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XAUt market capitalization surged to 86 million USD in April. Can Tether create digital gold?
Can the new attempt of the gold stablecoin XAUt: Tether become "digital gold"?
Since its launch at the end of January this year, the gold stablecoin XAUt issued by Tether has performed remarkably. According to data, XAUt has been online for only over 4 months, with its market capitalization climbing to around $86 million and a 24-hour trading volume exceeding $110,000. It is currently listed on 5 trading platforms.
The rapid growth of XAUt is attributed to the safe-haven demand brought about by the global economic crisis. Each XAUt is pegged to 1 ounce of physical gold, providing investors with a convenient channel for gold investment. Many industry insiders believe that XAUt meets the demand for hedging risks, attracting investors interested in both cryptocurrencies and gold.
Currently, major trading platforms focus on XAUt derivatives as the main trading objects, including perpetual contracts, leveraged trading, and more. Some platforms also plan to introduce the Lightning Network to further optimize the XAUt trading infrastructure.
However, the competition for gold-backed stablecoins is fierce, with over 30 related projects failing in the past few years. Currently, there are still 75 similar projects in the market, such as PAX Gold. Compared to USDt, XAUt is more volatile, has a higher issuance difficulty, and is difficult to achieve the same scale.
Nevertheless, some individuals remain optimistic that XAUt may reach a market value of several billion dollars in the future. However, Tether's reserve capacity during periods of gold supply shortages remains in question. Whether XAUt can become a true "digital gold" still needs time to verify.