In April 2025, the US dollar index plummeted by 4.5%, raising further doubts about the purchasing power of the dollar. Although stablecoins anchored to the dollar have 'stable prices', they are still vulnerable to inflation erosion. At this time, PAXG, which combines the value of gold with the liquidity of crypto assets, is becoming a new choice for smart money.
What is PAXG?
Issued by Paxos, each token corresponds to 1 ounce of physical gold stored in London, which can be redeemed at any time. PAXG possesses the anti-inflation capability of gold + the flexible usability of cryptocurrency, supporting DeFi collateral, trading, and asset allocation.
Core Advantages:
Hedging against dollar depreciation, following gold price increases
Easier to trade and does not require storage compared to physical gold
Can be used for collateral and yield farming, increasing asset efficiency
Suitable Audience:
Holders of USDT/USDC who want to hedge against stablecoin risks
Risk-averse investors who prefer low-volatility assets
Investors who want to allocate gold but find it inconvenient to hold physical gold
Risk Warning:
Gold prices will still fluctuate, the safety of exchanges/platforms needs attention, and liquidity is slightly inferior to mainstream tokens.
Summary:
In an era where stablecoins are no longer 'stable', PAXG provides an alternative investment tool that combines value retention, liquidity, and inflation resistance. It is suitable for inclusion in a diversified asset portfolio, serving as a hedge and a long-term value storage component.
