Whale uses 5x leverage to go long on PAXG, with an unrealized profit of $585,000. Why has the tokenized gold sector suddenly become so popular?

On-chain gold token PAXG is becoming a market focus. According to the latest monitoring, the largest long trader of PAXG is holding a 5x leveraged long position of 727.25 PAXG, with an average entry price of $4,126.20, currently showing an unrealized profit of $585,000. Behind this trade reflects a collective rise in the entire tokenized gold sector and the rapid heating up of the on-chain precious metals trading ecosystem.

Details and Risks of Whale Trades

Trade size and leverage configuration

This trader’s style is quite aggressive. 727.25 PAXG at the current price of $4,931.15 has a target value of about $3.58 million. But with 5x leverage, the actual controlled position size reaches this amount. According to the latest news, this address uses full-margin mode without isolated margin functionality, meaning the entire account is at risk in this trade.

From an average entry price of $4,126.20 to the current price of $4,931.15, the increase is about 19.5%. Under 5x leverage, this gain is amplified to nearly 100% account return, which is why a floating profit of $585,000 is generated.

Insights from the trading style

This address belongs to a typical proprietary trading style, indicating it is operated by an individual or small team rather than an institution. Such traders usually have strong market intuition and quick response capabilities but also limited risk tolerance. If gold prices move in the opposite direction, the full-margin mode could lead to rapid liquidation.

True Reflection of the PAXG Market Heat

Trading volume and open interest hit new highs

According to the latest data, in the past 24 hours, PAXG contracts on Hyperliquid have traded a volume of $17.05 million, ranking ninth on the platform, higher than FARTCOIN, AAVE, and BNB. This trading volume indicates that PAXG has become a mainstream trading instrument in the contract market.

Open interest in contracts reached $71.99 million, with funding rate at -0.0023%. A negative funding rate means shorts pay longs, usually reflecting a bearish market sentiment. But this detail warrants attention because even with bearish traders, overall open interest continues to grow.

Overall performance of the tokenized gold sector

PAXG is just part of the tokenized gold sector. According to the latest news, the total market cap of the entire tokenized gold sector has risen to $5.12 billion, up over 4% in 24 hours. Among them, XAUT’s market cap increased to $2.579 billion (ranked 50th), and PAXG’s market cap rose to $1.989 billion (ranked 57th).

The rapid rise of this sector is driven by the continuous increase in spot gold prices. As a traditional safe-haven asset, its tokenized form is attracting more and more on-chain traders to participate.

Bull vs. Bear: The Other Side of Market Sentiment

Largest Short Dilemma

Interestingly, PAXG not only has the largest long position but also the largest short. According to the latest news, the “On-chain Gold Largest Short” is currently short 2,198.09 PAXG with 5x leverage, with a floating loss of $460,000 per coin. This contrasts sharply with the largest long’s unrealized profit of $585,000.

This indicates that the market has both bullish and bearish participants, but in terms of absolute unrealized gains/losses, longs currently hold the advantage.

Other whale swing trades

Another noteworthy address is the “20 million swing hunter.” In the past 24 hours, this address took profit and closed its PAXG long position (holding for 29 hours with a profit of $13,800), then immediately switched to short with 5x leverage, shorting 25.929 PAXG. This reflects the flexible strategy of professional traders—not sticking rigidly to one direction but quickly adjusting based on market changes.

Deeper Market Significance

Why is PAXG suddenly so hot?

PAXG, issued by Paxos, is a tokenized gold where each token corresponds to one ounce of London spot gold. Its popularity is driven by several factors:

• Gold itself is in an upward cycle, with spot prices hitting new highs
• On-chain trading offers 24/7 liquidity, more convenient than traditional gold markets
• The existence of 5x leverage allows retail traders to participate in large trades
• The ongoing trend of tokenized assets continues to attract new capital

Risk warning

It’s important to note that the $585,000 unrealized profit looks attractive but is built on high leverage. Although gold tends to be less volatile, under 5x leverage, any 20% adverse move can lead to liquidation. This largest long position is essentially a bet that gold will continue to rise.

Summary

The $585,000 unrealized profit of the largest PAXG long reflects not only individual trader success but also the collective rise of the entire tokenized gold sector. Record-high trading volume, expanding open interest, and a market cap surpassing $50 billion all point in the same direction: on-chain precious metals trading is becoming a new market hotspot.

But hotspots often come with risks. Full-margin mode, 5x leverage, negative funding rates—all these details serve as warnings for participants to exercise caution. The coexistence of unrealized profits for longs and unrealized losses for shorts indicates differing market views. For observers, understanding the underlying market logic is key, rather than blindly following high-leverage trades.