Gold Token PAXG re-enters the top ten in Hyperliquid trading volume; why do longs hold firm under negative fees

Gold Token PAXG’s contract trading volume on Hyperliquid has once again ranked in the top ten on the platform. According to the latest news, in the past 24 hours, PAXG contract trading volume reached $17.05 million, ranking ninth, surpassing tokens such as FARTCOIN, AAVE, and BNB. This is the second time PAXG has entered the top ten list within just two days, reflecting the ongoing market trend of rising interest in the RWA (Real World Asset) sector and gold-themed assets.

Why Is Trading Volume Remaining High

Driven by the New High in Gold Prices

Spot gold prices recently broke historical highs above $4,900, driving the entire tokenized gold sector upward. According to the latest information, the total market capitalization of the tokenized gold sector has risen to $5.12 billion, with a 24-hour increase of over 4%. As one of the most mainstream on-chain gold tokens, PAXG’s market cap has reached $1.989 billion, ranking 57th in the cryptocurrency market cap list. The strong performance of this underlying asset directly translates into active contract trading.

Support from Exchanges and Leverage Tools

On January 21, Bybit announced the launch of PAXG USDC perpetual contracts with leverage up to 25x. The introduction of such tools significantly lowers the participation threshold, attracting more traders. Meanwhile, multiple trading platforms are launching gold-related trading activities, further stimulating trading enthusiasm.

Reference Value of Whale Behavior

On-chain data shows that the trader known as the “largest on-chain gold long” took partial profits of $330,000 on January 21 by closing some PAXG longs, but currently still holds a 5x leveraged long position in PAXG. The continued participation of these large traders sends a positive signal to the market.

What Does the Negative Funding Rate Indicate

Negative funding rates usually occur during broadly bearish market periods. This means shorts need to pay longs to maintain their positions. Despite this, PAXG’s trading volume and open interest ($71.99 million) remain high, indicating that longs are holding their ground amid market pessimism, reflecting confidence in the long-term value of gold assets.

Comparison with Other Mainstream Coins

PAXG’s ability to surpass mainstream tokens like AAVE and BNB to enter the top ten demonstrates increasing market attention to RWA (Real World Asset) tokenization. In contrast, trading activity in traditional crypto assets has relatively declined, possibly indicating that market investors are seeking new narratives and trading opportunities.

Summary

The sustained high trading volume of PAXG reflects three core phenomena: first, the new high in gold prices provides a solid foundation for tokenized gold; second, exchange tools support lowers the participation barrier; third, even in a bearish market with negative funding rates, longs remain steadfast, indicating relatively stable confidence in gold assets. This performance suggests that the RWA sector is becoming a new focus in the market and warrants ongoing attention.