Gold's swings send PAXG wallets to a record as holders cash out

PAX Gold (PAXG) is drawing renewed attention after gold posted modest gains over the past week.

On-chain data from Santiment showed that the tokenized gold asset recorded a surge in network activity, with daily active addresses and realized profits rising.

Why tokenized Gold is back in focus

According to Santiment, daily active addresses rose to 8,830, marking a record high. At the same time, realized profits reached $6.77 million, the highest level in five months.

“The likely driver is simple: gold has been moving sharply again, and tokenized gold is getting more attention as traders look for safer, more liquid ways to park capital on-chain,” Santiment said.

Each PAXG token tracks one fine troy ounce of physical gold. That structure gives crypto holders gold exposure without moving funds off-chain.

Gold has rallied over the past week as investors responded to shifting expectations for US monetary policy. This has supported demand for precious metals and even risk assets. 

The metal has gained 2.45% over the past seven days, although it pared some of those gains and was down 0.39% on the day at the time of writing.

Santiment said the spike in realized profits suggests many PAXG holders took advantage of the recent strength in gold prices to lock in gains. This move could create short-term selling pressure on the token.

However, the analytics firm said the record number of active addresses points to broader engagement with tokenized gold despite the wave of profit-taking.

Flows point to accumulation

Although the surge in realized profits points to increased profit-taking, exchange flow data suggests many investors are still accumulating PAXG.

Nansen data showed that PAXG recorded $6.9 million in net exchange outflows over the past 24 hours, around 3.7 times above its average level. Meanwhile, newly created wallets accumulated another $1.8 million worth of the token.

Over the past seven days, exchanges continued to see net outflows, while profit-taking among the largest holders remained relatively limited at $105,400. This pattern points to continued accumulation rather than broad-based distribution.

The next catalysts for PAXG and gold markets will likely be the release of the Federal Reserve's June meeting minutes on Wednesday, followed by the June US inflation report on July 14. 

Santiment suggested that if gold maintains its recent strength, PAXG could remain “remain one of the more actively watched 'safer' crypto plays.”