin has declined significantly from its October high of $126,080. It fell to around $60,000 last Friday but has since rebounded to approximately $69,050, data shows.
This divergence has led to industry commentary. Strike CEO Jack Mallers speculated Bitcoin is still treated like a software stock.
Crypto asset manager Grayscale similarly stated Bitcoin’s “digital gold” narrative is being tested. It noted Bitcoin’s recent price action resembles a high-risk growth asset rather than a traditional safe-haven.
