Spot Silver Outperforms Bitcoin, Is Tokenized Silver Worth Allocating to?

Original Article Title: "Silver Surges, Can Tokenized Silver Further Leverage?"

Original Article Author: Wenser, Odaily Planet Daily

Silver, once known as the "poor man's gold," is currently making waves in the global market with its astonishing price surge.

Recently, the silver price briefly surpassed $117 per ounce, reaching a historical high. As of now, since the 2017 crypto peak, silver has officially outperformed Bitcoin's price surge by about 517%, as well as gold's surge (slightly below 300%). According to data from 8marketcap website, the silver price is now around $110, with a market cap of $6.18 trillion, ranking second in global assets, only behind gold. Such an amazing trend naturally sparked market enthusiasm. Apart from buying silver ETFs or physical silver through traditional brokers or offline stores, tokenized silver may also be an option, especially through trading platforms and on-chain Perp DEX leverage contracts.

Tokenized Silver Status: Only 2 Assets with Relatively Good Liquidity

According to Coingecko website data, the overall market cap of tokenized silver is currently around $446 million, with a 24-hour gain of about 5.6%; specifically, the two silver tokens with relatively good liquidity are as follows:

Kinesis Silver (KAG): Market Cap currently around $406 million

Similar to the gold token KAU, the KAG silver token is introduced by Kinesis, a UK-based digital asset utility platform registered in the Cayman Islands. Main trading platforms include Kinesis Money, BitMart, UAE exchange Emirex, among others.

It is understood that KAG is backed by a fully insured and regularly audited vault (globally distributed storage), with each token pegged to 1 ounce of investment-grade silver; it supports global real-time payments; supports physical silver redemption; and has no storage fees.

Its potential risks are similar to Tether's issuance of XAUT gold token, relying heavily on the issuer's asset credibility and facing some regulatory uncertainty. In addition, due to its relatively small market cap size, the market depth is average, and market fluctuations may lead to premiums or discounts, making it more reliant on exchange platform order matching.

However, regardless, data from the Coingecko website shows that the KAG 24-hour trading volume is approximately around $5.5 million, making it the second largest in the silver-backed token market.

iShares Silver Trust (SLV): Market Cap Currently at $39.5 Million

The iShares Silver Trust launched by Ondo Finance is an asset-backed silver token that holds the underlying physical silver through the BlackRock iShares Silver Trust (SLV) ETF.

Its strengths lie in tracking a regulated traditional SLV ETF, good liquidity, supporting instant minting or redemption (for non-U.S. users), combining traditional finance with blockchain convenience, institutional-grade endorsement, and not having to deal directly with physical silver.

Its potential risks include mainly relying on the creditworthiness of issuers such as BlackRock, Ondo, etc., not being able to support full ownership of physical silver or direct redemption, incurring certain ETF fund management costs, trading restrictions for U.S. users, and facing potential securities regulation constraints.

Main trading platforms include Gate, Bitmart, Bitget, AscendEX, and other centralized exchanges.

It is worth mentioning that SLV also supports futures trading, with leverage of up to 10x.

According to Coingecko data, the 24-hour trading volume of SLVON is approximately $21.2 million, ranking first in the silver-backed token market.

In addition to the two major silver-backed tokens, KAG and SLVON, other silver-backed tokens such as Silver rStock (SLVR) launched by the Solana-based stock tokenization platform Remora Market and Gram Silver (GRAMS) anchoring 1 gram of silver launched by Token Teknoloji A.Ş. are also spot tokens, but they have very low market capitalization and liquidity. Compared to KAG and SLVON, the price spread between them and physical silver is greater, so trading is not recommended.

Silver Leverage Trading Platforms: Hyperliquid, Binance, Bitget, and other trading platforms

In addition to spot silver-backed tokens, many U.S. stock tokenization trading platforms, on-chain Perp DEX, CEX, DEX have now opened silver-related leveraged contract trading, supporting leverage of up to 20-100x. Below are specific trading platforms for readers' reference:

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