Why is gold-backed stablecoin PAX Gold (PAXG) rising?

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Why is gold-backed stablecoin PAX Gold (PAXG) rising?

 Why is gold-backed stablecoin PAX Gold (PAXG) rising?
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Highlights

  • PAX Gold (PAXG) is a gold-backed stablecoin.
  • PAXG is an ERC-20 token launched in September 2019.
  • Its price rose by 6.72% in the last seven days.

Stablecoins are cryptos backed by real-world assets like gold, fiat currencies issued by the government, cryptos, etc. But the value of stablecoins can change with the performance of the underlying assets in the market.

Stablecoins, especially the gold-backed stablecoins, are catching investors’ attention as they look for safe-haven assets amid the Russia-Ukraine tensions.

The geopolitical tensions have adversely impacted the financial and the crypto market.

On Tuesday, the global crypto market was down 0.97% to US$1.72 trillion at 12:22 pm ET, while the 24-hour trading volume was up by 12.71% to US$84.66 billion at the same time.

So, what are PAX Gold (PAXG) stablecoins?

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PAX Gold (PAXG) crypto

Pax Gold (PAXG) is a gold-backed stablecoin launched by Charles Cascarilla in September 2019. Cascarilla is the CEO of Pax Gold.

PAXG, an ERC-20 token, operates on the Ethereum blockchain. It aims to make gold more tradable, arguing that the physical commodity is not easily divisible.

In its whitepaper, the company further claims the platform allows investors to buy an “indefinitely small amount” of gold through cryptos without minimum purchase limits.

Also Read: Why is FTX Token (FTT) rising?

Why Is Gold Backed Stablecoin PAX Gold (PAXG) Rising?

Why is Pax Gold rising?

Pax Gold's (PAXG) surge in recent weeks could be due to the increasing inflationary headwinds triggered by the Ukraine crisis, forcing investors to look for shelter in safe-haven gold assets.

After sanctions on Russia, prices of nearly all commodities, including gold, have soared.

Other gold stablecoins like Tether Gold (XAUT) has also witnessed a price jump.

Also Read: Why is Immutable X (IMX) crypto rising?

 

Source: *Data provided by CoinMarketCap.com

Bottom line:

The PAXG token was priced at US$2,031.74 at 12:55 pm ET on March 8, up 2.20%, while its one-day volume surged 18.04% to US$150.36 million. It has a market cap of US$593.43 million, and its fully-diluted market cap is US$604.83 million.

The token's circulating supply is 292,083.81, and its total supply is 292,084. Its price soared 17.49% over the past 12 months and 6.72% in the last seven days.

Also Read: NEM to FNV: 5 gold stocks to hedge against Russia-Ukraine tensions

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