Paxos (PAX) Surpassed $10 billion in Transactions, With $128 Million Market Capitalization

The Paxos (PAX) stablecoin managed to break the $10 billion mark in terms of total transactions in just four months.

Since its launch on September 10th, the fully collateralized with the U.S. dollar digital currency clocked in at $128,8 million in market capitalization. Each week transactions worth nearly $580 million are processed, with weekly redemption rate at around $17 million. According to a corporate tweet, the average time for redemption processing is around 5 hours.

Paxos also made an announcement, stating that transaction volume is much more critical than market capitalization in the stablecoin world because transaction volumes indicate the real usage of a given stablecoin. Since it's launch in September, the stablecoin quickly overtook its rivals like Circle’s USDC and TrueUSD to lead the chart, based on trading volumes.

Paxos’ rapid growth is mostly due to the Binance quick listing. Binance migrated from Tether’s USDT and opened a PAX/BNB trading pair on September 29th, 2018.

Other aspects of PAX’s rapid growth include the stablecoin being fully-regulated under the NYC authority standard and the fact that it is licensed by the SEC.

Some financial analysts have raised a flag of concern about Paxos’ control over the stablecoin, and the regulatory framework of the coin. In PAX’s whitepaper, the organization is reserving its right to temporarily or permanently block access to PAX tokens, in case of court orders and legal processes.

Despite the speculation, the 4-month rapid growth has led to a $128,8 million market capitalization. The result ranked PAX in the top forty biggest cryptocurrencies based on market capitalization.