XAUt market capitalization surged to 86 million USD Tether gold stablecoin rapidly rise

XAUt: The gold stablecoin launched by Tether is experiencing rapid rise

As the global economic situation becomes turbulent, Tether's gold stablecoin XAUt is showing an impressive rise. Since its launch at the end of January this year, the market capitalization of XAUt has climbed to around $8.6 million, with a 24-hour trading volume exceeding $110,000, and it is currently listed on 5 exchanges.

The rapid rise of XAUt is attributed to multiple factors. Each XAUt is backed by one ounce of physical gold, providing investors with a convenient channel for gold investment. Since March of this year, the aggressive monetary policies adopted by central banks around the world, such as the Federal Reserve, along with the economic recession triggered by the COVID-19 pandemic, have prompted investors to seek to hedge risks through XAUt.

Compared to traditional gold investment products, XAUt has advantages such as no custody fees, redeemable physical gold, divisible trading units, and 24-hour trading. These factors have collectively driven the market capitalization of XAUt to soar in recent months.

Currently, major trading platforms such as Delta Ex, FTX, and Bitfinex account for approximately 85% of XAUt trading volume. These platforms mainly offer derivatives trading for XAUt, such as perpetual contracts and leveraged trading. In the future, more trading varieties may be launched, and infrastructure like the Lightning Network may be introduced.

Despite the rapid development of XAUt, industry insiders generally believe that it is difficult for it to reach the scale of USDt. The main reason is that the volatility of XAUt is higher than that of USDt, and the issuance process is more complex. However, some argue that the stablecoin pegged to gold still has significant growth potential in the future, possibly reaching a market value of several billion dollars.

The future development of XAUt still faces many challenges, such as the shortage of gold supply. Whether Tether can successfully acquire the title of "digital gold" through XAUt is worth continuous attention.

XAUT-0.09%
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GateUser-00be86fcvip
· 07-26 08:16
Gold is still fragrant, just stocked up a bit.
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LiquidationSurvivorvip
· 07-25 09:55
Gold is still fragrant.
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SnapshotBotvip
· 07-24 15:06
USDT still retains its value.
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StakeWhisperervip
· 07-23 12:13
Hedging does not mean guaranteed profits.
View OriginalReply0
MetaDreamervip
· 07-23 12:11
Is the gold stablecoin playing new tricks?
View OriginalReply0
ApeWithNoFearvip
· 07-23 12:11
Another cut of suckers
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ser_we_are_ngmivip
· 07-23 12:07
Remind us that gold is eternal.
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AirdropATMvip
· 07-23 11:58
Just copy usdt and play with it.
View OriginalReply0
JustAnotherWalletvip
· 07-23 11:53
Only fools buy gold
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