Tether Gold (XAUT) recently hit a market capitalization of $507 million. In just one month, this is an increase of about 18%. Surprisingly, the XAUT exchange rate only increased by 1.4 percent within the same time period.
In 2022, the market capitalization of Tether Gold has increased by more than twofold. The first one took place in early January, while the second one took place in early February. It has now surpassed all previous records.
The coin’s market capitalization in 2021 was a little over $ 300 million, and it is now about $ 500 million.
On the other hand, Gold-backed cryptocurrencies have become a popular choice for investors looking to avoid market volatility. Indeed, according to Arcane Research, the market value of such tokens has surged by 60% in just three months, surpassing the $1 billion barriers for the first time in history.
Gold is seen as a safe investment, particularly when the financial markets are strained. It has a relatively stable supply, and its price is unaffected by inflation. This year, gold has risen 5.2 percent, from $1,827 to $1,922 per troy ounce.
Tether Gold has been added as collateral to Bitfinex Borrow, a peer-to-peer platform for borrowing digital assets. Customers will be able to borrow up to 20% of the value of their XAUT in USD, BTC, and USDTt.