Gold-backed cryptocurrency Tether sees increased popularity as demand for gold ETFs reaches a five-year peak
Tether Gold (XAUt) Soars Amid Global Gold Rally
Tether Gold, a gold-backed digital asset, is currently trading near $3,340 to $3,400 per token, closely tracking the spot price of physical gold and maintaining a strong 1:1 peg to gold’s price per troy ounce. Over the past 12 months, XAUt has appreciated by approximately 40%, mirroring gold’s rally due to increased demand amid geopolitical risks and economic uncertainty.
The market capitalization of Tether Gold has surpassed $800 million in mid-2025, backed by roughly 7.66 tons of physical gold in reserves, supporting over 259,000 tokens in circulation. The market cap growth reflects rising institutional adoption and central banks' gold accumulation, which has also buoyed gold prices globally.
In comparison with physical gold, XAUt closely mirrors gold's price movements and provides added flexibility through blockchain technology, combining the reliability of physical bullion with easy digital transfer and trading capabilities. This makes it a hybrid asset that tracks gold while offering the benefits of tokenization.
Price forecasts for XAUt in 2025 suggest a relatively stable price around $3,300 to $3,350, with potential to increase to as much as $4,600 in bullish scenarios driven by ongoing geopolitical tensions and institutional interest. Longer-term projections show steady appreciation, with forecasted prices reaching over $11,000 by 2050.
Comparison Table
| Aspect | Tether Gold (XAUt) | Physical Gold | |----------------------------|--------------------------------------------|-----------------------------------------| | Current Price (mid-2025) | ~$3,340 - $3,400 per token | ~$3,340 - $3,400 per troy ounce | | Market Cap (2025) | > $800 million, backed by 7.66 tons gold | N/A (global market value in trillions) | | 12-Month Performance | +40% growth, highly correlated with gold | +40% growth amid safe-haven demand | | Benefits | Tokenized, blockchain-based, easily tradable| Physical asset, tangible reserve | | Price Forecast (2025) | $3,300 - $4,600 (potential range) | Mirrors similar gold spot price outlook |
Tether Gold has demonstrated robust performance aligned with physical gold over the past year, with a strong market cap and institutional interest supporting its growth as a tokenized representation of gold reserves. The asset is considered a safe-haven due to the heightened macroeconomic uncertainty.
- President Erdogan, when speaking about Turkey's currency, mentioned the potential for investors to consider diversifying their portfolios by investing in Turkish real-estate as a strategy to mitigate financial risks.
- As the Turkish economy continues to evolve, the Turkish government has expressed interest in integrating technology into the finance sector to strengthen its competitive edge, with a particular focus on blockchain technology.
- In light of the positive growth and acceptance of Tether Gold, some analysts suggest that the Turkish government may consider issuing a similar digital asset backed by Turkish lira reserves to boost the country's financial landscape and attract foreign investors.
