Trump’s tariff policy has driven gold token trading to soar
On January 20, 2025, after Trump announced the tariff policy, the on-chain gold trading market was extremely hot. The trading volumes of Gold tokens such as Paxos Gold (PAXG), Tether Gold (XAUT), and Kinesis Gold (KAU) have increased significantly. The trading volume of PAXG soared by more than 900%, that of XAUT increased by more than 300%, and that of KAU soared by 83,00%. The market value of the entire tokenized gold sector increased by 21%, and the trading volume soared nearly tenfold.
The tokenized gold market rose in tandem with the traditional gold market
Tokenized gold belongs to the RWA track. Although RWA is still in its early stage, it has attracted the attention of investors because it combines real assets with blockchain. During the same period, the price of physical gold also kept rising. As of now, the gold price has risen by more than 18% this year and reached a historical high of $3,118 per ounce at the end of March. In contrast, the price of Bitcoin has retreated by more than 12%, indicating a strong risk-averse sentiment in the market. Gold is popular in both traditional and crypto sectors.
The crypto market and the US stock futures market have cooled down
However, the prosperity of the gold token market has not driven the entire crypto market. On “Black Monday”, the crypto market suffered a heavy blow, with the total amount of margin calls across the entire network reaching 1.36 billion US dollars in a single day. The US stock futures market was also affected. S&P500 futures dropped by 5.98%, Nasdaq 100 futures fell by 6.2%, and Dow Jones futures declined by 5.5%. The market was full of uncertainties.
Trump’s trade policy changes the flow of funds
Trump’s trade policies have also affected the flow of funds. Investor demand for stablecoins and tokenized assets has increased, similar to that during the 2023 banking crisis. Tether, the world’s largest stablecoin issuer by trading volume, is considering launching a stablecoin version that will only be used in the United States and is currently discussing the relevant framework with US regulatory authorities.
Conclusion
Trump’s tariff policy has brought huge changes to the financial market. It has heated up the risk aversion sentiment on the chain, and the trading volume of gold tokens has exceeded 1 billion US dollars. At the same time, it also triggered fluctuations in the crypto market and the US stock futures market, altering the flow of funds. In the future, the market trend remains uncertain. Investors need to closely monitor market dynamics and reasonably adjust their investment strategies.
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