Paxos USD-backed stablecoin and gold-backed tokens seeing big growth

Paxos USD-backed stablecoin and gold-backed tokens seeing big growth

By DefiMoon | DeFiMoon | 22 Apr 2020


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While everyone was busy tracking DAI and USDC, the PAX stablecoin has been steadily increasing its market share in the ethereum's stablecoin economy.

PAX now has the same active daily users as USDC and DAI. Its worth noting that USDC has 3x the market cap of PAX!

The overall value of transfers is still greater on USDC and DAI, but if PAX keeps the current rate of growth.....

269b41b2e3822080f4bc285c4613981611b6c5bddf21afe82900f7af2ef673dd.png

The growth can also be seen on Coin Metric's graphs, which shows daily transaction numbers on PAX are much higher than both USDC and DAI.

PAX: 11.3K
DAI: 6.69K
USDC: 7.49K

1c7d82eaa9b5da4854d8301ab63945175f56c66118b7960130815c5e9c5b6d15.png

https://coinmetrics.io/charts/#assets=dai,usdc,pax_log=false_roll=30_left=TxTfrValUSD_zoom=1575211824000,1590307344000

PAX hasn't really grown its market cap since January 2020, when it hit its all-time high at 266M, but for some reason the amount of users and daily transaction counts is increasing at a very steady rate. I have to do some more research to see where all this growth is really coming from.

Tokenized gold is another big use case for ethereum, and we can see that there is real demand for such a product, especially in light of the gold bull market.

Significant growth in activity can be seen in Paxos' gold-backed token, PAXG, as the price of gold skyrocketed to an 8-year high of $1700 between early March and mid-April. As you can see from the chart bellow, PAXG volumes, transactions counts and unique users have grown significantly over the past 30 days.

6e370c73f8d53fdd087975c7cd7036279ad5045585fbaeaeceff68bc82342d19.png

https://etherscan.io/token/0x45804880De22913dAFE09f4980848ECE6EcbAf78#tokenAnalytics


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The DeFiMoon blog is about news and developments concerning decentralized finance (DeFi) protocols (Compound, Maker, AAVE, DDEX, dYdX) and stablecoins (USDC, DAI, USDT, TUSD, PAX).

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