PAX Gold sees inflow as new wallet swaps 9,156 ETH in 2 days

Key Takeaways:

• ETH-to-PAXG rotation signals defensive positioning, favoring gold exposure over crypto beta.
• PAXG tracks physical gold via tokenization, ERC-20 issued by Paxos.
• Widespread rotations may tighten PAXG liquidity, widen premiums, slightly dampen ETH demand.

A newly created address rotated from Ethereum into tokenized gold over the past two days, swapping 9,156.45 ETH for 3,734.19 PAXG, according to PANews, citing on-chain monitoring by Onchain Lens.

The move concentrates exposure from a volatile crypto asset into a gold-backed token and may indicate risk management or diversification rather than directional speculation.

Rotating from ETH into PAX Gold (PAXG) is consistent with a defensive tilt. It preserves on-chain settlement while seeking exposure to the price of gold instead of crypto market beta.

Unlike stablecoins that target fiat par values, PAXG is designed to mirror the price of physical gold through tokenization. It is an ERC-20 token on Ethereum and is issued by Paxos Trust Company, aligning the asset’s value with bullion dynamics rather than money market yields.

If replicated by more large holders, such rotations could incrementally tighten PAXG liquidity and widen short-term premiums during execution windows, while modestly dampening ETH spot demand. However, a single transaction of this size does not, by itself, establish a directional signal for either market.

Execution data show the buyer accumulated approximately 3,734.19 PAXG at an average of about US$5,053 per token, for an implied consideration near US$18.87 million, as reported by Youtocoin.com.

The monitoring feed indicates the purchaser used a newly created address and completed the rotation across multiple transactions over two days, a pattern consistent with minimizing price impact during on-chain execution.

“Each token is backed by one fine troy ounce (t oz) of a 400 oz London Good Delivery gold bar, stored in Brink’s vaults,” said Paxos Trust Company.

At the market-structure level, tokenized gold has expanded rapidly, with the sector’s value topping US$6 billion and PAXG alongside XAUT accounting for more than 95% of the category, based on data from Blockchain.news.

At the time of this writing, gold futures recently reclaimed the US$5,000 level, as reported by Bloomberg, providing relevant macro context for on-chain rotations into gold-backed tokens.

Disclaimer: CoinLineup.com provides cryptocurrency and financial market information for educational and informational purposes only. The content on this site does not constitute financial, investment, or trading advice. Cryptocurrency and stock markets involve significant risk, and past performance is not indicative of future results. Always conduct your own research and consult a qualified financial advisor before making any investment decisions.

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