On April 14, it was reported that as the traditional gold market heats up, cryptocurrency investors have followed suit and invested in tokenized versions of this precious metal, which provide both price exposure and digital flexibility. So far this year, gold-backed cryptocurrencies such as Paxos Gold (PAXG) and Tether Gold (XAUT) have risen by 24.15% and 23.7% respectively, setting new highs of more than $3300, and the increase is roughly equivalent to spot gold. Their prices subsequently fell back slightly to $3265 and $3244 respectively. Although gold-backed cryptocurrencies have risen sharply so far this year, the broader crypto market is in a downward trend. Bitcoin has fallen more than 11% so far this year, while the overall cryptocurrency market has fallen a little more than 30%. The value of these tokens, which are backed by physical gold and track their prices, has soared as investors seek to escape uncertainty caused by the escalating trade war between China and the United States. The move reflects the broader return of gold as a safe-haven asset. According to RWA.xyz, gold ETF inflows in the first quarter of 2025 reached 226.5 tons, the highest level since the beginning of 2022, with nearly 60% of demand coming from North America. Gold-backed cryptocurrencies net minted more than $42.7 million in tokens in the first quarter of this year, which, together with the rise in gold prices, pushed their total market value to nearly $1.4 billion.