Demand for tokenized gold rises despite 14% drop in gold prices in Q2

In the second quarter, gold prices fell 14.1% to $4,008 per ounce, yet demand for tokenized gold via Tether Gold (XAUT) increased by 9.5%, adding over 53,000 tokens representing 1.66 tonnes of physical gold. This trend shows investors see the price drop as a buying opportunity rather than a risk to avoid. Tether Gold combines physical gold ownership with blockchain benefits, making it easier to trade and integrate into decentralized finance (DeFi). However, only 8% of XAUT's market cap is currently used in DeFi, indicating room for growth in portfolio adoption and collateral use. Stronger liquidity and clearer regulations could help XAUT move beyond a defensive hedge to a core crypto asset.