- PAXG drew $248M inflows in January as investors shifted toward tokenized gold.
- Tokenized gold market cap hit $5.88B, with $1.93B in 24h trading volume.
- XAUT and PAXG led gains, reflecting rising demand for gold-backed digital assets.
Tokenized gold recorded a rise in investor inflows in January as crypto markets moved sideways and capital rotated into blockchain-based gold assets. Paxos Gold (PAXG) attracted more than $248 million in fresh inflows during the month, according to DefiLlama data, marking the token’s strongest monthly performance on record. The inflow surge occurred as physical gold prices rallied, while Bitcoin and the broader crypto market underperformed.
PAXG is backed by physical gold stored in LBMA-approved vaults in London, with each token representing fractional ownership of physical bullion. The January inflows coincided with a strong rally in the gold market, with prices crossing $5,500 per ounce, rising 22% through January, and gaining more than 90% over the past year.
At the same time, Bitcoin fell by more than 10% year-on-year, while broader digital asset markets declined, creating a divergence between crypto prices and traditional safe-haven assets. This market structure redirected investor attention toward blockchain-based gold instruments that combine digital transferability with physical backing.
James Harris, CEO of crypto yield platform Tesseract Group, said tokenized gold has benefited from improved utility through blockchain infrastructure. He noted that features such as transferability and divisibility have strengthened its role during periods of macro uncertainty, while Bitcoin has continued to trade in line with broader risk assets.
Market Data Shows Rising Capitalization and Trading Activity
The tokenized gold sector also recorded growth in market capitalization and trading volume. Total market capitalization reached $5,882,166,573, reflecting an 8.3% increase in 24 hours, while 24-hour trading volume climbed to $1,929,268,125, signaling elevated market participation.
Tether Gold (XAUT) led the sector, trading at $5,576.84, up 5.9% on the day. PAX Gold (PAXG) followed at $5,599.99, with a 6.2% daily gain. These assets dominated daily trading activity among gold-backed digital tokens.
Related: Is PAX Gold Set for New Highs? Token Breaks $3,440 as Safe-Haven Demand Spikes
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