From a $470,000 unrealized profit, the precious metals craze: why are whales heavily betting on tokenized gold?

Tokenized gold sparks a new wave of trading activity in the on-chain derivatives market. According to the latest news, a whale address heavily long on precious metals has an unrealized profit of over $470,000, with its tokenized gold contract position approaching $5 million. Behind this substantial unrealized gain reflects the market’s continued enthusiasm for gold assets and the profound changes in the on-chain derivatives market structure.

Whale’s Heavy Positioning

This whale employs a diversified but high-leverage long strategy:

The total position size has risen to $4.96 million, which is not only a significant unrealized profit but also a reflection of the whale’s firm conviction in the continued rise of precious metals. Choosing high leverage (5-10x) means the trader is taking on greater risk while betting on a clear directional trend.

PAXG’s Strong Performance

The whale’s judgment has been validated by the market. According to data, PAX Gold (PAXG) has recently performed strongly:

• 24-hour increase of 3.21%
• 7-day increase of 7.46%
• 30-day increase of 9.44%
• Current price has risen to $4,958.97

This sustained upward trend is not isolated. According to the latest monitoring, PAXG’s 24-hour contract trading volume on Hyperliquid reached $227.2 million, ranking eighth, with open interest at $86.86 million, and the funding rate at -0.0032% (negative indicates shorts paying longs), reflecting a generally bullish market sentiment.

Contrasting Market Sentiment

Interestingly, there are clear opposing forces in the market. According to previous reports, the “largest on-chain gold short” trader is still short on about $10.65 million worth of PAXG with 5x leverage, but the unrealized loss on the single token has reached $46,000. This stark contrast with the whale’s unrealized gains highlights the market’s bullish and bearish divergence—one side profiting from longs, the other losing from shorts, clearly visible in these figures.

New Hotspot in On-Chain Derivatives Market

Behind the hot performance of PAXG is a new understanding of tokenized assets in the on-chain derivatives market. Tokenized gold not only provides a value anchor similar to traditional gold but also offers traders 24/7 liquidity and high-leverage trading opportunities. This is precisely where the crypto market has an advantage over traditional markets.

Risks to Watch

It is important to note that Paradex previously experienced a network outage, which led to some PAXG-related accounts being incorrectly liquidated. Paradex has refunded $650,000 to 200 accounts. This reminds us that while high leverage can amplify gains, it also amplifies risks, especially when platform stability is challenged.

Summary

The $470,000 unrealized profit of the whale is not just a number but a barometer of market sentiment. PAXG’s recent strong performance, high trading volume on Hyperliquid, and the unrealized losses of opposing shorts all point to the same conclusion: tokenized gold is becoming a new hotspot in the on-chain derivatives market. However, the profits and risks of high-leverage trading often go hand in hand. Whether this unrealized gain can be realized ultimately depends on the future market trajectory.