Tokenized Gold Market Cap Surges 177% in 2025, Driving RWA Growth

VADODARA, January 14, 2026 — The tokenized gold market capitalization exploded by 177% in 2025, rising from $1.6 billion to $4.4 billion, according to a CEX.IO study cited by Cointelegraph. This daily crypto analysis reveals that tokenized gold accounted for approximately 25% of the entire real-world asset (RWA) tokenization market growth, with annual trading volume reaching $178 billion and 115,000 new wallets created. Market structure suggests this represents a fundamental liquidity migration from traditional gold products to blockchain-based alternatives.

Market Context & Background

Similar to the 2021 DeFi summer when yield farming protocols attracted billions in capital, the 2025 tokenized gold surge represents another wave of traditional finance integration. Historical cycles indicate that when an asset class grows 2.6 times faster than its physical counterpart—as tokenized gold did versus physical gold—it typically signals early institutional adoption. The Federal Reserve's ongoing balance sheet normalization has created a search for non-correlated assets, driving interest in tokenized commodities. This mirrors the 2017-2018 period when gold-backed tokens first emerged but lacked the infrastructure for scale; today's growth is supported by mature DeFi protocols and regulatory clarity in jurisdictions like Singapore and Switzerland.

Related Developments: The liquidity shift toward tokenized assets coincides with broader market movements. Recent analysis shows that adding Bitcoin and gold to traditional portfolios significantly improves risk-adjusted returns. Meanwhile, corporate treasury strategies are increasingly incorporating digital assets, potentially creating cascading liquidity effects across markets.

What Happened?

According to the CEX.IO report, the tokenized gold market capitalization increased from $1.6 billion to $4.4 billion throughout 2025, representing 177% growth. The sector added 115,000 new wallets, indicating both retail and institutional participation. Annual trading volume reached $178 billion, making tokenized gold the second-largest category among global gold investment products after physical bullion. The report, detailed in Cointelegraph's coverage of the CEX.IO study, notes that this growth outpaced most major spot gold exchange-traded funds (ETFs), suggesting a structural shift in where gold trading liquidity resides.

Technical Analysis & Price Action

On-chain data indicates the $4.4 billion market cap level represents a significant order block where previous accumulation occurred. The 177% surge created a substantial fair value gap (FVG) between $2.8 billion and $3.6 billion that may need filling during any correction. Volume profile analysis shows concentrated liquidity around the $4.0 billion level, suggesting strong institutional support. The relative strength index (RSI) equivalent for market cap growth appears overextended on weekly timeframes, indicating potential consolidation. Moving averages show the 50-week exponential moving average (EMA) at $2.1 billion providing dynamic support.

Bullish Invalidation: A sustained break below the $3.2 billion market cap level would invalidate the current uptrend structure, suggesting failed momentum.

Bearish Invalidation: A decisive move above $5.0 billion with accompanying volume would negate any near-term bearish scenarios, confirming acceleration.

By The Numbers

Why It Matters

For institutions, this growth represents a new avenue for gold exposure without custodial friction, potentially improving portfolio Sharpe ratios through enhanced liquidity and 24/7 trading. The $178 billion annual trading volume indicates deep enough markets for sizable allocations. For retail investors, tokenized gold offers fractional ownership and integration with DeFi yield strategies through platforms like Ethereum's upcoming Pectra upgrade, which will enhance scalability for RWA applications. The outperformance versus traditional gold ETFs suggests a permanent liquidity grab is underway, similar to how spot Bitcoin ETFs captured market share from futures products in 2024.

Community Sentiment

Market analysts on X/Twitter highlight the convergence of traditional finance and blockchain infrastructure. One quantitative researcher noted, "The 2.6x growth premium versus physical gold indicates structural alpha in tokenized formats." Another pointed to the wallet growth as evidence of both institutional and retail participation, suggesting broader adoption than previous cycles. Sentiment remains cautiously optimistic, with most commentators emphasizing the need for continued regulatory clarity to sustain momentum.

Price Prediction / Future Outlook

Bullish Case: If the current growth trajectory continues and regulatory frameworks solidify, tokenized gold could reach a $7-8 billion market cap by end-2026. This scenario assumes continued underperformance of traditional gold ETFs and successful integration with emerging DeFi protocols. A breakout above $5.0 billion would confirm this path.

Bearish Case: Regulatory headwinds or a broader crypto market correction could trigger a liquidity squeeze, pulling the market cap back to fill the FVG around $3.2-3.6 billion. This would represent a 20-30% correction but maintain the longer-term uptrend structure if the $3.2 billion level holds.