Tokenized silver volumes soar 1,200% as prices hit record highs above $80, pushing tokenized metals past $300m and reflecting tight physical markets.
Tokenized silver, where to from here?
Monthly transfer volumes for tokenized versions of the iShares Silver Trust have increased approximately 1,200%, according to blockchain data, as silver prices reached record levels above $80 per ounce in 2025.
The surge in on-chain activity coincides with silver’s sharp price appreciation this year, which has outperformed gold and broken through multi-decade resistance levels, according to market data.
Total market capitalization for tokenized silver products has exceeded $300 million, reaching an all-time high, according to industry tracking services. The increased transfer volumes indicate active trading, rotation and positioning activity rather than passive holding, market observers noted.
Physical silver prices have climbed sharply in 2025, driven by supply constraints and continued industrial demand from the solar power sector, according to commodity analysts. Markets have also begun pricing in potential U.S. interest rate cuts, a macroeconomic environment that historically supports precious metals prices.
Physical market conditions show signs of tightness, with reports of double-digit premiums in parts of Asia and low inventory levels, according to regional dealers. The divergence between physical availability and paper pricing has contributed to interest in alternative exposure methods, including tokenized assets, analysts said.
Market participants have exhibited varied behavior during the rally. Some retail investors have reportedly shifted allocations from cryptocurrencies to physical metals, while others have utilized tokenized silver to gain price exposure without storage or transportation requirements, according to trading platform data.
Tokenized assets offer 24-hour settlement and immediate response to price movements, features not available through traditional commodity vehicles, industry participants noted.
The rapid price advance has prompted caution among some analysts, who noted that sharp rallies in commodity markets have historically triggered profit-taking. Regulatory responses, such as margin requirement adjustments by exchanges including CME Group, have previously led to abrupt reversals in commodity prices, according to market history.
The growth in tokenized silver volumes represents increasing adoption of blockchain infrastructure for accessing traditional assets, particularly during periods of inflation concerns and supply stress, according to digital asset analysts. The trend suggests tokenization is expanding beyond cryptocurrency-native applications into traditional commodity markets, industry observers said.
