As the global monetary environment becomes increasingly turbulent, the dollar experienced its largest monthly decline in recent years in April 2025—falling more than 4.5% against major currencies. This has led many investors to reassess the true value of the 'stablecoins' they hold.
After all, stablecoins anchored to the dollar, like USDT and USDC, will also experience erosion of actual purchasing power in the context of dollar depreciation. In other words, money placed in stablecoins is not necessarily 'stable.'
At this time, more and more investors are starting to pay attention to assets that can truly combat inflation and preserve value, and PAXG (Paxos Gold) is a unique presence in the crypto world that combines the value of gold with on-chain liquidity.
What is PAXG?
PAXG is a crypto token issued by the regulated financial technology company Paxos in the United States, each supported by physical gold (1 ounce) and stored in professional vaults in London. This gold-backed crypto asset combines the anti-inflation characteristics of traditional gold with the high liquidity and programmability of blockchain assets.
In other words, PAXG is the representative product of 'gold digitization,' allowing you to buy and sell gold just like trading other cryptocurrencies while enjoying its value-preserving properties.
Why is PAXG a smarter choice when the dollar weakens?
1. Avoid the impact of dollar depreciation on assets
Although stablecoins like USDT are convenient for use in the crypto market, their value is pegged to the US dollar. Once the dollar declines, the stablecoins in your hands will also quietly shrink.
In contrast, PAXG is linked to gold—a historically proven 'anti-inflation' hard asset. As the dollar weakens, gold prices typically rise, and the value of PAXG will also increase, thus achieving asset hedging.
2. Potential gains from a gold bull market
By 2025, gold prices have already surpassed $3,500 per ounce, and multiple analytical institutions expect it to potentially reach $4,500 or even higher in the future.
As a cryptographic version of gold, PAXG naturally benefits from this, providing investors with space for price appreciation.
3. High liquidity and widespread on-chain applications
PAXG can not only be freely traded on centralized exchanges like Binance but can also be used in DeFi protocols for operations like collateral lending and earning profits.
Compared to traditional gold, PAXG has a lower trading threshold and stronger liquidity, making it very suitable for active investors in the crypto market.
Who is suitable to consider allocating PAXG?
Holders of large amounts of USDT who are concerned about the continuous depreciation of the US dollar
If you hold stablecoins and want to hedge against the risks of fiat currency depreciation, PAXG offers a more secure asset anchoring method.
Those who prefer risk aversion but still wish to maintain liquidity
During periods of market turbulence, PAXG is a relatively stable choice, allowing you to avoid severe fluctuations while retaining operational flexibility.Those who are optimistic about gold in the long term but find it inconvenient to hold physical gold
If you recognize the value of gold but do not want to face the troubles of storage and transportation, PAXG is the best alternative in the digital asset era.
Risks should not be ignored
Although PAXG is essentially a digital version of gold, it is still important to note:
1. Gold price volatility risk: Gold prices are also influenced by macroeconomic factors and geopolitical situations, and the value of PAXG will fluctuate accordingly.
2. Platform and regulatory risks: PAXG relies on the security of trading platforms and the changing regulatory policies of countries regarding crypto assets.
3. Liquidity and transaction costs: In some low liquidity markets, trading PAXG may face slippage or high fees, affecting short-term operational efficiency.
Conclusion:
In the current context of global monetary system adjustments and the gradual decline of the dollar's purchasing power, PAXG provides a digital gold solution that combines anti-inflation, value preservation, and liquidity. For investors looking to reduce stablecoin risks and seek stable asset growth, PAXG may be a worthy consideration for their next safe haven.
Of course, any investment needs to be combined with one's own risk tolerance, and PAXG should be part of an asset portfolio rather than a sole option.
