Why did the price of PAXG fall?

PAX Gold (PAXG) dropped 1.16% in the last 24 hours to $3,733.75, underperforming compared to gold’s overall steady price. The main reasons are:

1. Competition in tokenized gold – Tether’s XAUT token surpassed PAXG as the largest digital gold asset, reducing demand for PAXG (Crypto.News).
2. Crypto market decline – The total cryptocurrency market value fell 1.39%, leading investors to reduce holdings in gold-linked tokens.
3. Technical price correction – Indicators showed PAXG was overbought near $3,800, prompting some investors to take profits.

Deep Dive

1. Competition in Tokenized Gold (Negative Impact)

Overview:
On August 8, Tether Gold (XAUT) minted 129,047 new tokens worth $436.9 million, increasing its supply by 20% in just one day. This helped XAUT overtake PAXG in market size. The number of XAUT holders has grown 173% this year, compared to PAXG’s 29%, narrowing Paxos’ lead in this space (CEX.io report).

What this means:
XAUT’s rapid growth is dividing demand for tokenized gold assets. PAXG’s 24-hour trading volume ($25.7 million) is lower than XAUT’s recent spikes, showing traders are shifting their interest.

What to watch:
PAXG’s ability to keep trust from institutions, supported by New York Department of Financial Services (NYDFS) regulation, and to grow its presence in decentralized finance (DeFi) platforms like Curve’s XAUT-PAXG pool.

2. Crypto Market Decline (Mixed Impact)

Overview:
The overall cryptocurrency market dropped 1.39% in the past day, while Bitcoin’s share of the market increased to 57.83%. PAXG’s 1.16% decline was slightly better than the broader market but reflects investors’ reduced willingness to take risks.

What this means:
Gold-backed tokens often see selling pressure when the crypto market pulls back, as investors prefer to hold more liquid assets. However, PAXG’s 30-day gain of +11.07% indicates this dip is likely temporary.

3. Technical Price Correction (Neutral Impact)

Overview:
PAXG hit resistance at $3,800 on September 22, which led to a price pullback. The 7-day Relative Strength Index (RSI) was high at 80.59, signaling the asset was overbought. The MACD indicator (+2.28) also suggests momentum is weakening.

What this means:
Investors likely took profits after PAXG’s 1.92% gain over the past week. Support around $3,600 (the 50-day moving average) could help stabilize the price if gold itself remains steady.

Conclusion

PAXG’s recent price drop is due to competition in tokenized gold, overall crypto market trends, and normal profit-taking—not a sign of weakness in gold itself, which is up 40.65% year-over-year.

Key question: Will PAXG break back above $3,800 as real-world asset (RWA) adoption grows, or will XAUT’s expansion push prices lower? Keep an eye on how gold prices react to U.S. tariff changes and Federal Reserve interest rate decisions.

What could affect the price of PAXG?

The price of PAX Gold (PAXG) depends on gold’s reputation as a safe investment, how widely cryptocurrencies are adopted, and competition from similar tokens.

1. Gold Price Fluctuations – Economic uncertainty increases demand, but tariffs and policy changes add risks.
2. Competition from Other Tokenized Gold – Tether’s XAUT has overtaken PAXG in market value, challenging its position.
3. Use in Decentralized Finance (DeFi) – Growing use as collateral could improve PAXG’s usefulness and liquidity.

Deep Dive

1. Economic Uncertainty & Gold Demand (Mixed Effects)

Overview:
PAXG’s value closely follows the price of physical gold, which hit $3,534 per ounce in August 2025 after the U.S. imposed tariffs on imported gold bars. Later, the White House clarified these policies, easing supply concerns and causing prices to drop. Meanwhile, global moves away from the U.S. dollar—like BRICS countries buying more gold—and tensions in the Middle East continue to support gold prices.

What this means:
PAXG could increase in value if gold prices stay above $3,500 per ounce. However, sudden policy changes, like removing tariffs or interest rate hikes, could slow this growth. Keep an eye on gold futures and central bank gold purchases for signs of change.

2. Competition from Tokenized Gold (Potential Downside)

Overview:
Tether’s XAUT token surpassed PAXG as the largest tokenized gold asset by market cap in August 2025 ($833 million vs. PAXG’s $871 million), with XAUT’s user base growing 173% this year compared to PAXG’s 29%. XAUT’s rapid token issuance (minting $436 million in one day) and lower fees increase competitive pressure.

What this means:
PAXG risks losing market share unless its issuer, Paxos, expands exchange listings or makes it easier to redeem tokens for physical gold. The shrinking gap between users (CEX.io report) highlights the need for strategic moves.

3. DeFi Integration & Regulatory Support (Positive Outlook)

Overview:
PAXG is being integrated into decentralized finance platforms like Aave and Curve, as well as institutional funds such as BlackRock’s BUIDL fund, showing its growing role in the $26 billion Real-World Asset (RWA) sector. Regulatory clarity, such as Texas recognizing gold as legal tender and oversight by the New York Department of Financial Services (NYDFS), adds credibility.

What this means:
Greater use of PAXG as collateral in DeFi could boost demand. However, Ethereum’s high transaction fees and scalability challenges might limit growth. Watch for PAXG’s potential inclusion in exchange-traded fund (ETF)-like products.

Conclusion

PAXG’s future depends on balancing gold’s economic appeal with competition from XAUT and the evolving DeFi landscape. While geopolitical risks and growth in tokenized real-world assets offer opportunities, competitive pressures and Ethereum’s technical limits present challenges. Will PAXG’s regulatory advantages outweigh Tether’s rapid expansion? Monitor on-chain holder data and gold’s reaction to Federal Reserve policies for insights.

What are people saying about PAXG?

PAX Gold (PAXG) is gaining attention as a digital asset backed by physical gold, blending the safety of gold with the flexibility of decentralized finance (DeFi). Here’s what’s happening now:

1. Traders are watching the $3,900 level as uncertainty in the economy drives demand for gold-backed tokens.
2. Institutional confidence grows as Paxos highlights the combination of blockchain technology and physical gold.
3. Tether’s XAUT token surpasses PAXG in market value, sparking competition between the two.

Deep Dive

1. Technical Analysis Points to $3,900 Target

@genius_sirenBSC notes that PAXG is holding steady at $3,600 support. If it breaks above $3,800, it could rally about 3.5% to reach $3,900, reflecting gold’s recent 12% monthly price increase.
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What this means: This is a positive sign for PAXG. The rising price of physical gold (up 11.56% over the past 30 days) combined with clear price levels suggests strong fundamentals supporting the token.

2. Institutional Adoption Boosts Confidence

Paxos, the company behind PAXG, emphasizes that this token represents investment-grade physical gold with all the benefits of blockchain technology.
@Paxos highlights their regulatory compliance (regulated by the New York Department of Financial Services) and backing from PayPal Ventures, which appeals to traditional investors entering the crypto space.
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What this means: This builds trust in PAXG, making it attractive to institutions looking for secure, regulated digital assets tied to real-world value.

3. Market Competition from Tether’s XAUT

According to Coin Edition, Tether’s gold-backed token, XAUT, has recently surpassed PAXG in market capitalization after minting $436 million worth of tokens. However, PAXG still has about seven times more holders.
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What this means: This is a neutral development for PAXG. While competition is increasing, PAXG maintains stronger liquidity, with daily trading volumes of $67.9 million compared to XAUT’s $14.5 million, helping it hold a solid position in the market.

Conclusion

Overall, the outlook for PAXG is cautiously optimistic. The rising price of gold and institutional support provide strong tailwinds, but competition from tokens like XAUT means PAXG’s market dominance should be watched closely. Key levels to watch include the $3,800 resistance—breaking above this could signal continued momentum for PAXG. Also, keep an eye on how physical gold prices react to changes in Federal Reserve policies, as this will impact PAXG’s performance.

What is the latest news about PAXG?

PAX Gold (PAXG) leverages gold’s reputation as a safe investment while competing with Tether’s XAUT in the growing market for tokenized gold. Here’s the latest update:

1. Price Jump with Gold Rally (September 22, 2025) – PAXG reached $3,745, up 12% so far this year, as more institutions look to invest in real assets.
2. Leader in Real-World Asset Market (August 21, 2025) – Security firm CertiK named PAXG a top protocol in the $26 billion real-world asset space.
3. XAUT Surpasses PAXG in Market Value (August 11, 2025) – Tether’s gold token overtook PAXG after minting $437 million worth of tokens in one day.

In-Depth Look

1. Price Jump with Gold Rally (September 22, 2025)

What happened:
PAXG traded at $3,745 with a market value of $1.09 billion, rising 12% this year. This growth is driven by institutional investors seeking exposure to tokenized gold. The price closely follows physical gold, which increased 11% in 2025 due to global economic uncertainty and moves by BRICS countries to reduce reliance on the U.S. dollar.

Why it matters:
This trend is positive for PAXG, reinforcing its position as a digital version of gold. However, prices might face resistance near $3,800 unless physical gold prices continue to climb. (@genius_sirenBSC)

2. Leader in Real-World Asset Market (August 21, 2025)

What happened:
CertiK’s mid-2025 report highlighted PAXG as a leading protocol in the Real-World Asset (RWA) sector, noting its market cap over $1 billion, regular audits, and secure storage through Brink’s vaults. The RWA market itself grew 260% this year, reaching $26 billion.

Why it matters:
This recognition strengthens PAXG’s reputation as a bridge between traditional finance and decentralized finance (DeFi). Still, competition is heating up, especially with BlackRock’s BUIDL fund managing $2.9 billion. (Phemex)

3. XAUT Surpasses PAXG in Market Value (August 11, 2025)

What happened:
Tether’s XAUT token surpassed PAXG’s market cap after minting 129,000 tokens worth $437 million in a single day. XAUT’s number of holders grew 173% this year, compared to PAXG’s 29%, though PAXG still has seven times more users overall.

Why it matters:
This development is neutral for PAXG. While XAUT’s rapid growth shows the market is maturing, PAXG’s regulatory approval from the New York Department of Financial Services (NYDFS) and backing from PayPal Ventures give it a strong foundation for long-term success. (CoinMarketCap)

Conclusion

PAXG benefits from gold’s strong market position and growing adoption of real-world assets but faces tough competition from Tether’s XAUT. The key question is whether Paxos’ regulatory advantages and institutional partnerships can outpace Tether’s aggressive token issuance as tokenized gold challenges traditional gold ETFs.

What is expected in the development of PAXG?

PAX Gold’s roadmap is focused on making the token more useful and compliant with regulations.

1. Better DeFi Integration (Q4 2025) – Expanding partnerships with lending platforms and liquidity pools.
2. Multi-Chain Expansion (2026) – Making PAXG available on other blockchains like Solana and Polygon.
3. Institutional Custody Improvements (Q1 2026) – Partnering with vault providers and improving redemption processes for institutions.

Deep Dive

1. Better DeFi Integration (Q4 2025)

Overview:
PAX Gold plans to increase its presence in decentralized finance (DeFi) by adding more liquidity on platforms such as Uniswap V4 and Aave. Recent voting shows support for using PAXG as collateral, benefiting from its gold-backed stability.

What this means:
This is positive for PAXG because more DeFi use could increase demand for tokenized gold as a stable asset. However, high Ethereum transaction fees and competition from Tether Gold (XAUT) are potential challenges.

2. Multi-Chain Expansion (2026)

Overview:
Paxos intends to launch PAXG on other blockchains like Solana and Polygon to lower transaction costs and make it easier to use. This follows Bitso’s 2022 integration of PAXG, which helped grow adoption in Latin America (source).

What this means:
Making PAXG available on multiple blockchains could attract more users, especially in areas where gold is popular but Ethereum access is limited. Risks include splitting liquidity and possible security issues with cross-chain bridges.

3. Institutional Custody Improvements (Q1 2026)

Overview:
Paxos is working with vault companies like Brink’s and Loomis to expand secure storage options in Asia and Europe. They’re also upgrading APIs to allow institutions to redeem PAXG instantly, which is important for large investors.

What this means:
Better redemption options build trust and could encourage more institutional use. However, if many institutions sell at once during market drops, it might put downward pressure on prices.

Conclusion

PAX Gold’s roadmap aims to improve both accessibility and trust by combining DeFi growth with strong institutional support. While competition from XAUT and gold’s price swings remain challenges, PAXG’s regulatory approval (NYDFS) gives it a competitive advantage. It will be interesting to see how gold’s role in Web3 develops beyond just being a store of value.

What updates are there in the PAXG code base?

PAX Gold’s recent updates focus on improving infrastructure and adding new exchange options.

1. Futures Contract Update (May 2025) – BTSE made the PAXG-PERP futures contract smaller for easier trading.
2. WOO X Exchange Listing (April 2025) – PAXG was added as an ERC-20 token, allowing spot trading on WOO X.
3. Ongoing Smart Contract Audits – Monthly third-party checks confirm that each PAXG token is backed by real gold.

Deep Dive

1. Futures Contract Update (May 2025)

What happened: BTSE reduced the size of the PAXG-PERP futures contract from 0.01 to 0.0001. This means traders can now buy and sell smaller amounts, making it easier for both casual and professional traders to participate.

The update went live on May 18, 2025, after a short maintenance break. Users needed to restart any trading bots they were using.

Why it matters: This change doesn’t affect the PAXG token itself but makes trading more flexible. It’s a technical improvement that helps traders but doesn’t change how PAXG works.
(Source)

2. WOO X Exchange Listing (April 2025)

What happened: PAXG was listed on the WOO X exchange as an ERC-20 token, which is a common Ethereum token standard. This allowed users to deposit PAXG and start spot trading (buying and selling immediately) against USDT starting April 14, 2025.

Withdrawals were delayed by one day initially for security checks.

Why it matters: Being available on more exchanges usually helps a token gain more users and better price discovery. For PAXG, this means more people can easily buy and sell it, supporting its role as a stable store of value backed by gold.
(Source)

3. Ongoing Smart Contract Audits

What happened: Paxos, the company behind PAX Gold, continues to have independent firms audit PAXG’s smart contracts every month. These audits check that each token is fully backed by real gold stored in secure vaults certified by the London Bullion Market Association (LBMA).

Recent audits found no major issues but included small improvements to reduce transaction costs on the Ethereum network.

Why it matters: Regular audits build trust by proving that PAXG tokens truly represent physical gold. This transparency sets PAXG apart from some competitors and reassures users about its value.
(Source)

Conclusion

PAX Gold’s updates focus on expanding where it can be traded and maintaining trust through regular audits. While the core technology behind PAXG hasn’t changed much, these improvements support its growth and reliability. Looking ahead, it will be interesting to see how PAXG adapts as more Ethereum Layer 2 solutions become popular for tokenized assets.