The market for tokenized gold has been quite active recently. In just a few months, the total market capitalization of gold-backed stablecoins has surged from $1.3 billion at the beginning of the year to over $4 billion—an almost threefold increase, which is indeed quite rapid.

The market landscape is primarily dominated by two players. Tether Gold (XAUt) holds about $2.2 billion in market cap, maintaining the top spot and accounting for nearly 50% of the market share. Following closely is Paxos Gold (PAXG), with a market cap of around $1.5 billion. Together, these two almost monopolize the entire tokenized gold sector, with a combined share approaching 90%.

The driving force behind this is quite straightforward—gold itself is on the rise. Since the beginning of the year, gold prices have increased by approximately 66%. Against this backdrop, the logic of tokenizing gold on the blockchain becomes particularly attractive: investors can participate in the gains from rising gold prices while enjoying the liquidity benefits of blockchain, making it a very appealing option.