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As major cryptocurrencies experience a slight downturn, PAX Gold (PAXG) has managed to maintain its value above $2,390. This stability comes as Bitcoin (BTC) and Ethereum (ETH) face declines, reflecting a broader market trend.
On Tuesday, Bitcoin, which had surged to over $68,000 earlier in the week, fell to approximately $66,000 by 2:20 PM ET.
Ethereum, buoyed by the launch of spot Ethereum ETFs on July 23, also faced constraints, with its price hovering around $3,400.
Both leading cryptocurrencies saw declines of 2% and 1.1% respectively at the time of writing. In contrast, PAXG’s decline was minimal, down just 0.13%.
What is PAX Gold?
PAX Gold (PAXG) is a gold-backed cryptocurrency token created by Paxos.
Unlike traditional cryptocurrencies, PAXG is backed by real gold and operates as an ERC-20 token on the Ethereum blockchain.
The primary goal of PAXG is to provide an accessible means of trading gold, overcoming the limitations associated with physical gold, such as its indivisibility and high transaction costs.
With PAXG, traders and investors can buy and sell fractions of gold, thus bypassing the restrictions of minimum buy limits that typically apply to physical gold.
Each PAXG token represents a specific amount of gold stored in secure vaults around the world, with the token’s value directly tied to the price of gold.
PAX Gold price stability amid market movements
PAX Gold reached a peak price of $2,462 on July 17, aligning with a surge in gold prices.
This spike was driven by increased market optimism, partly fueled by speculation that the Federal Reserve might cut interest rates in September and a weakening dollar boosting gold’s appeal.
Despite the recent easing of gold prices, PAXG has managed to hold steady around $2,393. On July 23, as Bitcoin’s value fluctuated amid US political news and Mt. Gox-related sentiment, PAXG maintained its position.
The current price of PAXG represents a slight discount compared to the gold spot price of $2,405.60 per ounce.
Market performance and trading volume
PAXG’s 24-hour trading volume has decreased by 6% to approximately $6.5 million. Its market capitalization stands at over $446 million, trailing behind Tether Gold (XAUT), which leads with a $593 million market cap. XAUT has also seen a significant increase in trading volume, up 53% to over $19 million.
Despite the broader market’s fluctuations, PAX Gold’s ability to hold above $2,390 highlights its resilience and underscores its role as a stable asset amidst the volatility of the cryptocurrency market.
As the market continues to evolve, PAXG remains a key player in the intersection of digital assets and traditional commodities.
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