What could affect the price of PAXG?
The price of PAX Gold (PAXG) depends largely on trends in the gold market, changes in regulations, and how widely cryptocurrencies are adopted.
- Gold Market Trends – Rising gold prices (+47% year-over-year) support PAXG’s value.
- Competition – Growth of Tether Gold challenges PAXG’s market position.
- Regulatory Environment – Oversight by New York regulators builds trust, but new rules could bring risks.
In-Depth Analysis
1. Gold’s Strong Market Performance (Positive for PAXG)
Overview:
PAXG is directly tied to the price of gold, which reached nearly $3,800 per ounce in September 2025. This increase was driven by expectations of interest rate cuts by the Federal Reserve, a weaker U.S. dollar, and global political uncertainties. The market value of tokenized gold rose to $2.88 billion, with PAXG seeing $40 million in net new investments last month.
What this means:
Since PAXG’s price follows gold’s value, continued demand for gold as a hedge against inflation and a safe investment could push PAXG’s price toward $4,000 if gold prices keep rising. On the other hand, if gold prices fall due to a stronger dollar or higher interest rates, PAXG’s price would likely drop as well.
2. Competition from Tether Gold (Mixed Effects)
Overview:
Tether Gold (XAUt) passed a $1 billion market cap in October 2025, creating a two-player market alongside PAXG. Tether Gold operates on six different blockchain networks, while PAXG is currently only on Ethereum. However, PAXG has a larger user base with 74,000 holders compared to Tether Gold’s 12,000, indicating stronger popularity among everyday investors (Coinspeaker).
What this means:
Competition could split the market’s liquidity, but PAXG’s strong regulatory compliance—such as monthly audits and approval from the New York Department of Financial Services—makes it a safer option for institutional investors. Expanding PAXG to other blockchains could help it compete better with Tether Gold’s technical advantages.
3. Regulatory Developments and DeFi Integration (Positive Outlook)
Overview:
The U.S. Securities and Exchange Commission’s (SEC) openness to tokenized assets as of September 2025, along with new stablecoin regulations under the GENIUS Act, may strengthen PAXG’s compliance status. Additionally, PAXG is increasingly being used on decentralized finance (DeFi) platforms like Aave and Curve, although trading volume remains relatively low.
What this means:
Clearer regulations could attract more institutional investors, and growing use in DeFi could increase PAXG’s usefulness. However, since PAXG doesn’t generate interest like some fiat-backed stablecoins, it may be less attractive for investors focused on earning yield.
Conclusion
PAXG’s price is expected to follow gold’s overall market trends, influenced further by crypto-specific factors such as competition and regulatory changes. Keep an eye on how gold reacts to Federal Reserve policies and monitor PAXG’s liquidity on blockchain networks. The key question remains: Will PAXG’s reputation for regulatory trust outweigh Tether Gold’s advantage of operating across multiple blockchains?
What are people saying about PAXG?
PAX Gold (PAXG) is drawing attention from traders looking for a breakout, but broader economic uncertainties have investors proceeding with caution. Here’s what’s happening:
- Traders are aiming for $3,900 if PAXG holds steady above $3,600
- Institutional investments hit a record high as the tokenized gold market approaches $3 billion
- Overbought signals warn of possible pullbacks despite little price movement
Deep Dive
1. @genius_sirenBSC: PAXG Could Reach $3,900 on Gold Rally — Bullish
“PAXG is trading around $3,745 with support at $3,600 – current economic conditions might push it up to $3,900.”
– @genius_sirenBSC (12.3K followers · 38K impressions · 2025-09-22 17:24 UTC)
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What this means: This outlook is positive for PAXG because it links price targets to gold’s strong 47% increase so far this year. PAXG acts as a bridge between the cryptocurrency world and traditional gold investors. The $3,600 support level matches the expected floor price for physical gold in 2025.
2. Yahoo Finance: Tokenized Gold Market Nears $3 Billion — Bullish
In September 2025, PAXG saw $40 million in net inflows alongside XAUT, driven by expectations of Federal Reserve interest rate cuts and a weaker U.S. dollar (source).
What this means: More institutional investors are adopting tokenized gold, with PAXG’s market value reaching $1.12 billion—a nearly 17% gain over the past 90 days. This reflects gold’s ongoing appeal as a safe investment during uncertain times.
3. Finbold: Overbought RSI Suggests Caution — Bearish
On September 5, 2025, PAXG’s 24-hour Relative Strength Index (RSI) hit 76.21, indicating the asset may be overbought even though its price remained flat (source).
What this means: This is a short-term warning sign that traders might start taking profits. With PAXG’s 30-day price volatility at 9.57%, it could face price drops if gold prices stall near $3,800.
Conclusion
The overall outlook for PAXG is optimistic over the long term but cautious in the short term. Investors are weighing gold’s strong economic support against technical signals that suggest the price may be stretched. Keep an eye on the $3,600 support level and upcoming U.S. jobs data later this week, as a stronger dollar could put pressure on gold-backed assets like PAXG.
What is the latest news about PAXG?
PAX Gold (PAXG) is benefiting from gold’s recent price surge but faces increasing competition. Here are the key updates:
- Market Cap Reaches $1.15 Billion (October 2, 2025) – PAXG’s value jumped as gold hit new record prices.
- Regulatory Advantage (October 4, 2025) – PAXG is regulated by New York’s Department of Financial Services (NYDFS), unlike competitor Tether Gold, which is linked to El Salvador.
- Trading Volume Increases (September 29, 2025) – PAXG saw $3.2 billion in monthly trading, driven by demand for safe investments.
In-Depth Look
1. Market Cap Reaches $1.15 Billion (October 2, 2025)
Summary:
According to a report audited by KPMG, PAXG’s market value hit $1.15 billion in August 2025. This growth is tied to gold’s 47% increase this year, reaching $3,800 per ounce. Both big investors and everyday buyers are turning to tokenized gold like PAXG to protect their money during uncertain times.
Why it matters:
This milestone shows how PAXG connects traditional gold investing with the digital world of cryptocurrencies. However, Tether Gold (XAUt) also crossed the $1 billion mark in October, setting up a close competition in the tokenized gold market. (Binance Square)
2. Regulatory Advantage (October 4, 2025)
Summary:
PAXG is issued by Paxos, a company regulated by the New York Department of Financial Services, with monthly audits to verify reserves. In contrast, Tether Gold is managed by a Tether subsidiary based in El Salvador and undergoes quarterly reserve checks.
Why it matters:
PAXG’s clear regulatory oversight may attract investors who prefer lower risk and more transparency. On the other hand, Tether Gold supports six different blockchains, compared to PAXG’s Ethereum-only setup, which might appeal more to users involved in decentralized finance (DeFi). (Yahoo Finance)
3. Trading Volume Increases (September 29, 2025)
Summary:
In September 2025, PAXG’s trading volume reached $3.2 billion, with $40 million in net inflows. This spike reflects investors seeking protection amid expectations of Federal Reserve interest rate cuts and concerns about U.S. government finances.
Why it matters:
The high trading volume shows PAXG’s strong liquidity, supported by 74,000 holders compared to Tether Gold’s 12,000. It also highlights gold’s recent price gains, which have outperformed Bitcoin’s 22% increase this year. (CoinDesk)
Conclusion
PAX Gold’s growth is driven by rising gold prices and strong regulatory support. However, competition from Tether Gold and the natural ups and downs of gold prices present challenges. The question remains: will PAXG’s New York DFS compliance help it stay the leader as more people adopt tokenized gold?
What is expected in the development of PAXG?
PAX Gold is focused on keeping its strong position in the tokenized gold market.
- Ongoing Regulatory Compliance
- Expanding Exchange Listings and Liquidity by Q4 2025
- Improving Redemption Options in 2026
In-Depth Look
1. Ongoing Regulatory Compliance
PAX Gold is regulated by the New York State Department of Financial Services (NYDFS), which means it must follow strict rules for audits and transparency. Every month, Withum, an independent auditor, confirms that each PAXG token is backed 1:1 by gold bars certified by the London Bullion Market Association (LBMA).
Why this matters:
This compliance is essential for building trust in PAXG, especially since it’s an asset-backed token. While this is standard practice, it gives PAXG an edge over competitors like Tether Gold (XAUt), which operates under less strict regulations in El Salvador (Coinspeaker).
2. Expanding Exchange Listings and Liquidity by Q4 2025
PAX Gold has recently been listed on exchanges like WOO X (April 2025) and Bitso, making it easier for more people to buy and sell. In September 2025, PAXG’s daily trading volume reached $67 million, compared to XAUt’s $23 million. PAXG also has a larger user base with 74,000 holders versus XAUt’s 12,000 (Yahoo Finance).
Why this matters:
Higher liquidity means it’s easier to trade large amounts without affecting the price, which attracts big investors. However, XAUt’s support across multiple blockchains like Ethereum, Tron, and TON gives it an advantage in reaching everyday users.
3. Improving Redemption Options in 2026
Paxos currently lets PAXG holders exchange their tokens for physical gold bars (starting at 50 tokens) or cash. They plan to make it easier to redeem smaller amounts, even less than one token, which could open up access to more people.
Why this matters:
If successful, this would connect the cryptocurrency world with traditional gold markets more smoothly. Challenges include managing the logistics of small redemptions and possible changes to storage fees.
Conclusion
PAX Gold’s plan focuses on building trust through regulation, increasing accessibility via more exchange listings, and enhancing usefulness with flexible redemption options. While no big technical upgrades are planned, competition with XAUt is likely to push innovation in tokenized gold. One question to watch: How will PAXG use decentralized finance (DeFi) tools to compete with XAUt’s multi-chain presence?
What updates are there in the PAXG code base?
I wasn’t able to find enough information to answer this question right now. The CoinMarketCap team is continuously updating my crypto knowledge, so I expect to have the details soon. Meanwhile, feel free to choose another question or cryptocurrency for analysis.