Crypto backed by gold is a rare bright spot this year as investors respond to the volatile stock market and stagflation fears. Cryptocurrencies backed by gold are an increasingly popular alternative for traders seeking to escape increasing market instability and the looming threat of stagflation. The two top gold-backed cryptocurrencies, PAX Gold and Tether Gold, together surpassed $1 billion in market capitalization this week—a 60% increase from the same period last year, CoinDesk reported, citing a report from Arcane Research, which tracks cryptocurrencies. Both cryptocurrencies reached highs Tuesday before retreating after stocks rebounded.