Why did the price of PAXG go up?

PAX Gold (PAXG) increased by 0.6% to $4,112 over the past 24 hours, reflecting gold’s steady price amid mixed feelings in the crypto market. Key factors driving this movement include:

1. Stable gold prices – Spot gold stayed near $4,100 per ounce after some recent ups and downs.
2. High-profile debate – Binance CEO CZ criticized tokenized gold, which indirectly brought more attention to PAXG.
3. Technical bounce – PAXG’s price recovered from a support level at $4,028 and is now testing resistance at $4,178.

Deep Dive

1. Gold’s Overall Stability (Positive for PAXG)

Gold prices remained steady above $4,100 per ounce, even as Bitcoin gained 2%. This stability is due to ongoing concerns about U.S. government finances and global political tensions, which keep demand high for safe investments like gold. PAXG’s price closely follows physical gold, which saw $640 million in tokenized gold trading on October 24 (Cryptonews).

What this means: PAXG benefits because it combines gold’s traditional role as a safety asset with the convenience of blockchain technology. Since the crypto Fear & Greed Index is at 34 (“Fear”), investors might prefer PAXG for its lower price swings.

What to watch: The next key gold price level is $4,200 (a high from 2025), and upcoming U.S. inflation data on October 30 could influence prices.

2. The CZ-Schiff Debate (Mixed Effects)

Binance founder CZ called tokenized gold a “trust-me-bro” asset during a debate with gold supporter Peter Schiff. While this raised concerns about trusting custodians, it also highlighted PAXG’s regulated setup—Paxos, the issuer, has its gold reserves audited monthly by KPMG.

What this means: The debate actually helped confirm PAXG as a leading choice for institutional investors wanting crypto exposure to gold. PAXG’s market value grew 22% over the past 90 days, beating Tether Gold’s 17% growth (CoinMarketCap).

What to watch: Peter Schiff’s upcoming Shift Gold platform could become a competitor, potentially challenging PAXG’s market position.

3. Technical Price Action (Neutral to Slightly Positive)

PAXG’s price bounced back above its 30-day simple moving average (SMA) at $4,028 and is now facing resistance at the 38.2% Fibonacci retracement level of $4,178. The Relative Strength Index (RSI) at 53.62 indicates neutral momentum, but a bullish crossover in the MACD indicator could point to upward movement.

What this means: Traders might aim for the $4,178 resistance level if gold prices stay above $4,100. However, the 7-day SMA at $4,184 could act as a ceiling.

Conclusion

PAXG’s recent price increase reflects ongoing demand for gold as a safe asset, its reputation as a reliable tokenized gold option, and some technical buying interest. However, its 24-hour trading volume dropped 22% to $302 million, suggesting some investors are cautious.

Key point to watch: Will PAXG break through the $4,178 resistance? If not, it may fall back to the $4,028 support level. If it succeeds, the next target could be the 2025 high of $4,456.

What could affect the price of PAXG?

The price of PAX Gold (PAXG) depends largely on how gold prices move and how much trust the crypto community places in tokenized assets.

1. Gold Price Fluctuations – PAXG’s value closely follows gold, which recently hit record highs above $4,200 per ounce amid global uncertainties.
2. Trust in Custodians – Some critics question the reliance on Paxos, the company holding the physical gold backing PAXG.
3. Regulatory Environment – Oversight by New York’s financial regulator supports PAXG, but global rules for tokenized commodities are still evolving.

Deep Dive

1. Gold’s Market Movements (Mixed Effects)

Overview:
PAXG is tied to the price of physical gold, which surged to over $4,200 per ounce in October 2025 due to geopolitical tensions and inflation worries. However, HSBC predicts gold prices may drop to around $3,355 by the end of 2025 (CryptoSlate), and Bitcoin’s price rally to $126,000 could pull investment away from gold.

What this means:
If investors continue to see gold as a safe place to park money, PAXG could benefit. But sudden drops in gold’s price—like a 6% fall in one day on October 21, 2025—might lead to quick sell-offs of PAXG tokens. Keep an eye on Federal Reserve policies and the strength of the U.S. dollar, as these heavily influence gold’s price.

2. Custody and Centralization Concerns (Potential Downsides)

Overview:
Binance CEO Changpeng Zhao (CZ) has criticized tokenized gold products like PAXG for depending on third-party custodians (CoinGape). Since Paxos holds the physical gold and manages storage, PAXG’s value depends on their trustworthiness. Also, redeeming PAXG for physical gold requires identity verification (KYC) and a minimum of 430 ounces, which limits who can access the actual gold.

What this means:
These centralization issues might discourage crypto users who prefer decentralized assets. Competing products, such as Bitcoin ETFs that offer exposure to physical gold, could attract investors looking for easier or more transparent options. With about 331,000 PAXG tokens in circulation (CryptoSlate), a loss of trust could lead to increased selling pressure.

3. Regulatory and Adoption Trends (Positive Outlook)

Overview:
PAXG benefits from regulation by the New York Department of Financial Services (NYDFS) and partnerships with exchanges like Bitso and OKX. Additionally, Texas passed a law in 2025 recognizing gold as legal tender (CryptoNewsLand), which may encourage more institutional interest.

What this means:
Regular audits by firms like KPMG and integration with decentralized finance (DeFi) platforms such as Aave and Curve add credibility to PAXG. However, competition remains strong, with Tether Gold holding a $2.1 billion market cap (Coinspeaker).

Conclusion

PAX Gold’s future depends on balancing gold’s price trends with the crypto community’s concerns about centralized control. While regulatory support and gold’s recent rally offer opportunities, challenges like redemption limits and Bitcoin’s dominance as “digital gold” create risks. Will PAXG’s growing institutional use overcome trust issues? Keep watching gold’s ETF activity and Paxos’ reserve audits for clues.

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What are people saying about PAXG?

PAX Gold (PAXG) is benefiting from gold’s recent strength, but traders are cautious about potential overbought conditions. Here’s what’s happening:

1. Bullish breakout bets aim for $3,900 if gold stays strong
2. Record inflows push the tokenized gold market close to $3 billion
3. Overbought signals appear after a 49% gain over the past year

In-Depth Look

1. Technical Breakout Potential – Bullish

@genius_sirenBSC says:
"$PAXG could reach $3,900 if it holds support at $3,600, thanks to favorable gold prices and economic conditions."
– @genius_sirenBSC (12.3K followers · 58K impressions · Sept 22, 2025)
See original post
What this means: This is positive for PAXG because its price closely follows gold, which recently hit record highs above $3,800 per ounce (Yahoo Finance).

2. Overheated Momentum – Bearish

According to Finbold, PAXG’s 24-hour Relative Strength Index (RSI) hit 87.16 on October 15, indicating it’s extremely overbought.
– Finbold (1.2M monthly readers · Oct 15, 2025)
Read article
What this means: This suggests a short-term pullback might happen. Historically, such high RSI levels often lead to price corrections. For example, PAXG dropped 6% on October 21 when gold prices fell (Crypto.News).

3. Institutional Adoption Surge – Bullish

CoinDesk reports:
"PAXG saw $40 million in net inflows during September, as the tokenized gold market’s value approached $2.88 billion."
– CoinDesk (5.8M monthly readers · Sept 29, 2025)
Read article
What this means: This is a positive sign for the long term. PAXG’s regulated status (approved by the New York Department of Financial Services) and backing by physical gold make it attractive for institutional investors.

Summary

The outlook for PAXG is mixed. On one hand, strong demand driven by gold’s appeal supports its price. On the other, short-term risks from overbought conditions could lead to corrections. Traders should watch the $3,600 support level closely and keep an eye on how closely PAXG tracks gold prices. Also, monitoring the Fear & Greed Index (currently at 34, indicating "Fear") can help gauge overall market sentiment that might affect gold-linked assets.

What is the latest news about PAXG?

PAX Gold (PAXG) is gaining popularity on exchanges but faces questions about how safe and decentralized it really is. Here are the key updates:

1. Trust Concerns Grow (October 24, 2025) – Experts debate whether tokenized gold truly means owning gold on the blockchain.
2. OKX Listing Expands Access (October 14, 2025) – PAXG becomes available for spot trading on OKX, improving liquidity.
3. Market Cap Surpasses $1.3 Billion (October 23, 2025) – PAXG’s value rises alongside gold prices hitting over $4,100 per ounce.

In-Depth Look

1. Trust Concerns Grow (October 24, 2025)

What’s happening:
A Cryptoslate report points out risks with tokenized gold like PAXG. Instead of ownership being recorded directly on the blockchain, it depends on third-party custodians who hold the physical gold. Unlike Bitcoin ETFs that provide daily proof of reserves, PAXG relies on monthly audits by KPMG. To redeem physical gold, users must complete identity checks and meet high minimum amounts (for example, 430 ounces for Paxos). Also, administrators have the power to freeze tokens, as happened during the FTX collapse.

Why it matters:
This raises questions about how decentralized PAXG really is. While it may not fully satisfy crypto purists who want complete on-chain ownership, it still serves as a useful link between traditional gold markets and the crypto world. Institutional investors may find this setup more acceptable than individual crypto users.

2. OKX Listing Expands Access (October 14, 2025)

What’s happening:
OKX added PAXG for spot trading, allowing deposits starting October 14 and full trading by October 15. This follows PAXG’s availability on other major platforms like Bybit and Kraken, increasing its user base to over 150,000 holders.

Why it matters:
More exchange listings mean better liquidity and easier access, especially in Asian markets. However, on-chain liquidity remains low, with about 0.76% price slippage on $1 million trades, which could be a challenge for large investors (CoinMarketCap Community).

3. Market Cap Surpasses $1.3 Billion (October 23, 2025)

What’s happening:
PAXG’s market value reached $1.3 billion as gold prices climbed to record highs above $4,100 per ounce. Daily trading volumes hit $640 million, driven by economic uncertainty and a weakening link between Bitcoin and gold prices.

Why it matters:
PAXG benefits from gold’s reputation as a safe investment during uncertain times but competes with Bitcoin ETFs for investor attention. Experts like Matt Hougan from Bitwise believe that growing interest from institutions could push PAXG’s growth further (Cryptonews).

Conclusion

PAX Gold (PAXG) is carving out a niche as a hybrid asset that combines traditional gold with blockchain technology. Its $1.3 billion market cap shows strong demand fueled by rising gold prices. However, questions about trust and centralization remain, especially since ownership depends on custodians rather than being fully recorded on-chain. The future of tokenized gold like PAXG will likely depend on how well it balances regulatory compliance, ease of use, and the crypto community’s desire for decentralization.

What is expected in the development of PAXG?

I wasn’t able to find useful information to answer this question right now. The CoinMarketCap team is continuously updating my crypto knowledge, so if any important details become available, I should have them soon. Meanwhile, please feel free to choose another question or cryptocurrency for analysis.

What updates are there in the PAXG code base?

Recent updates to PAX Gold’s (PAXG) technology focus on expanding its ecosystem and meeting regulatory standards.

1. More Flexible Futures Contracts (May 2025) – The size of PAXG-PERP futures contracts was reduced to make trading easier for smaller investors.
2. New Exchange Listings (April–October 2025) – PAXG became available on popular platforms like WOO X, OKX, and Bitso, making it easier to buy and sell.
3. DeFi Integration (June–July 2025) – PAXG can now be used as collateral on decentralized finance (DeFi) platforms such as Aave, Curve, and Fluid.

In-Depth Look

1. More Flexible Futures Contracts (May 2025)

What happened: BTSE lowered the minimum size for PAXG-PERP futures contracts from 0.01 to 0.0001. This change briefly paused trading but was designed to help smaller traders participate more easily.
Why it matters: This update doesn’t change how PAXG works but makes it easier for more people to trade futures contracts, which could lead to more active markets and better price stability.
(Source)

2. New Exchange Listings (April–October 2025)

What happened: PAXG was added to WOO X in April, and later to OKX and Bitso in October. These platforms support PAXG’s ERC-20 token standard, so no changes to the token’s code were needed.
Why it matters: Being listed on more exchanges means more people can access PAXG easily, which usually improves liquidity (how easily you can buy or sell) and helps the token grow as a trusted gold-backed asset.
(Source)

3. DeFi Integration (June–July 2025)

What happened: PAXG became usable as collateral on DeFi platforms like Aave, Curve, and Fluid. This means holders can use their PAXG to borrow money or earn interest through yield farming.
Why it matters: This increases PAXG’s usefulness and demand, but since these platforms are independent, it introduces some risks outside of PAXG’s direct control.

Conclusion

PAX Gold’s recent updates focus on making the token easier to trade and more useful within the growing crypto ecosystem, rather than changing its core technology. By expanding where it’s available and integrating with DeFi, PAXG strengthens its role as a bridge between traditional gold and digital assets. Going forward, it will be interesting to see how PAXG balances the trust needed for gold-backed assets with the decentralized nature of blockchain technology.