On-Chain Gold Surpasses $4 Billion as Investors Shift Away from Bitcoin

On-chain gold tops $4B as investors skip Bitcoin - Here's why

Recent trends reveal a significant shift in investor behavior as on-chain gold-backed assets reach a combined value of $4 billion, attracting interest away from Bitcoin. This change highlights the growing preference for stability in a volatile market and the increasing role of gold as a safe-haven asset.

Key Takeaways

On-chain gold-backed stablecoins have surpassed $4 billion in value, indicating a preference for steady assets.
Tether Gold and Paxos Gold dominate the tokenized gold market.
Central banks have consistently increased their gold reserves throughout 2024 and 2025.
A decline in Bitcoin's appeal has led to a significant drop in the Bitcoin-to-gold ratio, with investors leaning towards gold during uncertain times.
Gold's rising value is seen as a macroeconomic challenge for crypto.

The Rise of Gold-Backed Assets

Gold prices and silver prices are on the rise, while Bitcoin remains stagnant. This trend is becoming increasingly significant in the on-chain space. Instead of choosing to invest in Bitcoin (BTC) amid market instability, many investors are opting for tokenized gold.

The total value of gold-backed stablecoins has exceeded $4 billion, a noticeable increase since early 2025. This trend reflects investors seeking safer assets during a turbulent year, with rising gold prices encouraging further interest in gold-tracking tokens.

gold
Source: The Block

Most of the market activity is concentrated in two main products: Tether Gold and Paxos Gold, which together make up the majority of tokenized gold currently in circulation. The growth of their supply has noticeably accelerated in recent months.

Gold's Appeal as a Safe Haven

The shift towards tokenized gold mirrors trends seen off-chain. Throughout 2024 and 2025, central banks have been steady buyers of gold, acquiring large quantities month after month. According to data from the World Gold Council, net purchases peaked at over 70 tonnes in late 2024 and continued into 2025, following a brief slowdown earlier in the year.

Source: World Gold Council

This robust demand for gold has contributed to its upward price trajectory, while Bitcoin has struggled. Gold ETFs have seen consistent inflows, contrasting with Bitcoin ETFs, which have experienced outflows and existing long-term holders trimming their exposure. As a result, the Bitcoin-to-gold ratio has nearly halved in 2025.

Market experts note that this divergence is not accidental. Ray Youssef, CEO of NoOnes, highlighted that gold’s ascendance acts as a macroeconomic pressure on cryptocurrencies, prompting investors to reconsider where they find safety. He remarked to AMBCrypto, “A separate macroeconomic factor that is becoming unfavorable for crypto is gold. Its rise to new highs and growing interest in safe-haven assets appear to be bearish headwinds for BTC.”

With diminishing forecasts for Bitcoin and reduced expectations for a rally during the holiday season, traders are looking towards the beginning of next year for more definitive signs.

Price Trends: A Clear Divide

Currently, gold prices are approaching $4,300 per ounce, and silver has crossed the $60 mark. In stark contrast, Bitcoin has dropped, falling from above $110,000 to around $88,000 and struggling to regain its previous momentum.

This disparity helps explain the shift in capital trends at this time. In uncertain market conditions, investors tend to opt for assets with predictable behaviors, which is crucial for the crypto landscape.

Source: X

Youssef posits that gold’s rally is supported by structural changes rather than speculation, pointing to rising global debt, decreasing yields, and the growing reserves of central banks as factors in gold's attractiveness. “Traders are pricing in the possibility of prolonged macroeconomic fragility by increasing gold exposure, while the crypto market awaits a clearer liquidity landscape,” he stated.

The push towards gold-backed tokens signifies a shift in how investors view "safe havens" in the crypto sector, even though the returns may not be as spectacular.

Conclusion

The evident shift toward gold-backed assets highlights the evolving preferences of investors in the face of market uncertainty. As the dynamics of the cryptocurrency space change, so too does the narrative around safety and value retention in such conditions.