Blockchain-based tokenized commodities are closing in on the $4 billion milestone, following fresh all-time highs achieved by the world’s leading precious metals.
Gold, silver and platinum reached record highs on Friday, with the spot price of gold rising to as high as $4,530 per ounce. TradingView data shows. Silver, which currently has little share of the tokenized commodity market, briefly hit an all-time high of $74.56 an ounce.
Tokenized goods rose 11% in the month to Friday, reaching $3.93 billion, According to to the data aggregator RWA.xyz. The list of largest tokenized commodities included Tether Gold (XAUt) worth $1.74 billion, followed by Paxos Gold (PAXG) worth $1.61 billion.
Tokenized precious metals can be moved and traded on-chain outside classic market hours, although prices, liquidity and redemption remain tied to legacy infrastructure.
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Tokenized commodities are part of the broader real world asset (RWA) sector, which involves the issuance of blockchain-based representations of classic assets to enable faster settlements and fractional ownership.
Investment bank Standard Chartered predicts that tokenized RWAs (excluding stablecoins) will grow to $2 trillion by 2028, with $250 billion projected to flow into “less liquid” investments such as private equity and commodities.
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Ethereum is taking the lion’s share of the RWA tokenization growth
Ethereum is becoming the most popular blockchain network for tokenized RWAs.
It holds 65% of the $12.7 billion tokenized RWA market share, while BNB Chain is in second place with 10.5%, or $1.85 billion, according to data from RWA.xyz can be seen.
The development of tokenization may contribute to increased blockchain activity and transaction fees on Ethereum.
However, blockchain data shows that tokenization of classic financial assets still represents a relatively petite part of onchain activity compared to more established operate cases such as stablecoins and fungible token trading.
According to data from the crypto platform, Ethereum ranked fourth in total transaction fees over the past 30 days, generating $11.41 million Nansen.
The Tron network, where stablecoin activity dominates, took first place with fees of $29.5 million. BNB Chain and Solana took second and third place, respectively. These two blockchains are popular for token launches and retail trading.
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