Gold-backed tokens are growing faster than the overall crypto market
Commodity-backed tokens are growing in popularity. So far, primarily gold-backed tokens have attracted investment, but other commodities may soon follow.
Feb 7th 2022
Source: CoinGecko
Just like stablecoins track the price of a currency, commodity-backed tokens follow the price of a commodity. The physical commodity should fully back them to track the price.
So far, the only commodity-backed tokens gaining traction are the gold tokens Tether Gold (XAUT) and PAX Gold (PAXG). XAUT has a market cap of $409M, while PAXG has a market cap of $358M.