Demand for safe-haven surges! Investors start buying cryptocurrencies anchored to gold

As geopolitical tensions continue and global inflation remains high heading into 2022, investor demand for safe-haven has surged, with buying gold-anchored cryptocurrencies becoming a new safe-haven option.

According to data from Arcane Research's weekly report, the market capitalization of gold-anchored cryptocurrencies grew 60 percent in 2022, surpassing $1 billion for the first time.

PAX Gold (PAXG), Tether Gold (XAUT) and similar cryptocurrencies anchored to the precious metal have climbed in market value as investors seek "diversification from inflation" in the cryptocurrency space, Arcane Research wrote in the report.

Arcane Research notes that "rising gold prices have attracted more crypto investors to buy gold-anchored cryptocurrencies because they allow crypto investors to diversify inflation through familiar crypto market infrastructure."