How Does Crypto Fund Flow Affect Exchange Holdings and On-Chain Metrics?

Net inflows to exchanges reach $500M in past week

Recent data shows significant capital movement into cryptocurrency exchanges, with PAX Gold (PAXG) experiencing substantial inflows totaling $500 million over the past week. This surge in exchange deposits coincides with PAXG's price volatility, where the token reached a yearly high of $4,854.86 on October 16, 2025, before stabilizing around the $4,000 mark.

Market analysts attribute this inflow trend to investors seeking refuge in gold-backed digital assets amid broader market uncertainty. The Chicago Board Options Exchange Volatility Index (VIX) currently sits at 29, indicating a "Fear" sentiment across financial markets. This apprehension has prompted institutional investors to diversify their portfolios with gold-equivalent digital assets like PAXG, which is fully backed by physical gold stored in London Bullion Market Association vaults, making it an attractive hedge during periods of economic instability.

Top 10 addresses now hold 45% of circulating supply

Recent data analysis reveals a significant concentration of PAX Gold (PAXG) tokens among major holders. The top 10 addresses currently control approximately 45% of the total circulating supply, highlighting a substantial wealth concentration in this gold-backed cryptocurrency. With a current circulating supply of 332,951.91 PAXG tokens valued at over $1.34 billion, this means these addresses collectively hold tokens worth approximately $606 million.

This concentration pattern is particularly noteworthy when examining PAXG's holder distribution compared to market capitalization:

The high concentration ratio raises important questions about market liquidity and price stability. When nearly half of a token's supply is controlled by just ten addresses, significant market movements could potentially occur if any of these major holders decide to sell their positions. This concentration pattern is especially relevant for PAXG investors given the token's connection to physical gold stored in London Bullion Market Association vaults. While this backing provides intrinsic value stability, the ownership concentration might introduce volatility risks that traditional gold investors typically aim to avoid.

Institutional holdings increase by 12% since last quarter

Recent data reveals a significant surge in institutional interest for PAX Gold (PAXG), with holdings increasing by 12% compared to the previous quarter. This growth reflects institutional investors' growing recognition of PAXG as a strategic hedge against market volatility and inflation concerns.

The institutional adoption pattern shows notable differences across various financial sectors:

This institutional confidence is particularly noteworthy given PAXG's price performance, which has seen a 51.36% increase over the past year, vastly outperforming traditional gold investment vehicles. The token's current price of $4,041.20 represents a strong recovery from its historical low of $2,986.26 recorded earlier this year.

Financial analysts attribute this heightened institutional interest to PAXG's unique value proposition as a digital asset backed by physical gold stored in London Bullion Market Association vaults, effectively combining the stability of gold with the efficiency and accessibility of blockchain technology.

On-chain locked tokens hit all-time high of 30% of supply

Recent on-chain data reveals that PAXG has reached a significant milestone with 30% of its total supply now locked in various protocols—marking an all-time high. This unprecedented level of token locking demonstrates growing investor confidence in PAX Gold as a digital representation of physical gold.

The locking distribution across different blockchain protocols shows interesting patterns:

This surge in locked tokens correlates directly with PAXG's impressive 51.36% price appreciation over the past year, during which it climbed from approximately $2,670 to its current value of $4,041. Market analysts attribute this growth to investors seeking inflation hedges through tokenized real-world assets.

The token's backing by physical gold stored in LBMA vaults provides a unique stability advantage over purely digital assets. On-chain data further indicates that the average holding period for locked PAXG has increased to 157 days, suggesting users are increasingly viewing the token as a long-term store of value rather than a speculative trading vehicle. gate users have particularly embraced this trend, with platform data showing a 37% increase in PAXG holdings over the past quarter.

FAQ

What is paxg coin?

PAXG is a digital token backed by physical gold, where 1 PAXG equals 1 troy ounce of gold. It combines the stability of gold with the efficiency of blockchain technology.

Is it safe to buy PaXG?

Yes, buying PaXG is generally considered safe. It's backed by physical gold and audited regularly, providing a stable and secure investment option in the crypto market.

Is PaXG backed by real gold?

Yes, PAXG is fully backed by physical gold. Each token represents one fine troy ounce of gold stored in Brink's vaults.

How much is 1 Pax gold worth in dollars?

As of November 2025, 1 PAX Gold (PAXG) is worth approximately $2,150. The price closely tracks the spot price of physical gold.