Behind the Surge of XAUt: Whales Buy $2.12 Million in 8 Hours

XAUt (Tether Gold) continued to rise today, reaching $4,838.02 at the time of writing, up 3.62% in 24 hours, with a market capitalization increasing to $2.125 billion. Against the broader market backdrop, the tokenized gold sector is heating up, with the overall market size surpassing $3.5 billion. However, behind this surge, large institutional buy-ins have become a key driving force, accompanied by significant security risks that should not be overlooked.

Institutional Buying Driving XAUt Upward

According to the latest on-chain data, whale addresses’ purchasing activity has become an important support for XAUt’s recent gains. In the past 8 hours, whale addresses used multi-asset portfolios including ETH, WTAO, and USDT to purchase 438.74 XAUt, totaling $2.12 million. This large transaction clearly reflects ongoing demand from institutions or high-net-worth investors for tokenized gold.

More notably, there is a long-term buying pattern. A whale has accumulated 8,337 XAUt over the past 20 days through cyclic borrowing, with a total value of $38.4 million. This sustained large-scale accumulation indicates that professional investors are not only optimistic about the long-term value of gold assets but are also leveraging borrowing to further strengthen their bullish stance on the market.

The Tokenized Gold Market Is Expanding

XAUt’s gains align with the growth trend of the entire tokenized gold sector. According to the latest data, the total market cap of tokenized gold has surpassed $3.5 billion, indicating that more traditional financial capital is beginning to allocate gold assets via blockchain.

In comparison, XAUt and PAXG (Paxos Gold) are two major tokenized gold products:

XAUt’s performance outperforms similar products, reflecting higher market recognition for the tokenized gold issued by Tether.

Implications Behind Whale Purchases

Signal of Institutional Allocation

The frequent buying activity of large whales, with XAUt’s market cap increasing by $74.2 million and 24-hour trading volume reaching $253 million, indicates that tokenized gold is attracting more institutional-level buyers, reinforcing the upward market trend.

Long-term Bullish Outlook

Cyclic borrowing and purchasing strategies are commonly used by professional investors who are long-term optimistic about an asset. The whale’s cumulative investment of $38.4 million over 20 days, along with continued leverage use, demonstrates strong confidence in the long-term value of gold assets.

Source of Price Support

The ongoing buying by whales provides sustained capital support for XAUt. The 7-day increase of 4.88% and 30-day increase of 10.40% suggest that this upward trend has been ongoing for some time, with institutional buying being a significant driving force.

Security Risks to Watch Out For

While market growth is encouraging, security risks must also be acknowledged. On-chain data monitoring shows that on January 20, 2026, a phishing attack occurred, resulting in a user losing approximately $3.02 million worth of SLV and XAUt due to signing a phishing signature. This incident serves as a reminder that, although tokenized gold has value storage properties, users must remain cautious with contract authorizations and signature requests during interactions.

Summary

XAUt’s recent gains are not solely driven by market sentiment but are the result of continuous allocation by institutional buyers. As a form of traditional assets on the blockchain, tokenized gold is attracting increasing participation from professional capital. In the long term, gold’s role as a store of value underpins the fundamentals of this sector. However, investors should also enhance their security awareness, exercise caution in contract interactions, and avoid falling victim to phishing attacks.