Tether Gold (The value of XAUT), the precious metal, broke its daily trading record on March 23 on Binance.
As XAUT traded at around $4,552 on March 25, its perpetual trading, a crypto-based product that allows traders to speculate on the price of gold without holding real assets, peaked at the largest cryptocurrency exchange and trading volume. On Monday, the constant volume of XAUT on Binance reached $6.40 billion, thus rising to become the fifth most traded group on the exchange, according to data from CryptoQuant.
At the beginning of this month, the constant volume of XAUT on the exchange increased to almost $ 2 billion, representing a 220% increase to date. In the past, a large rally in the growth of XAUT coincided with a rise in prices that could indicate a bullish market.
The apparent gold demand is consistent with bearish sentiment
The steady increase in token gold trading on Binance has been accompanied by price caution. Traders on Binance have been searching for gold and other precious metals, which have been in a bull market for the past year.
However, the price of XAUT, which tracks real gold, has shown a strong finish ahead of market changes.
While political tensions in the Middle East have previously supported gold prices as a safe haven, the environment where central banks around the world are signaling that there is no deflation driven by higher energy prices, has created a headwind that could hamper gold.
In the last 30 days, the price of XAUT has decreased by 12.33% to reach $4,552 at press time. In the past seven days, XAUT has fallen another 6.7%, bringing its market cap down to about $2.5 billion, according to CoinMarketCap price data.
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