Tokenized silver markets are surging alongside physical silver’s all-time high of $84 per ounce, now trading at $75.72. The tokenized iShares Silver Trust (SLV) saw monthly transfer volume jump 1,200% in the past 30 days, driven by supply constraints and rising demand.
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Tokenized SLV monthly transfer volume surged 1,200% amid silver price rally.
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On-chain data from RWA.xyz shows 300% increase in SLV holders and 40% net asset value rise.
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China’s new export licensing for refined silver from January 1 exacerbates supply concerns, with Shanghai prices at $85/oz versus $77/oz on COMEX.
Discover how silver’s all-time high is fueling tokenized silver markets with 1,200% volume surge in SLV tokens. Explore supply issues and price divergences—stay ahead in RWAs today!
What is driving the surge in tokenized silver markets?
Tokenized silver markets are experiencing explosive growth as physical silver prices hit an all-time high of around $84 per ounce before retreating slightly to $75.72 per ounce. On-chain metrics indicate tokenized versions of assets like the iShares Silver Trust (SLV) have seen monthly transfer volumes increase by approximately 1,200% over the past 30 days, mirroring heightened activity in futures and ETFs. Factors such as supply constraints from China and strong industrial demand are propelling this trend.
How are China’s silver export restrictions impacting tokenized markets?
China’s imposition of export licensing requirements on refined silver, effective January 1, has heightened global supply concerns. As a major net exporter shipping about 121 million ounces annually through Hong Kong, this policy could tighten availability. Alexander Campbell, founder of Rose AI, notes that regional price divergences—$85 per ounce in Shanghai, $91 in Dubai, and $77 on COMEX—signal physical market stress spilling into tokenized assets. Data from RWA.xyz confirms SLV tokenized holders rose 300% with a 40% net asset value increase in the same period. Campbell emphasizes monetary demand for SLV shares after years of outflows, stating, “You live in a world of dollars. The marginal buyers don’t. They’re paying $10-14 premiums, and they don’t care. When physical diverges from paper like this, one of them is wrong. Historically, it’s not physical.” The London OTC market shows the deepest backwardation in decades, with spot at $80 per ounce dropping to $73 forward, contrasting COMEX’s contango.
Frequently Asked Questions
What caused tokenized SLV transfer volume to surge 1,200%?
The 1,200% surge in tokenized iShares Silver Trust (SLV) monthly transfer volume stems from silver’s price rally to $84 per ounce, driven by supply constraints and ETF inflows. RWA.xyz data shows parallel 300% growth in holders and 40% net asset value rise, reflecting heightened on-chain interest in real-world assets (RWAs).
Why did silver prices hit an all-time high recently?
Silver reached around $84 per ounce due to multiple drivers including China’s refined silver export licensing from January 1, macroeconomic tailwinds, and structural industrial demand. Elon Musk highlighted risks to industrial processes from this move, while regional premiums underscore physical tightness over paper markets.
Key Takeaways
- Tokenized silver volumes exploding: SLV transfers up 1,200% as physical prices peak, per RWA.xyz data.
- Supply stress intensifying: China’s export curbs and backwardation signal potential for sustained higher prices.
- Monitor positioning: Silver’s 19% net long open interest leaves room for further upside, unlike more extended gold.
Conclusion
The surge in tokenized silver markets, exemplified by the iShares Silver Trust (SLV)’s dramatic volume and holder growth, underscores the interplay between physical supply constraints—like China’s export licensing requirements—and on-chain demand. With price divergences persisting across Shanghai, Dubai, and COMEX, alongside CME’s margin hikes on precious metals, investors should watch for continued volatility in silver and related tokenized assets. As markets await Fed minutes for rate clues, positioning in RWAs offers strategic exposure to these dynamics.
Silver’s momentum is also influencing broader precious metals. CME raised margins to $25,000 per contract for gold, silver, platinum, and palladium effective Monday. Expert trader Jacob Canfield warns of 15%-20% downside risks if margins exceed 20%. Gold slipped over 2% from $4,549 per ounce to $4,442, while spot platinum fell 6% to $2,305.15 from $2,478.50, and palladium dropped 13.2% to $1,669 per ounce.
ActivTrades analyst Ricardo Evangelista attributes these pullbacks to year-end profit-taking, tempered by U.S. progress in Ukraine peace talks. UBS analysts caution that gold’s elevated premiums carry downside if the Fed signals a hawkish pivot, with traders eyeing two 2026 rate cuts.
Rose AI’s Alexander Campbell highlights silver’s relative positioning strength, with 19% net long open interest versus gold’s 31%, suggesting fuel remains for price advances. A year ago, silver spot was $29 with contango to $42; now at $80 spot falling to $73 forward, physical markets demand repricing.
