The market for tokenized commodities is approaching a total value of $4 billion, fueled primarily by investors seeking onchain exposure to gold amid its historic price surge. According to recent data, the sector's market capitalization has reached approximately $3.9 billion, representing an 11.5% increase over the past month.
Gold is the dominant force behind this growth, with gold-backed tokens accounting for over 80% of the tokenized commodities sector. Leading products include Tether Gold (XAUT) and Paxos Gold (PAXG), which track the price of physical gold while offering the benefits of blockchain-based trading, such as 24/7 market access and easier transferability.
The rally is directly tied to the performance of physical precious metals. Spot gold is currently trading around $4,525 per ounce, having recently reached an intraday high near $4,532. The metal has shown remarkable strength, holding firmly above the $4,500 psychological support level. Gold prices have risen nearly 8% in the past month, over 36% in six months, and more than 70% on a yearly basis, reinforcing its appeal as a store of value.
This sustained price appreciation has boosted investor confidence and directly increased demand for tokenized versions that offer a bridge between traditional commodity markets and the onchain economy. The trend mirrors earlier growth seen in tokenized treasuries, suggesting significant potential for further expansion.
Despite the rapid growth, tokenized real-world assets (RWAs) still represent a limited share of overall blockchain activity. Established applications like stablecoins and high-frequency token trading continue to dominate transaction volumes. The future evolution of tokenized commodities into a core pillar of onchain finance will depend on factors including regulatory clarity, institutional confidence, and the ability of blockchain infrastructure to deliver clear advantages over traditional systems.
