ChainCatcher report: Amid geopolitical instability and U.S. tariff policies, gold prices have continued to hit all-time highs in 2026, reaching $5,417 per ounce at the end of January and recently holding above $5,000. The strong performance of gold has driven rapid growth in tokenized gold protocols: according to DefiLlama data, Tether Gold has increased 62% year-to-date to $3.7 billion, while Paxos Gold has risen 48% to $2.4 billion. Broad-based tokenization platforms Ondo Finance and Securitize have also posted double-digit growth. In contrast, the broader crypto market has faced pressure, with global market capitalization declining over 21% since January 1, and Bitcoin erasing all of its gains since Trump’s 2024 election victory. Aave, the leading DeFi protocol, has seen its deposit volume shrink by more than 19%.
Tokenized Gold Protocols Surge as Crypto Market Drops 21%
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Summary
Crypto market volatility persists as tokenized gold protocols gain momentum. Tether Gold and Paxos Gold have risen 62% and 48% year-to-date, with total value locked reaching $3.7 billion and $2.4 billion, respectively. The broader crypto market has declined over 21% since January 1, 2026, with Bitcoin erasing all gains from the 2024 election cycle. Aave deposits have fallen by more than 19%.
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