The digitalized gold sector has recorded a trading volume of 178 billion dollars during the last fiscal year. According to a report by CEX.io, the rise of criptocurrencies backed by physical bullion has allowed these assets to surpass almost all traditional exchange-traded funds in activity. This milestone occurs while the price of the precious metal is heading strongly toward the 5,000 dollar mark.
During the last quarter of 2025, the market experienced an unprecedented acceleration, generating 126 billion dollars in global transactions alone lately. These assets, such as Tether Gold and Paxos Gold, have captured the interest of investors seeking refuge from geopolitical tensions. Thus, if tokenized gold were an ETF, it would rank second by global trading volume.
Despite this explosive growth, the sector’s total market value barely reaches 4.4 billion dollars at this moment. However, it represents a 177% increase compared to previous periods, consolidating a trend of massive adoption among retail investors. Tether’s XAUT dominance is evident, accounting for 75% of the total volume recently traded on the main platforms.
Financial inclusion and democratization of access to the gold market
The relevance of this fact lies in the removal of entry barriers for small international investors. Unlike traditional financial products, these tokens allow for fractional ownership and do not require an obligatory minimum investment to participate. This flexibility solves access problems in emerging markets, where gold-linked products are traditionally quite difficult to acquire or manage.
This milestone represents an evolution in how capital rotates toward defensive assets in the face of tariff risks. By integrating the value of the metal with the agility of criptocurrencies, an efficient and global investment vehicle has been created. Therefore, investors are using these tools to effectively protect their wealth against current economic volatility in a safe way.
Furthermore, the technological infrastructure allows digital gold to be traded twenty-four hours a day without interruptions. This background suggests that tokenization is modernizing a market that, although giant, lacked the immediate liquidity offered by digital assets before. As a result, the gap between traditional finance and blockchain technology is closing very rapidly.
What factors will drive the metal’s price toward 5,000 dollars?
With the price of gold reaching 4,750 dollars this Tuesday, analysts are projecting an imminent bullish scenario. Gracy Chen, CEO of Bitget, has noted that the rotation of capital toward defensive assets is inevitable now. With tariffs returning to the international debate, the precious metal dominates the preferences of large funds and global investment entities.
On the other hand, the capitalization of this sector remains miniscule compared to the 32 trillion total gold market. However, the growth potential is massive if the trend of digitalizing physical assets continues to expand. It is expected that, if current geopolitical conditions hold, the 5,000 dollar target will be reached soon by the metal.
Ultimately, the convergence between physical and digital assets is redefining modern financial hedging strategies globally. As long as trading volume continues to outperform traditional ETFs, confidence in these products will continue to increase gradually. Investors now look toward the future, hoping that the stability of gold strengthens the decentralized financial ecosystem in the coming months.
