2025-12-27 13:26:07

Recently, I have been paying attention to the gold tokenization track in the crypto market, which has indeed gained a lot of popularity this year. Currently, a major exchange offers two mainstream gold tokens—PAXG and XAU, with PAXG being the most recognized and actively traded.

The logic behind PAXG is straightforward: each token corresponds to one ounce of physically delivered gold in London Good Delivery standards, issued by Paxos and stored in professional vaults. This 1:1 redemption mechanism makes it a bridge connecting traditional gold and blockchain.

What’s even more interesting is its ranking change. It was outside the top 100 at the beginning of the year, but has now surged to the 40th position in market capitalization. This rapid rise is no coincidence—by 2025, gold prices are expected to be booming, with strong global hedging demand. Gold tokenized assets within the crypto ecosystem are rising along with it, showing more resilience compared to other tokens. It seems that the path of bringing traditional assets onto the chain, gold might really be leading the way.

PAXG0,28%

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MEVHunterX

· 3h ago

PAXG has surged from the 100s at the beginning of the year directly to the 40s, and this increase is indeed quite aggressive. It feels like the entire market is betting on traditional assets going on-chain. Tokenization of gold is indeed more resilient during downturns compared to other cryptocurrencies, but the question is, can this thing truly break out of its niche? Wait, can 1:1 redemption really be guaranteed? Has Paxos's vault been audited? I just want to know whether it's the gold itself that has appreciated or if someone is just hyping PAXG. Being resilient during downturns also means it might be resistant to gains, and the returns seem a bit underwhelming. On-chain traditional assets don't necessarily have to be gold. Why is it this time that it's gold's turn? This is indeed a good hedging tool, much more interesting than just holding USD stablecoins. But will genuine institutions use PAXG or just hold the physical gold directly? That's the key question. From 100 to 40, the fluctuation isn't too outrageous; it's just a normal market rotation. Paxos-backed assets still have some credibility, at least more reliable than some fly-by-night coins.

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NFTragedy

· 13h ago

PAXG jumped from outside the top 100 to the top 40, this speed really can't be sustained anymore. Tokenized gold seems to really not just be hype. On-chain traditional assets, especially gold, are well understood. Its strong anti-dip properties are really attractive. The 1:1 redemption mechanism is honest and much more trustworthy compared to those worthless tokens. With gold on the rise, it feels like there's finally some real gold and silver in crypto. If I want to get into the PAXG track now, is it still early?

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APY追逐者

· 13h ago

Tokenization of gold is indeed interesting. PAXG jumped from outside the top 100 to the top 40, thanks to the crazy rise in gold prices this year. It has good anti-dip properties and is much more reliable than those purely speculative coins. The logic of 1:1 backing with physical gold is understandable to everyone; it's nothing complicated, just a good hedging tool. But why are there still so few people using it? Is the trading depth sufficient? That's also a concern. While the on-chain approach to traditional assets is leading with gold, aren't Bitcoin and Ethereum, as established cryptocurrencies, more stable? Why switch to gold tokens?

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GreenCandleCollector

· 13h ago

PAXG this time really showed off, jumping from outside the top 100 to 40 is a bit outrageous, but upon reflection, it makes sense. Bringing stable assets on-chain is truly the trend, much better than chasing after those shitcoins with no fundamentals. The core of gold tokenization is the 1:1 redemption, which is what Web3 should be doing.

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SchrodingerWallet

· 13h ago

Really, PAXG surged from above 100 to the 40s, and the growth rate is incredible... Gold tokenization is stable, with strong anti-drop properties, unlike those air coins that go up and down all day. The 1:1 redemption mechanism has a high level of trust; finally, there's something tangible. Wait, the question is, is the liquidity sufficient? Could Paxos have issues someday... But on the other hand, the path of bringing traditional assets on-chain is indeed worth paying attention to. Starting with gold feels like a solid move.

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NFTDreamer

· 13h ago

PAXG jumped from outside the top 100 to the top 40, and the growth rate is really impressive. But upon reflection, it's quite reasonable—gold is inherently resistant to declines, and adding a blockchain overlay naturally attracts hedging funds. Physical backing is definitely a game-changer, much more reliable than those air coins.

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