Safe Haven Gold Rally Extends to Cryptocurrency Markets: Here’s How

Physical gold prices have reached their highest level in a month, as demand for it as a safe haven has grown amid growing geopolitical tensions.

At the same time, this bullion trend has transferred to digital markets. Data on the chain shows a significant increase in the accumulation of tokenized gold assets.

Gold prices advance as investors seek safety

Gold rose 2% on March 2, reaching an intraday high of $394.05 per ounce, its highest level since January 30. At press time, the price was revised to $5,363.7.

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The impetus came directly: the report said US and Israeli strikes on Iran led to safe-haven flows of precious metals into global markets. Monday’s escalation added additional momentum to gold’s bullish wave. Gold has achieved remarkable returns, rising almost 65% in 2025 alone.

Crypto participants noted the importance of timing. With digital asset markets simultaneously experiencing renewed volatility, tokenized gold assets have provided a way to maintain exposure to gold without relying on traditional financial systems.

Major purchases highlight demand for tokenized gold

On-chain analytics firm Loconchain has identified an inactive wallet that spent $1 million USDC to buy PAXGOLD (PAXG) and TetherGOLD (XAUT) tokens. The address, with the code 0x1C70, performed several exchanges over several hours and still held $4 million USDC.

LeConchain said the wallet still holds 4M USDC and can buy more.

An Ethereum whale rolled his holdings from eth to xaut while accepting a realized loss. OnchainLens reported that the wallet (0x744b) exchanged 1,000 eth for 1.94 million dollars for 358.49 xaut at $5,413, incurring a loss of more than $60,000.

The publication said that in the last two years, the whale received 1,645 eth for $3.26 million and still holds 645 eth ($1.25 million).

There was also an increase in gold holdings in the London-based asset management company Abraxas Capital Management. An analyst on the chain, based on data from the Arkham Intelligence platform, revealed that the company received 28,723 xaut tokens worth $151 million from the Tether treasury, which represents the largest xaut transfer recorded in the last three weeks.

The analyst added an interesting piece of information: Heka Funds (Abraxas Capital) is one of Tether’s largest and most important institutional clients. At one point, it held 1.5% of the total USDT supply. Across Tether’s publicly announced on-chain address pools, it is currently the second largest entity in terms of commitment volume.

The growing accumulation of tokenized gold indicates greater interest in alternative stores of value in the cryptocurrency world. Investors may prefer gold tokens for the price stability and earning potential associated with metal markets, while reducing the risks resulting from extreme volatility in many digital assets.

BeInCrypto recently reported that the tokenized gold sector has registered significant expansion, with its market value exceeding $6 billion. Also, according to CoinGecko, daily trading volumes for xaut and paxg exceeded $1 billion yesterday, indicating strong investor demand.

The question remains whether this is a temporary flight to safety or represents a sustained shift towards commodity-backed digital tokens as March 2026 progresses and more on-chain data emerges.

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