Tether Gold (XAUT) rises 5.1% amid shifting DeFi deposit trends

Tether Gold (XAUT) has seen a significant rise in value and utility within the decentralized finance (DeFi) ecosystem. The tokenized gold asset recently increased by 5.1%, reaching a price of approximately $4,918.79. This growth is driven by the strength of physical gold prices and its role as a safe-haven asset amid broader cryptocurrency market volatility.

Data shows a notable shift in where investors are depositing XAUT. Over a 90-day period, total XAUT deposits on the Aave protocol climbed from roughly $40 million in early June to $76.7 million by mid-August, representing a 91.7% increase. Aave V4, the protocol's newest iteration, specifically saw an $8 million influx of the token.

While Aave has become a primary venue for users to use XAUT as collateral to borrow stablecoins, other platforms have seen declines. Deposits on Uniswap V3, Aave V3, and Morpho Blue all decreased during the same window. Despite these outflows, Uniswap V3 maintains significant liquidity for price discovery and spot trading.