PAX: Built to Last or Just Built to Linger?
There’s something oddly noble about Paxos Standard, now branded as Pax Dollar (USDP). It’s sitting exactly where it should be—$1.00. It doesn’t flinch, it doesn’t chase headlines, and it certainly doesn’t moon. As of June 5, 2025, its market cap hovers at $73.2 million (CoinMarketCap), and daily volume clocks in around $2.7 million. Compared to USDT’s $120 billion juggernaut, that’s basically a whisper.
But here’s the twist: PAX might be one of the safest assets in crypto. Fully backed. Fully regulated. Fully boring. And in this market? That’s either a strength or a death sentence.
The Most Trusted Stablecoin Nobody Talks About
PAX has one thing others don’t: regulatory clarity.
Launched by Paxos Trust back in 2018, PAX is regulated by the New York State Department of Financial Services. That’s not just marketing fluff—it’s audited monthly by Withum, backed 1:1 by U.S. dollars in insured banks, and redeemable on demand. No questions, no games.
And it works. If you send in your PAX, the token gets burned and you get dollars straight to your bank. Clean, simple, boring. For institutions, that’s gold.
It’s even powering PayPal’s PYUSD. That alone should be enough to make waves. And yet—PAX is barely floating.
Transaction volume hit $10 billion in 2024, per Dune Analytics. That’s respectable. But when you put it next to USDC’s $1 trillion? Suddenly that “regulatory moat” looks more like a backyard fence.
The Market Isn’t Impressed
Let’s call it what it is: PAX is shrinking.
Its supply has dropped from nearly a billion tokens in 2021 to just 73 million today. Burns have outpaced new issuance for years. Most of DeFi left it behind a long time ago.
Why? Simple. USDC owns the ecosystem. DAI offers yields. Even Tether, for all its controversy, dominates liquidity. PAX doesn’t compete there. Ethereum gas fees don’t help either—$10 to move a dollar isn’t viable, no matter how safe the dollar is.
One trader at Consensus 2025 put it bluntly: “PAX is like the Volvo of stablecoins. Safe, regulated… and just sitting in the garage.”
The bulls on X still make a case for it. They say if regulation cracks down, PAX will be one of the last tokens standing. Maybe. But WalletInvestor predicts it could dip to $0.12 by the end of the year. That’s not a fade—that’s a faceplant.
The Data Speaks for Itself
Let’s break it down:
| Stablecoin | Market Cap | 24h Volume | Edge |
| PAX (USDP) | $73.2M | $2.7M | NYDFS-regulated |
| USDC | $30B | $8B | DeFi’s go-to |
| DAI | $5.4B | $300M | Fully decentralized |
You can’t say it’s not reliable. Wallet activity is consistent—around 10,000 unique addresses per month. Audits are spotless. Reserves are clean. There’s no smoke, no mirrors.
But there’s also no energy. Whale wallets are flat. Binance funding rates for PAX futures? Slightly negative in May. Translation: traders just don’t care. They’re not betting against it—they’re just ignoring it.
What Happens If the Rules Change?
There’s one way PAX could flip the script: regulation.
If USDC or USDT gets clipped by the SEC—or if compliance becomes the only way to survive—PAX could suddenly look like a hero. Especially since PayPal already trusts Paxos to run their stablecoin engine.
BitScreener pegs PAX staying right where it is: $1.00 to $1.01 through 2025. Stability without upside. That’s fine for risk-averse institutions—but it’s dead weight in DeFi, where capital chases yield.
Now imagine a black swan. Binance delists PAX like they did BUSD in 2023. Liquidity disappears overnight. Or worse, the regulatory tide shifts again, and Paxos has to retool everything.
Meanwhile, USDC continues to expand its empire. The network effects are real. Even if PAX does everything right, it may never catch up.
So What’s the Play?
PAX is basically crypto’s version of a federally insured credit union. Safe. Boring. Not for degens.
For institutions? It’s a no-brainer. Audited. Regulated. Trusted. But for traders, builders, and DeFi architects—it’s a footnote. Unless we enter an era where every stablecoin must pass a regulatory stress test, PAX isn’t winning mindshare anytime soon.
Some argue that’s the point. PAX isn’t here to be cool. It’s here to be compliant. It’s designed to survive, not thrive.
But in crypto, survival without growth often equals irrelevance.
Final Word: Built Like a Fortress, Floating Like a Buoy
PAX does its job. No drama, no risk, no surprises. It’s not sexy, and it won’t make headlines. But it won’t blow up either. That’s more than we can say for a lot of its peers.
The problem? Trust isn’t the only currency that matters in crypto. Liquidity is. Ecosystem is. Yield is. And on all three counts, PAX comes up short.
Unless regulation forces a reshuffle, it’s hard to see PAX climbing back into relevance. The peg is solid. The vision is safe. The market, though? It’s moved on.
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
