Gold-backed cryptocurrencies PAXG and XAUT can be seen hitting new all-time highs, hitting the gains of the rest of the cryptocurrency market. So far this year, PAXG and XAUT have provided investors with spectacular returns as leading cryptocurrencies such as Bitcoin continue to underperform. Centratti says these digital assets, which are fully backed by physical gold, offer a compelling combination of price appreciation opportunity and digital convenience.
PAXG and XAUT have increased 24.15% and 23.7% respectively YTD, both recently hitting new all-time highs above $3,300. These gains more or less mirror the performance of spot gold, a testament to their quality in tracking the price of the precious metal. For one thing, the entire cryptocurrency market is currently in a bear market. The CoinDesk 20 (CD20) index is down over 30%. Bitcoin (BTC), despite being the largest and most established cryptocurrency, has seen similar bleeding, down over 11% year-to-date.
Francisco, a senior reporter for CoinDesk, has an inside look at these emerging market trends. A lover of all things crypto and personal finance, Francisco is no stranger to the cryptic world of digital currency. Prior to joining CoinDesk, he reported for the largest financial publication and crypto news outlet, sharpening his journalistic prowess on the frontlines of the industry.
Francisco’s interest in the crypto space bleeds into his personal life as well. He personally invests in bitcoin, ether, solana, and PAXG. This practical experience offers him unique perspectives within the volatile cryptocurrency market and its range of digital assets.
Gold-backed cryptocurrencies such as PAXG and XAUT offer investors a thrilling new investment option. They give you access to fluctuation in gold’s price, along with the benefits afforded by digital assets. With their value backed by real physical gold, these cryptocurrencies offer a sense of security and stability that many of their non-backed counterparts do not. Their strong recent performance highlights their potential to be a complementary addition to a diversified investment portfolio.
