As the traditional gold market heats up, cryptocurrency investors have followed suit, turning to tokenized versions of the precious metal that offer both price exposure and digital flexibility. Gold-backed cryptocurrencies such as Paxos Gold (PAXG) and Tether Gold (XAUT) have rallied 24.15% and 23.7%, respectively, to new highs of more than $3,300 this year, roughly matching the gains of spot gold. They then retreated slightly to $3,265 and $3,244, respectively. While gold-backed cryptocurrencies have rallied sharply so far this year, the broader crypto market is on a downward trend. Bitcoin has lost more than 11 percent so far this year, while the overall cryptocurrency market is down a little more than 30 percent. These tokens, which are backed by physical gold and track their price, have seen their value skyrocket as investors seek shelter from uncertainty stemming from the escalating U.S.-China trade war. The move reflects a broader return to gold as a safe-haven asset. According to RWA.xyz, net tokens minted in gold-backed cryptocurrencies exceeded $42.70 million this year in Quarter 1, and combined with the rise in gold prices, their total market capitalization approached $1.40 billion.