PAXG contract 24-hour trading volume surpasses BNB and AAVE, with spot gold reaching new highs and driving on-chain trading activity.

Gold token PAXG has suddenly gained trading popularity on Hyperliquid. According to the latest news, in the past 24 hours, PAXG contract trading volume reached $22.72 million, ranking in the top ten on the platform and taking eighth place, surpassing well-known tokens such as LIT, BNB, and AAVE. This reflects the rapid heating of the on-chain precious metals trading ecosystem following the all-time high in spot gold prices.

Record High Trading Activity

PAXG’s performance data on Hyperliquid is impressive:

Compared to other tokens, PAXG’s trading volume has already surpassed mainstream coins like BNB, AAVE, and LIT, which was uncommon before. The open interest exceeding $86 million also indicates that participants are not just engaging in short-term trading but are holding sizable positions.

The negative funding rate is particularly noteworthy. When the rate is negative, it indicates that shorts need to pay longs, which usually occurs in a bearish market. In other words, although PAXG is experiencing high trading activity, market opinions on its future are divided—some are bullish, others are actively betting against it.

Spot Gold Reaching New Highs as Main Driver

The background for this on-chain trading surge is clear: spot gold prices broke through $4,700 on January 20, setting a new all-time high. As a result, PAXG’s price also rose accordingly, currently quoted at $4,865.81, with a 24-hour increase of 3.88% and a 7-day increase of 5.23%.

There is a strong correlation between on-chain gold and spot gold. PAXG is a gold-backed token built on Ethereum, with each token representing a certain amount of physical gold, so its price directly follows spot gold. The upward trend in spot gold has attracted many traders into the on-chain market, boosting trading volume.

Whales’ Bull and Bear Positions

Interestingly, on-chain participants show a clear divergence in their attitudes toward PAXG. According to monitoring data:

• The largest long position in on-chain gold was opened on January 2 with 5x leverage, with a position size of about $7.12 million, currently with an unrealized profit of $500,000 (about 27%)
• The largest short position in on-chain gold is a short of 2,989.3 PAXG with 5x leverage, with a position size of about $14.02 million, currently with an unrealized loss of $477,000

This situation, where both sides are using high leverage, reflects market disagreement on the future trend of gold. Bulls are optimistic about the continued rise of spot gold, while bears believe the current price may be too high and could see a correction.

Summary

The fact that PAXG’s trading volume has entered the top ten on Hyperliquid essentially mirrors the all-time high in spot gold prices in the on-chain market. This indicates that crypto traders’ interest in precious metals assets is increasing, with many beginning to incorporate gold and other safe-haven assets into their on-chain trading strategies. As the on-chain precious metals trading ecosystem matures, such tokens may continue to attract more participants. However, given the negative funding rate and the whale’s opposing positions, market expectations for the future are not unified, and short-term volatility warrants close attention.