PANews reported on May 4, according to CoinDesk, that the minting of gold-backed cryptocurrencies reached its highest level in nearly three years over the past month, driving the overall market capitalization of such tokens up by 6% to $1.43 billion. Meanwhile, the monthly transfer volume of gold-backed cryptocurrencies increased by 77% to $1.27 billion, indicating a significant rise in interest in digital gold assets.

The latest report from the World Gold Council shows that total gold demand in the first quarter of this year reached 1,206 tons, a 1% increase year-on-year, marking the strongest first-quarter growth since 2016. Analysts believe that ETF investors and some crypto users are seeking programmable and on-chain traceable hedging tools amid rising gold prices, leading to increased interest in gold-backed crypto assets.