Interest in silver is shifting toward tokenized markets, with onchain trading volumes increasing alongside activity in futures and exchange-traded funds (ETFs) as the metal witnesses volatility after achieving record highs throughout the month.
Data from RWA.xyz indicates that the monthly transfer volume for its tokenized version of the iShares Silver Trust (SLV) has surged over 1,200% in the last 30 days, along with a roughly 300% rise in holders and a nearly 40% increase in net asset value.
Tokenization refers to representing real-world assets, such as private equity, real estate, and commodities, as digital tokens on a blockchain. This process facilitates easier trading and divisibility of assets, opening doors for fractional ownership and enhanced liquidity.
The tokenized silver trust allows non-U.S. investors to access SLV, with the capability to mint, redeem, and transfer tokens at any time.
Pricing in physical markets has significantly diverged from futures pricing, with analysts noting premiums in Asia reaching double digits over COMEX, and the London forward curve in backwardation—indicating that at nearly $80 an ounce, the metal is priced higher today than in the future, reflecting near-term supply tensions.
The rally in silver has been fueled by a combination of supply limitations, structural demand, and macroeconomic factors that have tightened physical markets.
Analysts highlight China’s decision to implement export licensing for refined silver starting Jan. 1 as a factor exacerbating supply availability concerns—leading to price increases—while elevated futures margins and year-end trading dynamics have complicated traditional trading venues.
Simultaneously, demand from the solar power sector continues to grow, with silver consumption related to photovoltaic manufacturing remaining largely inelastic despite prices more than tripling from 2024 levels.
The onchain rally in silver, alongside its traditional finance counterpart, serves as another indication that tokenized assets represent a lasting trend.
