Volumes for tokenized silver have skyrocketed by 1,200% as prices reached historic highs surpassing $80, pushing the overall value of tokenized metals beyond $300 million and highlighting tight physical market conditions.
The Future of Tokenized Silver
Monthly transfer volumes for tokenized versions of the iShares Silver Trust have surged approximately 1,200%, based on blockchain data, as silver prices hit record levels exceeding $80 per ounce in 2025.
This increase in on-chain activity aligns with silver’s remarkable price surge this year, which has outpaced gold while breaking through long-standing resistance levels, as indicated by market data.
The total market capitalization for tokenized silver products has ascended to over $300 million, achieving an all-time high, as per industry tracking services. The higher transfer volumes reveal a landscape of active trading, rotation, and positioning rather than mere passive holding, as noted by market observers.
Physical silver prices have risen sharply in 2025, fueled by supply constraints and persistent industrial demand from the solar energy sector, according to commodity analysts. Additionally, markets have begun to factor in potential U.S. interest rate reductions, a macroeconomic scenario historically supportive of precious metal prices.
Physical market indicators reveal signs of tightness, with reports of double-digit premiums in certain parts of Asia and decreasing inventory levels, as stated by regional dealers. The gap between available physical assets and paper pricing has sparked interest in alternative exposure methods, including tokenized assets, according to analysts.
Market participants have demonstrated varied strategies during this rally. Some retail investors have shifted their allocations from cryptocurrencies to physical metals, while others have opted for tokenized silver to obtain price exposure without the burdens of storage or transportation, according to trading platform data.
Tokenized assets provide around-the-clock settlement and swift responses to price changes, features lacking in traditional commodity vehicles, industry participants pointed out.
The rapid price surge has raised concerns among some analysts, citing that swift rallies in commodity markets often lead to profit-taking. Previous regulatory actions, like margin requirement adjustments by exchanges such as CME Group, have historically resulted in sudden reversals in commodity prices, according to market history.
The increase in tokenized silver volumes highlights the growing acceptance of blockchain technology for accessing traditional assets, especially in times of inflation worries and supply chain pressures, as observed by digital asset analysts. This trend indicates that tokenization is extending beyond cryptocurrency-focused applications into mainstream commodity markets, industry experts concluded.
