PANews reported on May 4, according to CoinDesk, that the minting volume of gold-backed cryptocurrencies reached its highest level in nearly three years over the past month, driving the overall market capitalization of such tokens up by 6% to $1.43 billion. At the same time, the monthly transaction volume of gold-backed cryptocurrencies increased by 77% to $1.27 billion, indicating a significant rise in interest in digital gold assets.
The latest report from the World Gold Council shows that total gold demand reached 1,206 tons in the first quarter of this year, an increase of 1% year-on-year, marking the strongest growth rate for the first quarter since 2016. Analysts believe that ETF investors and some cryptocurrency users are seeking programmable and on-chain traceable hedging tools against the backdrop of rising gold prices, leading to increased interest in gold-backed crypto assets.
