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Let me introduce something interesting to the new frens in the circle: Recently, there has been a phenomenon where the Trading Volume of certain tokenized precious metal products has surged suddenly. The logic behind it is actually not complicated. Simply put, some teams have "moved" the precious metal assets from TradFi to the Blockchain in the form of Tokens. In the past, if you wanted to buy silver or gold, you had to go through a securities account and hassle with fiat exchanges, which was a pain. Now, it's great, you can operate directly in your Wallet, place an order with one click, and you don’t need to open any accounts.
This is equivalent to building a bridge between the traditional precious metals market and the crypto market. The flow of funds has become smooth, which is interesting.
Why is the Trading Volume surging? I see two main driving forces. One is the lowering of the threshold. Many people in the crypto space have always had thoughts about gold and silver, but the traditional routes are too awkward. Now that tokenization solutions have emerged, it's like opening a shortcut. Once the silver market becomes active, this group of people can immediately feel it and rush in directly through token products, so the Trading Volume will naturally soar.
Another opportunity is arbitrage. There is often a subtle price discrepancy between on-chain token prices and spot silver. As long as it is profitable, those quick-reacting arbitrage funds can instantly sense it, further boosting the trading volume through frequent buying and selling.
What does this mean? Personally, I feel this is not an isolated incident. It actually signals a major trend – the accelerated migration of traditional assets to on-chain. In the past, we often said that crypto and TradFi would merge, but we only heard about it without seeing it happen. Now, the case of tokenizing precious metals truly puts this merger into practice. In the future, there may be more assets like gold, crude oil, and even real estate gradually "packaged" into trading products within the crypto world. This shift may happen even faster than we imagine.