Tokenized Gold Hits Record $1.4B Market Cap as Trading Volumes Soar in March

The marketplace capitalization of tokenized golden climbed to a grounds $1.4 cardinal successful March with trading volumes soaring to yearly highs, CoinDesk Data's monthly stablecoin study shows.

The maturation successful marketplace worth and enactment happened alongside the carnal yellowish metal's rally to caller all-time highs supra $3,000 per ounce. Tether's gold-backed token (XAUT) and Paxos' PAXG predominate among the offerings, with marketplace capitalizations of $749 cardinal and $653 million, respectively.

The trading measurement with golden tokens surpassed $1.6 cardinal done the month, the highest level successful much than a year, according to the report.

The wide stablecoin market, which includes tokens with prices pegged to fiat currencies and commodities, climbed supra $231 cardinal marketplace headdress this month, increasing for the 18th consecutive month, the study said.

Tether's USDT, the largest stablecoin connected the market, besides accrued to a grounds proviso of $144 billion. However, its marketplace stock dropped to the lowest level (62.1%) since March 2023 arsenic the stablecoin scenery is getting progressively competitive. Circle's USDC, the second-largest stablecoin, grew 7% successful a period to adjacent $60 billion.

Decentralized concern protocol Ethena's precocious launched dollar stablecoin USDtb, which uses BlackRock's tokenized wealth marketplace money BUIDL arsenic a reserve asset, rapidly gobbled up implicit $1 cardinal of assets to go the 8th largest by marketplace cap.

In presumption of trading volumes connected centralized exchanges, USDT's dominance somewhat declined, but inactive stood supra contention astatine 75.7% done the period among the apical 10 stablecoins. Meanwhile, USDC and Hong Kong-based First Digital's FDUSD saw their trading marketplace headdress dominance emergence to 13.6% and 10%, respectively.

Regulatory shifts person been reshaping the marketplace of euro-denominated stablecoins, arsenic exchanges moved to comply with the Markets successful Crypto-Assets (MiCA) framework. Kraken delisted USDT and different non-compliant stablecoins for European users, pursuing the footsteps of different exchanges specified arsenic Coinbase and Crypto.com.

Circle's EURC stablecoin was a notable beneficiary of the developments, increasing astir 30% to $157 cardinal marketplace headdress and claiming a 45% marketplace stock of each euro stablecoins.