Silver (XAG) breaks through a 46-year high, can tokenization of silver become a new trend in the crypto market?

Recently, silver (XAG) closed at 58 dollars, reaching the highest monthly closing price in 46 years, with retail investor interest even surpassing Bitcoin. This price breakthrough not only reflects the global capital flow towards hard assets but also encourages investors to explore the new digital asset field of tokenization of silver.

Analysts point out that the surge in silver prices is due to global inflation, increased industrial demand, and supply constraints. The silver/Bitcoin ratio has broken through a long-term downward trend, indicating that investors' assessment of value storage assets is changing, providing a good foundation for the tokenization of silver.

The tokenization silver market is still in its early stages, with limited project scale. Representative projects include Kinesis Silver (KAG) and Gram Silver (GRAMS). Although the market size is small, its fundamentals are strengthening, with advantages such as all-weather global trading, fractional ownership, immutable provenance, and usability for DeFi collateral. According to Commodity Block data, the market capitalization of the tokenization silver market is approximately $200 million, while the market capitalization of tokenized gold has reached $2.57 billion.

(Data source: Google Trends)

Investor interest in tokenization of silver stems from the trend of blockchainization of real-world assets (RWA). Silver has both industrial metal and investment hedging tool attributes, making it suitable for both retail investment and DeFi collateral, while blockchain transparency aids in ethical sourcing and regulatory compliance. Amid global economic uncertainty, digital silver is seen as an alternative means of value storage.

The regulatory framework remains a key factor. The UAE, Singapore, and certain regions of the EU are formulating digital asset regulations, but global inconsistencies limit cross-border expansion. In contrast, the tokenized gold market has surpassed $3 billion, led by products like Pax Gold (PAXG), Tether Gold (XAUT), and DGLD from MKS PAMP. If infrastructure, custody standards, and exchange support continue to improve, silver is expected to replicate the development trajectory of gold.

As silver prices soar, the gold-silver ratio breaks, and retail investor interest increases, tokenized silver is becoming the next major RWA category in the crypto market. Future growth rates will depend on market liquidity, infrastructure improvement, and coordination of the global regulatory environment.