PAX tokens have become popular in recent months. With support from over 20 exchanges, the toke helps Paxos facilitate efficient operations and can be converted to USD with ease. In other words, PAX is a tokenized representation of the US dollar backed by the Paxos Trust Company which holds reserves that are fully backed by PAX. These reserves are necessary to maintain the one-to-one peg with the dollar.
Although not all digital assets are created equal, there is a reason why some have more utility than others. In the case of PAX, its use lies in its ability to be a stablecoin. For those who are new to the crypto space, stability is something that is often lacking. Currencies can be incredibly volatile, and this makes it difficult to use them for everyday purchases or even investments.
This is where stablecoins come in. They are designed to minimize volatility and offer stability. This makes them perfect for those who want to invest in cryptocurrencies but don’t want to deal with volatility. And this is also why PAX has been gaining traction recently. But what does the future hold for PAX tokens? Keep reading this PAX crypto price prediction to find out!
Technical Analysis of PAX Crypto
From a technical analysis perspective, there isn’t much to say about PAX tokens. Since the price is pegged to the US dollar, it doesn’t really move in price that much. In fact, it has only moved about 2% in either direction over the past year.
This lack of movement can be attributed to the fact that PAX is a stablecoin. And as we mentioned earlier, stability is one of its main selling points. This makes PAX less attractive to traders who are looking for quick and easy profits.
Looking at the chart, you can see that the price has been trading sideways for quite some time now. It has made several attempts to break out of this range but has so far failed.
Fundamental Analysis of PAX Crypto
Investors who are looking for stability in their portfolios may find PAX to be a good option. The token is an ERC-20 token. This means it is based on the Ethereum blockchain. The total supply of PAX is currently capped at 965,397,177. Each token is worth $1 USD. With its low volatility and easy convertibility, the token offers investors exposure to the world of cryptocurrencies with lower risks. PAX had an all-time low of $0.863529 on May 19th, 2021, and an all-time high of $1.13 on October 15th, 2018. The reason the overall price range seems small is that the token is pegged to the US dollar.
The company plans to use the funds raised in its ICO to develop the Paxos Standard protocol, expand its customer base, and build out its team. The project has a strong team of experienced individuals, including co-founder and CEO Charles Cascarilla, who previously co-founded itBit (now Paxos Trust Company). itBit is a regulated Bitcoin exchange based in New York City. There is some stability in the project and it could reach greater heights in the coming months. If this happens, PAX could revisit its all-time high of $1.13.
Our PAX crypto price prediction is that the token could reach $1.13 in the coming months. This would mark a modest return for investors. However, it is important to remember that PAX is a stablecoin. This means that its main purpose is to provide stability and reduce volatility.