Tokenized gold protocols are experiencing significant growth as the broader cryptocurrency market faces a downturn. Gold prices have surged to record highs, reaching $5,417 per ounce at the end of January 2026, and maintaining levels above $5,000. This has fueled a 62% year-to-date increase in Tether Gold's market value to $3.7 billion, and a 48% rise in Paxos Gold to $2.4 billion, according to DefiLlama data. In contrast, the global cryptocurrency market has seen a 21% decline in market capitalization since the start of the year. Bitcoin has lost all gains made since Trump's 2024 election victory, and Aave, a leading DeFi protocol, has experienced a 19% reduction in deposit volume. Meanwhile, tokenization platforms like Ondo Finance and Securitize have reported double-digit growth, highlighting a shift towards asset-backed digital tokens amid market volatility.