Behind the large transfer of 785 PAXG, why has the gold token become a new battleground for whales

According to the latest news, 785 PAXG tokens (worth approximately $3,608,400) were transferred from an anonymous address to another anonymous address at 13:43 Beijing time. Although this transfer size is not particularly large, in the context of the currently highly active gold token market, it reflects ongoing interest from institutions and whales in PAXG. Even more interesting is that this transfer occurred when market opinions on gold tokens were already polarized.

Transfer Size and Market Share

The true significance of a $3.6 million transfer

This transfer of 785 PAXG tokens, calculated at the current price of $4,596.21, is worth about $3,608,400. In the context of PAXG’s market size, this transfer accounts for approximately 0.2% of the circulating supply of 382,834 tokens and about 2% of the market capitalization of $176 million.

In absolute terms, this is not a particularly large transfer. But the key lies in the transfer frequency and the market background — over the past two days, there have been multiple large transfers and position adjustments in the million-dollar range, indicating a shift in market participants’ attitude toward gold tokens.

Latest performance of the PAXG market

According to the latest data, PAXG currently performs as follows:

• Current price: $4,596.21
• 24-hour decline: 0.96%
• 7-day increase: 3.75%
• 30-day increase: 7.01%
• Market cap: $176 million
• 24-hour trading volume: $253.59 million

Although there has been a short-term correction, the medium-term gains remain substantial. This reflects sustained demand for gold-related tokens.

Market Divergence Revealed by Whale Activity

Bulls are increasing their positions

Based on on-chain data, there is a clear bullish force in the market:

• A trader known as “the largest long on-chain gold token” has leveraged 5x to long 1500 PAXG, with an average entry price of $4,415.46, currently showing an unrealized profit of about $271,000
• The same trader also has a 10x leveraged long position in silver-related tokens, with an unrealized profit of approximately $484,000
• These longs seem to be betting on a macro trend of a broad rally in physical assets

Bears are also building positions

But there are also strong bearish forces:

• A whale address recently increased its short position on PAXG with 5x leverage, with a position size reaching $13 million, an average entry price of $4,517, making it the largest PAXG short position
• This address also holds short positions in assets like XRP, HYPE, with a total position size of $53.2 million
• The same short trader has established 18 stock short positions on Hyperliquid

Underlying Market Logic

Rising demand for gold as a safe haven

In the past week, risk aversion sentiment has clearly increased:

• The Federal Reserve’s independence faces political pressure, raising concerns about dollar credibility
• US debt continues to soar, with hedging against money printing and debt repayment becoming a new focus for institutions
• Harvard University has allocated $500 million to Bitcoin and $250 million to gold this year
• Paxos’s total assets have surged from $1.2 billion to $6.8 billion over the past year, with PAXG growing to $1.8 billion

All these point in the same direction — institutional investors are increasing their allocations to physical assets.

Gold tokens becoming a new track

Gold tokens like PAXG and XAUt are emerging as institutional-level safe haven tools:

• PAXG, issued by Paxos, is an on-chain gold token with high institutional recognition
• Compared to traditional gold ETFs, on-chain gold offers higher liquidity and trading convenience
• Recently, exchanges like MEXC launched fee-free trading pairs for PAXG, further boosting market participation

Summary

This transfer of 785 PAXG tokens essentially reflects the activity and divergence in the gold token market. On one hand, institutional and safe-haven funds are pouring into gold tokens, driving PAXG’s market cap to grow rapidly; on the other hand, there are clear bearish forces believing gold prices are overheated.

From a broader perspective, gold tokens are evolving from niche assets into institutional-level safe haven tools. This transformation is ongoing. The future performance of gold tokens will largely depend on the evolution of macro safe-haven sentiment — if policy uncertainties continue to rise, bulls may keep profiting; if safe-haven sentiment eases, opportunities for bears will emerge. In the short term, market bullish and bearish divergence will continue to push up PAXG’s trading volume, which is beneficial for market liquidity.