Tokenized Silver Volumes Surge Amid Rising Metal Prices and Supply Concerns
Tokenized silver has seen a remarkable increase in activity as monthly transfer volumes have surged by more than 1,200% over the past 30 days, with holders up approximately 300% and net asset value (NAV) rising around 40%. This growth in on-chain demand parallels gains in futures and ETFs as silver prices hit successive record highs.
The tokenized silver trust offers a gateway for non-U.S. investors to gain exposure to the SLV, allowing 24/7 minting, redeeming, and transferring of tokens, reflecting a broader trend in the tokenization of real-world assets.
Pricing dynamics reveal significant regional differences, with Asian premiums over COMEX reaching double digits and the London forward curve showing backwardation around $80 per ounce, indicating near-term supply stress. Adding to supply concerns, China will impose export licensing on refined silver starting January 1, which is expected to exert additional price pressure.
Demand from the solar-power sector remains robust, as photovoltaic (PV) manufacturing consumption continues to be largely inelastic despite rising prices. The on-chain rally in tokenized silver not only underscores rising investor interest but also supports the view that tokenization is an expanding method of accessing and trading real-world commodities.
