Tokenized Gold Market Value Surpasses $5 Billion Amid Declining On-Chain Usage

The price of PAXG, a tokenized gold asset, has been influenced by various factors, including its market capitalization and on-chain usage rate. According to data, the supply ratio of PAXG in major lending protocols has decreased from around 1.2% in 2021 to approximately 0.4% now.

This decline in on-chain usage suggests that institutions prefer to hold PAXG as a digital gold reserve rather than deploying it in DeFi for yield. However, this static reserve model has suppressed PAXG's on-chain utilization.