Why did the price of PAXG go up?

PAX Gold (PAXG) increased by 1.44% to $4,261.46 over the past 24 hours, outperforming the overall cryptocurrency market, which dropped by 2.05%. This gain extends PAXG’s 30-day rally to 15.47%. The main factors behind this rise include:

1. Gold hitting record prices – Physical gold reached $4,218 per ounce on October 15, boosting demand for gold-backed tokens.
2. Large investors buying in – Two major crypto holders purchased over $30 million worth of gold-backed tokens, including PAXG.
3. Strong buying momentum – PAXG’s 24-hour Relative Strength Index (RSI) hit 87.16, indicating very high buying activity.

Deep Dive

1. Gold’s Historic Rally (Positive for PAXG)

Physical gold prices set new records three days in a row from October 13 to 15, peaking at $4,218 per ounce (TradingView). Since PAXG is designed to match the price of gold exactly, it followed this upward trend as investors looked for a way to invest in gold through cryptocurrency.

Why this matters: The rise in gold prices reflects broader economic uncertainty, such as trade tensions and fluctuations in the U.S. dollar. Investors often turn to gold as a safe investment during uncertain times. PAXG offers the stability of gold combined with the convenience of crypto, including the ability to trade 24/7. This has led to a daily trading volume of $423 million for PAXG.

What to watch: Whether gold can stay above $4,200 per ounce and how the U.S. dollar index (DXY) moves in the coming days.

2. Large Investors Buying Tokenized Gold (Positive for PAXG)

On October 15, blockchain analytics firm Lookonchain reported that two large crypto investors, known as whales, bought more than $30 million worth of gold-backed tokens. One whale purchased 2,879 PAXG tokens, valued at $12.1 million, from the address 0xdfcA (Yahoo Finance).

Why this matters: These big purchases suggest that institutional investors see PAXG as a way to protect their assets against the ups and downs of the crypto market. PAXG’s market value is now $1.32 billion, making it the largest tokenized gold asset, ahead of Tether’s XAUt, which is valued at $1 billion.

What to watch: The flow of PAXG tokens on exchanges to see if these whales are buying more or selling off.

3. Technical Indicators Show Overbought Conditions (Potential Risk)

PAXG’s 24-hour RSI reached 87.16 on October 15 (Finbold), well above the typical “overbought” level of 70. The price also rose above its 200-day exponential moving average (EMA) of $3,431, indicating strong upward momentum but also a stretched price.

Why this matters: While the current trend favors buyers, such high RSI levels often come before a price pullback. PAXG’s price near $4,261 is close to a key resistance level at $4,218, which could lead some investors to take profits.

What to watch: If PAXG falls below $4,200, it might test support around $4,103.

Conclusion

PAXG’s recent price increase is driven by gold’s strong performance, significant purchases by large investors, and strong buying momentum. However, technical signals suggest caution, as the token may be overbought and due for a short-term correction. PAXG remains a popular choice for those looking to hedge against crypto market volatility, but investors should watch for signs of cooling momentum.

Key points to monitor: Can PAXG stay above $4,200 if gold prices stabilize? Keep an eye on gold futures (GC=F) and whether PAXG’s RSI drops below 80 for clues on the next move.

What could affect the price of PAXG?

The price of PAX Gold (PAXG) depends largely on gold’s performance, changes in regulations, and how much risk investors are willing to take in the crypto market.

1. Gold’s all-time high momentum – PAXG is tied to physical gold, which reached $4,218 per ounce on October 15.
2. Regulatory oversight – Supervision by New York’s Department of Financial Services (NYDFS) builds trust but may slow growth.
3. Competition from tokenized gold – Tether’s XAUT, with a $1 billion market cap, is a strong competitor to PAXG.

Deep Dive

1. Gold’s Macro Rally (Positive for PAXG)

Overview: The price of physical gold has increased by 59% compared to last year, driven by geopolitical tensions like U.S.-China trade issues and strong demand from large investors. Since PAXG is backed 1:1 by physical gold, it acts like a digital version of gold bullion. Its market value has grown 27% in the past two months. In October 2025, large investors put over $30 million into tokenized gold.
What this means: If gold prices keep rising, PAXG could reach between $4,500 and $4,850 based on technical price levels called Fibonacci extensions. However, if gold prices pull back due to being overbought (as warned by the World Gold Council), PAXG could drop 5-10%.

2. Regulatory and Competitive Factors (Mixed Effects)

Overview: PAXG’s regulation by NYDFS makes it attractive to institutional investors but limits its ability to expand across multiple blockchain platforms. In contrast, Tether’s XAUT operates on six blockchains and has seen its number of holders grow 173% in 2025, compared to PAXG’s 29%, according to CoinGecko.
What this means: Clear regulations benefit PAXG in the long run, but Tether’s aggressive minting of XAUT tokens ($437 million in August alone) could take market share away. Also, PAXG is only available on Ethereum, which limits its use in decentralized finance (DeFi) compared to XAUT’s ability to move across different blockchains.

3. Technical Overextension Risk (Short-Term Caution)

Overview: On October 15, PAXG’s Relative Strength Index (RSI) reached 88.9, indicating it was highly overbought—the highest since June 2025. At the same time, futures traders reduced their positions by nearly 20% as they took profits after PAXG broke above $4,200.
What this means: If gold prices stall, PAXG might fall back to around $3,943, a key support level. However, the 200-day moving average at $3,428 suggests the overall trend remains positive.

Conclusion

PAXG’s value closely follows gold’s broader market trends but can be volatile due to factors unique to cryptocurrency. Keep an eye on the Federal Reserve’s meeting on October 30, which could affect gold prices and PAXG’s support level at $4,100. The big question is: Will PAXG’s appeal to institutions outweigh XAUT’s advantage of operating on multiple blockchains?

What are people saying about PAXG?

PAX Gold (PAXG) is benefiting from rising gold prices as traders look for key breakout points. Here’s what’s happening now:

1. Technical analysis suggests PAXG could surpass $3,800 if gold remains strong
2. Institutional confidence and growing use in decentralized finance (DeFi) support a positive outlook
3. Competition with Tether Gold sparks discussions about transparency and trust

In-Depth Look

1. Market Analyst @genius_sirenBSC Sees PAXG Reaching $3,900 on Gold Rally Bullish

"Support at $3,600, resistance at $3,800 – if gold trends continue, PAXG could hit yearly highs, especially with ongoing ETF investments"
– @genius_sirenBSC (3.2K followers · 12K impressions · Sept 22, 2025)
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What this means: This is positive news for PAXG since physical gold reached $4,218 per ounce on October 15, 2025 (Yahoo Finance), which tends to push the value of gold-backed tokens higher.

2. DeFi Expert @DefiIgnas Highlights Yield Challenges for PAXG Neutral

"Gold-backed stablecoins don’t offer Treasury yields – their growth depends on DeFi platforms like Aave and Curve, which now offer 2-9% annual returns"
– @DefiIgnas (21K followers · 89K impressions · June 18, 2025)
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What this means: This is a neutral point for PAXG. While integrations with DeFi platforms like Aave’s XAUt (CoinGecko) increase usefulness, PAXG’s 0.25% redemption fee might discourage short-term traders compared to tokens that pay higher yields.

3. Coin Edition Reports on Transparency Battle Between PAXG and Tether Gold Mixed

"PAXG’s audits by New York regulators attract institutional investors, but Tether Gold’s support across multiple blockchains has led to 173% growth in holders compared to PAXG’s 29% in 2025"
– Coin Edition (425K monthly readers · June 13, 2025)
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What this means: Sentiment is mixed. PAXG’s $1.3 billion market cap (CoinMarketCap) shows strong market presence, but Tether Gold’s rapid expansion across different blockchain networks poses a competitive threat.

Conclusion

Overall, the outlook for PAXG is cautiously optimistic. It benefits from gold’s reputation as a safe investment but faces challenges unique to crypto, like competition for yield. Keep an eye on the market cap ratio between PAXG and Tether Gold (currently about 1.3 to 1) to see which tokenized gold option gains more institutional support. The big question: will ongoing economic uncertainty push both tokens’ market caps beyond $2 billion?

What is the latest news about PAXG?

PAX Gold (PAXG) is benefiting from gold’s recent price surge but shows signs of reaching a technical limit. Here’s the latest update:

1. Big Investors Buy $30M in Gold Tokens (October 15, 2025) – Large crypto investors, known as whales, purchased $30 million worth of Tether’s XAUt token, showing strong interest in gold-backed digital assets, with PAXG leading the market.
2. PAXG Overbought After Gold Rally (October 15, 2025) – The Relative Strength Index (RSI) for PAXG hit 87.16, indicating it may be overbought after a 5% increase in one week.
3. PAXG Stays Stable During $19B Crypto Market Drop (October 11, 2025) – While the overall crypto market fell sharply, PAXG only dropped 0.23%, highlighting its appeal as a safer investment.

In-Depth Look

1. Big Investors Buy $30M in Gold Tokens (October 15, 2025)

What happened:
Gold prices reached new highs between $4,117 and $4,218 per ounce in mid-October. This pushed crypto whales to buy $30 million worth of Tether’s XAUt token. Although PAXG wasn’t directly part of this purchase, it remains the largest gold-backed token by market value ($1.31 billion compared to XAUt’s $1 billion). Tokens like PAXG offer investors a way to own gold digitally without needing to store physical gold, and they can be traded 24/7.

Why it matters:
This shows strong demand for gold-backed crypto tokens but also highlights competition between PAXG and XAUt. PAXG’s strong regulatory oversight and regular audits by Paxos may help it keep its leading position if gold prices continue to rise. (Lookonchain)

2. PAXG Overbought After Gold Rally (October 15, 2025)

What happened:
PAXG’s RSI, a measure used to identify if an asset is overbought or oversold, jumped to 87.16 (above the typical overbought level of 70). This happened as traders bought aggressively during uncertain economic times. PAXG’s price rose 5% over the week to $4,213.22, closely following gold’s price increase but with less price fluctuation.

Why it matters:
An RSI this high often signals that a price drop could be coming soon. Traders should watch if PAXG’s price stabilizes around $4,200 and keep an eye on gold’s price, which is also showing signs of being overbought according to the World Gold Council. (Finbold)

3. PAXG Stays Stable During $19B Crypto Market Drop (October 11, 2025)

What happened:
On October 11, the crypto market experienced a massive sell-off, losing $19 billion in value. During this, PAXG’s price fell only 0.23% to $3,998, while Bitcoin dropped 8.5%. Other cryptocurrencies like XRP saw much larger losses before recovering. This shows PAXG’s strength as a safer asset during market turmoil. It has gained over 50% so far this year.

Why it matters:
This stability supports the idea that PAXG can act as a hedge during crypto market crashes. However, since gold itself is currently overbought (trading 25% above its 40-week average), PAXG’s price gains might slow down until the broader market calms. (CoinDesk)

Conclusion

PAX Gold (PAXG) is positioned as a hybrid safe-haven asset combining gold’s stability with crypto’s accessibility. However, it faces challenges from gold’s rapid price rise nearing a peak and its own overbought technical signals. While more institutions are adopting tokenized gold, it remains to be seen if PAXG can separate from gold’s price swings if the metal’s value corrects. Watch the $4,200 support level and RSI trends for signs of what’s next.

What is expected in the development of PAXG?

PAX Gold's roadmap is focused on making the token easier to use and more widely accepted.

1. Multi-Chain Expansion (Q4 2025) – Planning to support blockchains beyond Ethereum.
2. Enhanced DeFi Collateral Use (2026) – More partnerships with decentralized finance platforms.
3. Institutional Redemption Network (2026) – Easier ways for institutions to convert PAXG into physical gold.

Deep Dive

1. Multi-Chain Expansion (Q4 2025)

Overview: Right now, PAX Gold (PAXG) runs only on Ethereum as an ERC-20 token. Competitors like Tether Gold are already available on multiple blockchains, such as Solana and Polygon. Paxos is considering adding support for these networks to improve liquidity and lower transaction fees.

What this means: This is good news for PAXG users because it could attract more people who avoid Ethereum due to its high fees. However, technical challenges or delays could slow down this expansion.

2. Enhanced DeFi Collateral Use (2026)

Overview: PAXG is already accepted on some decentralized finance (DeFi) platforms like Aave and Fluid. There are plans to increase its use in DeFi, including partnerships with lending protocols to create PAXG vaults that earn interest (DeFiIgnas, June 2025).

What this means: This could increase demand for PAXG, but since gold itself doesn’t generate yield like some other crypto assets (for example, staked ETH), the excitement might be limited.

3. Institutional Redemption Network (2026)

Overview: Paxos wants to make it easier for large investors to exchange PAXG tokens for physical gold bars through a global network of partners. Currently, minimum redemption amounts are high (e.g., 50 tokens for Tether Gold), so there’s room to improve.

What this means: This could encourage more institutions to use PAXG if the process becomes smoother. However, there are risks related to regulations and managing physical gold securely.

Conclusion

PAX Gold’s roadmap aims to combine the stability of gold with the flexibility of cryptocurrency by improving infrastructure and expanding use cases. Multi-chain support and deeper DeFi integration are promising developments, but challenges remain. The key question is whether PAXG’s regulatory advantages will help it stay ahead in the $2.5 billion tokenized gold market.

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 relevant details soon. Meanwhile, please feel free to choose another question or cryptocurrency for analysis.