PAX Gold (PAXG) has emerged as a standout performer in the tokenized gold segment, with on-chain data revealing significant network activity growth. According to Santiment, daily active addresses rose to 8,830, marking a record high for the tokenized gold asset. Simultaneously, realized profits reached $6.77 million, the highest level in five months, as reported by Santiment. This surge in activity reflects renewed investor interest as gold posted modest gains over the past week, with the metal gaining 2.45% over the past seven days.
The increased network activity stems from gold's recent volatility, which has prompted traders to seek safer, more liquid on-chain alternatives. As reported by Santiment, gold has been moving sharply again, and tokenized gold is getting more attention as investors look for ways to park capital on-chain. Each PAXG token tracks one fine troy ounce of physical gold, providing crypto holders with gold exposure without moving funds off-chain. The metal's recent strength has supported demand for precious metals and even risk assets, though it was down 0.39% on the day at the time of writing.
Despite the surge in realized profits indicating profit-taking among holders, exchange flow data suggests continued accumulation activity. According to Nansen data, PAXG recorded $6.9 million in net exchange outflows over the past 24 hours, around 3.7 times above its average level. Additionally, 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, pointing to continued accumulation rather than broad-based distribution.
The next major catalysts for PAXG and gold markets will 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'. The spike in realized profits indicates many PAXG holders took advantage of recent gold price strength to lock in gains, though the record number of active addresses points to broader engagement with tokenized gold despite the wave of profit-taking.
