Lido Secures a Dominant Position with 9 Million Ethereum Deposits
Recent data has revealed that Lido, the leading liquid staking protocol (LSP), has achieved a significant milestone by holding over 9 million ethereum within its system. This impressive figure represents a staggering 77.81% of the total ethereum value locked in current LSPs, solidifying Lido's dominant position in the market.
The Rise of Liquid Staking and Lido's Leadership
The liquid staking industry, currently valued in the billions, is spearheaded by Lido, the prominent liquid staking protocol in today's decentralized finance (defi) landscape. Liquid staking involves staking tokens while keeping the assets "liquid" or "unlocked," enabling various applications. This innovative approach allows stakers to earn rewards while maintaining access to their funds.
Lido has long been at the forefront of this market, and on November 21, 2023, it achieved a significant milestone by surpassing 9 million ether deposits. As of December 3, 2023, Lido holds an impressive 9.28 million ethereum (ETH) in deposits. Over the past 36 days, starting from October 27, 2023, the platform has witnessed a substantial influx of 490,000 ether.
Lido's Dominance in the Liquid Staking Market
The total value locked (TVL) in the Lido protocol is currently estimated at $20.05 billion, based on prevailing exchange rates. Among the 25 liquid staking protocols (LSPs), Lido commands a remarkable 77.81% of the market share. In comparison, the second-largest player, Rocket Pool, recorded a deposit of 49,214 ether during the same 36-day period.
Furthermore, Rocket Pool recently achieved a significant milestone of its own by surpassing the 1 million ETH mark in TVL. While Lido and Rocket Pool observed deposits of 490,000 and over 49,000 ether, respectively, Binance's LSP experienced a more modest increase of 3,459 ETH since October 27.
Lido's STETH and Rocket Pool's RETH in the Market
In the realm of staking token derivatives, Lido's STETH ranks among the top ten crypto assets on market aggregation platforms like coingecko.com, although it is not currently listed in the top ten on coinmarketcap.com. If STETH were to be recognized among the top ten crypto assets today, its market capitalization would position it as the eighth largest.
Meanwhile, Rocket Pool's RETH token currently holds the 52nd position among more than 10,000 listed crypto assets. Moreover, LSPs account for over 52% of the TVL in defi today, as reported by defillama.com. The milestones achieved by Lido and Rocket Pool highlight that these protocols collectively control a staggering 10 million locked ether, worth a total of $22.28 billion.
Share Your Thoughts and Opinions
What are your thoughts on Lido surpassing the 9 million mark and Rocket Pool exceeding 1 million ether in deposits? We invite you to share your insights and opinions on this subject in the comments section below.
Frequently Asked Questions
Can I hold physical gold in my IRA?
Gold is money. Not just paper currency. Gold is an asset people have used for thousands years as a place to store value and protect their wealth from economic uncertainty and inflation. Today, investors invest in gold as part a diversified portfolio. This is because gold tends do better in financial turmoil.
Today, many Americans invest in precious metals such as gold and silver rather than stocks and bonds. It is possible to make money by investing in gold. However, it doesn't guarantee that you'll make a lot of money.
Another reason is the fact that gold historically has performed better than other assets in times of financial panic. Gold prices rose nearly 100 percent between August 2011 and early 2013, while the S&P 500 fell 21 percent over the same period. Gold was one asset that outperformed stocks in turbulent market conditions.
Gold is one of the few assets that has virtually no counterparty risks. Your stock portfolio can fall, but you will still own your shares. If you have gold, it will still be worth your shares even if the company in which you invested defaults on its debt.
Finally, gold provides liquidity. This means you can easily sell your gold any time, unlike other investments. The liquidity of gold makes it a good investment. This allows you take advantage of the short-term fluctuations that occur in the gold markets.
What is the best precious metal to invest in?
This depends on what risk you are willing take and what kind of return you desire. While gold is considered a safe investment option, it can also be a risky choice. Gold may not be right for you if you want quick profits. If you have time and patience, you should consider investing in silver instead.
Gold is the best investment if you aren't looking to get rich quick. If you want to invest in long-term, steady returns, silver is a better choice.
How much do gold IRA fees cost?
$6 per month is the Individual Retirement Account Fee (IRA). This includes account maintenance and any investment costs.
Diversifying your portfolio may require you to pay additional fees. These fees will vary depending upon the type of IRA chosen. Some companies offer free check accounts, but charge monthly fee for IRA accounts.
Many providers also charge annual management fees. These fees vary from 0% to 11%. The average rate for a year is.25%. These rates can be waived if the broker is TD Ameritrade.
Who owns the gold in a Gold IRA?
The IRS considers gold owned by an individual to be “a type of money” and is subject taxation.
You must have at least $10,000 in gold and keep it for at most five years to qualify for this tax-free status.
While gold may be a great investment to help prevent inflation and volatility in the market, it's not wise to keep it if you won't use it.
You will need to declare the value of gold if you intend on selling it one day. This could impact how capital gains taxes you owe for cash investments.
To find out what options you have, consult an accountant or financial planner.
What is the tax on gold in Roth IRAs?
The tax on an investment account is based on its current value, not what you originally paid. So if you invest $1,000 in a mutual fund or stock and then sell it later, any gains are subject to taxes.
However, if the money is deposited into a traditional IRA/401(k), the tax on the withdrawal of the money is not applicable. Capital gains and dividends earn you no tax. This applies only to investments made for longer than one-year.
Each state has its own rules regarding these accounts. For example, in Maryland, you must take withdrawals within 60 days after reaching age 59 1/2 . Massachusetts allows you up to April 1st. New York allows you to wait until age 70 1/2. To avoid penalties, plan ahead so you can take distributions at the right time.
Statistics
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
External Links
finance.yahoo.com
investopedia.com
irs.gov
law.cornell.edu
- 7 U.S. Code SS7 – Designation boards of trade as contract market authorities
- 26 U.S. Code SS 408 – Individual retirement funds
How To
3 Ways to Invest in Gold for Retirement
It is crucial to understand how you can incorporate gold into your retirement plans. If you have a 401(k) account at work, there are several ways you can invest in gold. You may also want to consider investing in gold outside of your workplace. You could, for example, open a custodial bank account at Fidelity Investments if your IRA (Individual Retirement Account) is open. If you don't have any precious metals yet, you might want to buy them from a reputable dealer.
If you do invest in gold, follow these three simple rules:
- Buy Gold With Your Cash – Do not use credit cards to purchase gold. Instead, deposit cash into your accounts. This will protect you from inflation and help keep your purchasing power high.
- Own Physical Gold Coins – You should buy physical gold coins rather than just owning a paper certificate. The reason for this is that physical gold coins are much more easily sold than certificates. You don't have to store physical gold coins.
- Diversify Your Portfolio. Never place all your eggs in the same basket. In other words, spread your wealth around by investing in different assets. This can reduce market volatility and help you be more flexible.
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By: Jamie Redman
Title: Lido and Rocket Pool Dominate the Liquid Staking Market with Millions of Ether Deposits
Sourced From: news.bitcoin.com/lido-achieves-9-million-ethereum-milestone-as-rocket-pool-surpasses-1-million-in-defis-booming-staking-sector/
Published Date: Sun, 03 Dec 2023 20:30:57 +0000
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