According to RWA.xyz, the market value of Paxos Gold ($PAXG) has exceeded $500 million. The token was first issued in September 2019 and is a tokenized real-world asset launched by the stablecoin issuer Paxos based on the complete reserve of gold ( Tokenized Real-World Assets (RWA), its value is anchored 1:1 in gold, and the price at the time of writing was US$2,642. Paxos Gold's initial market capitalization was US$3.62 million, and later hit an all-time high of US$632 million on April 19, 2022, growing more than 170 times since it was first listed.
Source: RWA.xyz Total market value of tokenized commodities
What benefits does Paxos Gold offer investors?
During the bear market, the market value of Paxos Gold also continued to shrink. It fell back to the lowest point since ATH of US$387 million on March 1 this year, and has recently risen to US$500 million. This support reflects the unabated market demand for RWA, especially in the context of a poor overall economic environment. Paxos Gold, as a tokenized gold, allows cryptocurrency investors to easily achieve through decentralized ledgers. Self-Custody of precious metals; it also provides a convenient hedging channel for traditional investors, further deepening the seamless connection between DeFi and TradFi.
Paxos Gold’s development in the RWA sector
RWA.xyz classified Paxos Gold as "Tokenized Commodities". Within two years after Paxos Gold was deployed on Ethereum, there was only $PAXG as an asset in this sector; competition for the first place did not appear until November 2021 ─ Tether Gold ($XAUt). Tether Gold is tokenized gold issued by Tether, the number one stablecoin provider. When it first went public, it had a market value of US$155 million, half of the market value of Paxos Gold during the same period.
Today, the total market value of tokenized commodity assets has reached a record high of $1.03 billion; $PAXG and $XAUt account for an overwhelming share of $509 million and $498 million respectively. The rapid growth of Tether Gold not only threatens the market penetration of Paxos Gold, but also reflects the strong market demand for tokenized physical objects. At this stage, the tokenized commodity category counted by RWA.xyz only includes 8 assets, which also means that this sector still has considerable room for growth. As the adoption rate of RWA increases, tokenization technology will continue to inject into the Web3 world. More innovation and choice.
Further reading
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