Nearly 500,000 Gold-Backed Tokens in Circulation, Yet 20 Wallets Dominate the Supply
The demand for gold-backed crypto assets has been on the rise, with PAXG and XAUT leading the way. Here’s the breakdown:
- PAXG and XAUT dominate the field of precious metal-based digital currencies
- Market value of PAXG soared from $424 million to $611 million
- Tether gold market capitalization grew from $430 million to $486 million
- Combined market capitalization of PAXG and XAUT was $1.09 billion
- Current market capitalization of PAXG is $490 million and XAUT is $487 million
When it comes to holders and wallets, here’s what you need to know:
- Approximately 31,000 holders of PAXG and XAUT combined
- Top ten addresses for XAUT control 98.23% of the total supply
- Top ten addresses for PAXG account for 34.13% of the entire supply
- Largest wallet for tether gold contains 93,500 XAUT
- Binance holds the largest wallet for PAXG with 20,000 tokens
Gold-Backed Coins Witness Minimal transfers
While the availability of these gold tokens in the open market is challenging to determine, transfer activity is relatively low. Here are the details:
- XAUT has only witnessed 13,654 transfers since its creation
- PAXG has seen 846,887 transfers since its inception
- However, compared to Ethereum and Bitcoin, PAXG’s transfer activity is relatively minor
Hot Take
The dominance of a few wallets in the gold-backed token market raises concerns about decentralization and control. On the bright side, the demand for these tokens indicates a growing interest in using cryptocurrencies backed by real-world assets like gold. However, the minimal transfer activity suggests that these tokens are primarily held as investments rather than being actively used for transactions.
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