Tokenized Silver Volumes Jump 1,200% as Prices Hit Record Highs

Activity in tokenized silver markets has surged dramatically over the past month, tracking closely with a historic rally in the underlying metal. 

On-chain data shows that transfer volumes tied to tokenized silver products have jumped more than 1,200% in the last 30 days, reflecting heightened interest as silver prices pushed to successive record highs and volatility spilled across both digital and traditional markets.

According to data from RWA.xyz, monthly transfer volume for Ondo Finance’s tokenized version of the iShares Silver Trust exceeded $100 million, marking one of the strongest growth spurts seen in the tokenized commodities space this year. 

Tokenized SLV transfer volumes (Source: RWA.xyz)

The surge was accompanied by a roughly 300% increase in the number of holders and a near 40% rise in net asset value.

The trend signals growing interest in blockchain-based representations of real-world assets as investors seek alternative ways to access commodity exposure amid market stress.

How Tokenization Is Expanding Access

Tokenization involves converting real-world assets — such as commodities, real estate, or funds — into digital tokens that can be issued, transferred, and settled on a blockchain. In the case of Ondo’s product, investors outside the United States can gain exposure to SLV with the ability to mint, redeem, and transfer tokens around the clock, bypassing some of the constraints associated with traditional market hours.

This structure has become increasingly attractive during periods of volatility, when price discovery and liquidity in conventional venues can become fragmented. The rise in tokenized silver volumes suggests that on-chain markets are beginning to act as a parallel liquidity venue rather than a niche alternative.

Physical Supply Pressures Mount

Silver’s rally has been driven by mounting stress in physical markets, where pricing dynamics have diverged sharply from futures. 

Analysts point to premiums in parts of Asia reaching double-digit levels over COMEX prices, while the London forward curve has slipped into backwardation — meaning silver is more expensive today than for future delivery. Such conditions typically signal acute near-term supply constraints.

Those pressures are expected to intensify after China announced plans to impose export licensing on refined silver starting Jan. 1, 2026. The move has raised concerns about global supply availability, given China’s role in industrial metals processing. 

Tesla founder Elon Musk weighed in on the decision this week, warning that restrictions could negatively affect industries reliant on silver for manufacturing and energy technologies.

Volatility Spikes After Record Highs

The tightening supply backdrop has coincided with extreme price volatility. 

Market commentator The Kobeissi Letter reported that silver surged to a record high of $83.75 before plunging to $75.15 just over an hour later, erasing roughly 10% of its value in a brief window. The sharp swing highlighted how crowded positioning and thin liquidity can amplify moves when markets are under strain.

Despite the turbulence, veteran gold and silver investor Peter Schiff noted that prices quickly recovered and argued that the broader bull market remains intact. He described the current phase as a historic rally that still has significant room to run, even if sharp pullbacks continue along the way.

Industrial Demand Remains Resilient

Beyond financial flows, silver continues to benefit from strong structural demand, particularly from the solar-power industry. 

Consumption tied to photovoltaic manufacturing has remained largely inelastic, even as prices have more than tripled since 2024. Analysts say this persistent industrial demand has limited downside moves and reinforced the metal’s appeal as both an investment asset and a critical input for clean energy infrastructure.

Higher futures margins and year-end positioning have also complicated trading in traditional markets, pushing some participants to explore alternative exposure through tokenized products.

Tokenized Markets Move In Lockstep With TradFi

As silver’s rally unfolds, activity in tokenized markets has closely mirrored developments in futures and exchange-traded funds. Some analysts view this alignment as evidence that tokenized versions of traditional assets are becoming a durable feature of global markets rather than a speculative experiment.

Crypto analyst Michael van de Poppe recently suggested that capital may eventually rotate from precious metals into Bitcoin, predicting a renewed push higher for the cryptocurrency. 

Data from CoinGecko shows Bitcoin briefly broke above $90,000 before pulling back.

For now, silver’s surge — both on-chain and off — is serving as a high-profile example of how tokenization is increasingly moving in step with traditional finance during periods of market stress.