Recently, the US dollar has shown a clear depreciation trend, dropping more than 4.5% just in April 2025, marking the largest monthly decline in nearly three years. Global investors are reassessing their capital allocation, especially in the crypto market, where many choose to pause their funds in stablecoins (like USDT, USDC), waiting for clearer direction. However, while stablecoins are anchored to the dollar, when the dollar itself depreciates, actual purchasing power is also eroded.
In such an environment, investors need not only 'stability' but also assets that genuinely possess 'anti-inflation and value preservation' capabilities. This is precisely the unique value of Paxos Gold (PAXG) in the crypto space.
What is $PAXG?
PAXG (Paxos Gold) is a crypto asset issued by the regulated Paxos company in the US, with each token backed by 1 ounce of physical gold stored in professional vaults in London. In simple terms, what you hold on-chain is 'digitized physical gold.'
It combines the advantages of two worlds:
Gold's anti-inflation and value stability.
Liquidity, transparency, and decentralized trading convenience of crypto assets.
Why is $PAXG a smarter choice when the US dollar weakens?
Avoid the trap of US dollar depreciation.
Although stablecoins are pegged to the US dollar, when the dollar weakens, what you actually hold is a depreciating asset. PAXG is pegged to gold, and when gold prices rise, it can hedge against the risks of a weak dollar.
Gold prices reach new highs and still have potential.
In 2025, gold prices are expected to break $3,500 per ounce, with some institutions even predicting $4,500. As a representation of gold, PAXG naturally has room for growth.
Wide applications in the crypto scene.
On mainstream exchanges like Binance, PAXG can be traded flexibly and can also be used as collateral or to earn yields in some DeFi protocols, with liquidity comparable to mainstream stablecoins.
Who is suitable to hold PAXG?
1. Those holding a large amount of USDT but are worried about US dollar depreciation.
2. Those looking to temporarily stay in relatively safe assets during market fluctuations.
3. Long-term bullish on gold, but inconvenient to purchase physical gold bars.
*Risk warning: PAXG is not without risks.
Although PAXG is backed by physical gold and issued by a regulated entity, investors should still be aware of the following risks:
Gold price volatility: A decline in gold prices will directly affect the value of PAXG.
Platform and regulatory risks: PAXG trading and storage still rely on exchanges or wallets, and one must pay attention to security and regulatory changes.
Liquidity and fees: In some scenarios, there may be slippage or higher trading fees, affecting short-term trading efficiency.
Therefore, please carefully assess based on your own risk tolerance before investing and diversify your allocation.
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Transitioning from 'stability' to 'value preservation' is the choice of advanced investors.
In an era where even the US dollar is no longer strong, holding a cryptocurrency linked to physical assets may be the key to breaking the illusion of stablecoins and achieving asset risk resistance. PAXG is not just a blockchain representation of gold, but also a new tool for combating currency risks.
Instead of passively waiting for a market turnaround while holding USDT, it is better to actively deploy an asset that has withstood the test of time—gold. And on the Binance exchange, you only need one transaction to complete this cross-border conversion.
