Silver (XAG) is surpassing Bitcoin in terms of retail interest, breaking records from several decades and leading investors to explore a new territory: tokenized silver.
With the liquidity of precious metals on the rise, analysts suggest that digital silver may be the next big on-chain asset class.
46-year high of silver alters market psychology
Silver closed the month at $58, its highest monthly close in 46 years, with retail interest in silver surpassing Bitcoin in global Google trends.
“Silver just hit $58 and had its highest monthly close in 46 years. We can observe a significant amount of liquidity in U.S. stocks, gold, and now silver. Sooner or later, this will likely flow into riskier assets like Bitcoin and cryptocurrencies. The bull market is not over; it’s just delayed,” commented analyst Ash Crypto.
The increase reflects a broad shift of capital towards tangible assets as global inflation, industrial demand, and supply constraints intensify. At the same time, the Silver-Bitcoin ratio has broken a decade-long downtrend.
Silver – Bitcoin Ratio
Breaking out of a decade long downtrend. pic.twitter.com/XqYSeLSTz5
— Florian Kössler (@studentofcycles) December 1, 2025
This signals a significant shift in how retail and institutional investors assess store-of-value assets, paving the way for the rise of tokenized silver.
The tokenized silver market: in its early stage, small, and growing
Despite the price momentum of XAG, the tokenized silver sector remains underdeveloped. Only a few projects, such as Kinesis Silver (KAG) and Gram Silver (GRAMS), appear on CoinGecko.
However, the fundamentals are strengthening. According to research from Commodity Block, tokenized silver is “rapidly redefining how investors access and interact with the precious metals market, offering:
Fractional ownership of silver
Global trading 24/7
Immutable provenance and traceability
Use as collateral in DeFi
The report highlights that the tokenized silver market reached an estimated capitalization of $200 million, while gold-backed tokens dominate with $2.57 billion.
The growing demand for silver suggests a greater appetite for digital commodities, especially as the iShares Silver Trust (SLV) trades at $52.52, reflecting rising global interest. It has increased nearly 3% in pre-market trading.
“Tokenized commodities are breaking traditional ownership models, making physical assets accessible to anyone with an internet connection,” highlights a passage from the report.
Why do investors care now?
The appeal of tokenized silver aligns with a broader trend: the migration of real-world assets (RWAs) to blockchain.
The dual role of silver as an industrial metal (used in electronics, solar, and medical devices) and as an investment store of value uniquely positions it for digital adoption.
Key factors include:
Growth in demand for fractional investments
DeFi protocols increasingly accepting silver-backed collateral
Increased scrutiny on ethical sourcing, supported by blockchain transparency
Global interest in alternative store-of-value during economic uncertainty
Regulatory clarity remains essential. Jurisdictions such as the United Arab Emirates, Singapore, and parts of the EU are developing frameworks for digital commodities, while global inconsistencies continue to limit cross-border scalability.
On the other hand, the tokenized gold market now exceeds $3 billion, led by Pax Gold (PAXG), Tether Gold (XAUT), and new institutional products like MKS PAMP's DGLD.
Silver may follow a similar path if infrastructure, custody standards, and listings on exchanges continue to improve.
With silver prices rising, ratios breaking, and retail interest increasing, tokenized silver may be on the verge of becoming the next big RWA category in crypto.
As liquidity rotates between metals and digital assets, the question for 2025 is no longer whether tokenized silver will grow, but at what speed.
The article 'Silver Breakout Triggers New Crypto Trend: Tokenized Metals Surge' was first seen on BeInCrypto Brazil.
