Core Insights - In decentralized finance (DeFi), traders previously lacked options during market downturns, primarily relying on stablecoins for liquidity [1] - The recent sell-off in the crypto market on October 10, 2025, resulted in $19 billion in long positions being liquidated, yet stablecoins only saw a modest 2% increase in market cap to over $303 billion [2] - The on-chain commodities sector, particularly tokenized gold, has shown significant growth, with a 27% increase in October alone, contrasting with the overall crypto market decline [3] Market Trends - The on-chain gold sector's market capitalization rose from $2.4 billion to over $2.6 billion between October 9 and October 13, 2025, and has increased from $1 billion at the start of the year to over $3 billion [4] - Gold prices have surged dramatically, from $2,624.49 per troy ounce on January 1 to $4,065.81 on November 18, driven by global political instability and a weakening U.S. dollar [5] - DeFi investors, typically known for higher risk tolerance, are increasingly investing in gold, which is stabilizing the market amid the broader crypto downturn [6]