Bitcoin (CRYPTO: BTC) failed to live up to its oft-repeated “digital gold” reputation in 2025, while cryptocurrencies linked to precious metals turned out to be the real store of value.
Crypto Derivatives Of Gold Outshine Bitcoin
Physical gold-backed cryptocurrencies, such as Tether Gold (CRYPTO: XAUT) and PAX Gold (CRYPTO: PAXG), have surged over 72% this year.
In fact, Tether Gold and Pax Gold were the sixth and seventh-largest gainers in 2025, dwarfing returns from coins with significantly larger market valuations.
The coins mirrored the gains of spot gold, which rallied to new highs in the year.
Note that these cryptocurrencies provide ownership on a 1:1 basis of one fine troy ounce of gold on a physical bar of gold.
Similarly, Kinesis Silver (KAG), a token backed by one ounce of investment-grade silver bullion, more than doubled in value in the year, aligning with spot silver’s rally.
See Also: Best Gold Trading Strategies
Tough Year For Bitcoin
These gains contrasted with the sharp decline in Bitcoin’s value, which hit new highs earlier but derailed in the year’s final quarter.
The apex cryptocurrency erased all its gains, and currently trades 6.40% lower than it was at the start of the year.
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Gold Is Now 7x Bigger Than Nvidia — And Gundlach Says That Matters Trading Strategies $PAXGPAX Gold$4536.010.47%Overview$BTCBitcoin$88620.131.64%$DOGEDogecoin$0.12571.70%$XAUTTether Gold$4523.500.58%$ZECZcash$442.641.02%Market News and Data brought to you by Benzinga APIs
