The market capitalization of stablecoins, the rate of which is pegged to the price of gold, has exceeded $1 billion. The price of tokens is growing following the value of the underlying asset, writes RBC Crypto.
May futures for gold on Tuesday, April 4, grew up on the New York Mercantile Exchange (COMEX) by 1.91%, to $2029.4 per ounce. This is the highest since March 2022. On Wednesday, April 5, the price of gold continued to rise. At the moment, its price on COMEX increased by 0.12% to $2032 per ounce.
The historical maximum price for gold – $2088 per ounce under the standard COMEX futures contract – was recorded on March 9, 2022.
According to experts, the demand for gold increased against the backdrop of a weakening dollar in the international market and investors’ uncertainty about the “bright prospects” for the global economy.
The two largest gold stablecoins are PAX Gold (PAXG) from US fintech company Paxos Trust and Tether Gold (XAUT) from Tether. According to CoinGecko, at 17:00 Moscow time on April 5, the market capitalization of PAXG rose to $523 million, XAUT – to $499 million. On April 4, these figures were at $509 million and $488 million, respectively.
During the day, the cost of PAXG increased by 2%, to $2035.50, and the XAUT rate rose by 2.1%, to $2033.46. Over the past 30 days, Tether Gold has risen in price by 9.2%, PAX Gold – by 10.4%.
The correlation of bitcoin with gold at the end of March reached a multi-year high, according to data analytical platform Kaiko. It amounted to 50% and surpassed the correlation of BTC with US stocks. The asset, which is often referred to as “digital gold”, on March 30 updated its maximum since June 2022, exceeding the $29 thousand mark.
Source: Cryptocurrency
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