Introduction
In recent weeks, the market value of leading stablecoins has undergone a significant increase, marking a period of substantial growth for the industry. After experiencing a decline in value over the past year, the stablecoin market has rebounded, expanding from $123.66 billion to a current market capitalization of $129.14 billion. This remarkable growth of nearly $6 billion has caught the attention of investors and analysts alike. Notably, stablecoins such as BUSD, USDP, and USDC have witnessed considerable redemptions over the past 12 months, contributing to the industry's overall transformation.
Stablecoin Market Expansion
According to recent data, spanning from November 2 to November 24, 2023, the stablecoin market has expanded by $5.48 billion. This growth has occurred over a span of 22 days, with stablecoins achieving a trading volume of $50.74 billion in the last 24 hours. This trading volume is particularly significant when compared to the global total trading volume of $88.65 billion, highlighting the dominance of stablecoin swaps in the cryptocurrency market.
Leading Stablecoin Market Values
Tether (USDT) currently leads the stablecoin market with a market value of $88.59 billion, accounting for 68.59% of the total market capitalization of $129.14 billion. Additionally, USDT represents 5.93% of the entire $1.4 trillion crypto economy. Over the past 22 days, USDT's market cap has increased by 4.24%, showcasing its strong performance in the market.
Usd coin (USDC) has also experienced modest growth since November 2, with its market cap rising by 0.81% from $24.5 billion to the present $24.7 billion. This steady increase reflects the stability and demand for USDC in the crypto market.
Other Stablecoin Market Trends
While USDT and USDC have witnessed growth, other stablecoins have experienced varying market trends. DAI's market value has risen by an impressive 43.2%, indicating its increasing popularity among investors. On the other hand, trueusd (TUSD) has seen a decrease in supply by 5.38% since November 2.
BUSD, which has been declining throughout the year, faced a 10.76% drop in market cap, falling from $1.95 billion to $1.74 billion. In contrast, the newcomer first digital usd (FDUSD) has seen a significant rise in market value, increasing from $590 million to $733 million, marking a 24.23% growth.
Tron's USDD experienced a slight decrease from $725 million to the current $719 million, indicating a minor fluctuation in market value. Similarly, Frax Dollar (FRAX) witnessed a slight decrease of 0.44%, going from $671 million to $668 million in the same period.
Paxos, known for supporting the issuance of Paypal's PYUSD, observed a 1.10% reduction in the supply of pax dollar (USDP) from $453 million to $448 million. Additionally, liquity usd (LUSD), the tenth-largest stablecoin by market value, experienced a drop in supply from $220 million to $205 million. Meanwhile, the market capitalizations of alchemix usd (ALUSD) and paypal usd (PYUSD) remained relatively unchanged.
Conclusion
The rapid growth of the stablecoin market over the past three weeks has presented significant opportunities and challenges for investors and industry participants. The expansion of the market by nearly $6 billion demonstrates the resilience and potential of stablecoins in the ever-evolving cryptocurrency landscape. As stablecoins continue to gain traction, it is crucial for investors to stay informed and adapt to the changing dynamics of this dynamic market.
Frequently Asked Questions
Are You Ready to Invest in Gold?
This will depend on how much money and whether you were able to invest in gold at the time that you started saving. If you're unsure about which option to choose then consider investing in both.
Gold is a safe investment and can also offer potential returns. Retirees will find it an attractive investment.
Gold is more volatile than most other investments. This causes its value to fluctuate over time.
This does not mean you shouldn’t invest in gold. Instead, it just means you should factor the fluctuations into your overall portfolio.
Another benefit of gold is that it's a tangible asset. Unlike stocks and bonds, gold is easier to store. It can also be transported.
You can always access gold as long your place it safe. Plus, there are no storage fees associated with holding physical gold.
Investing in gold can help protect against inflation. As gold prices rise in tandem with other commodities it can be a good hedge against rising cost.
You'll also benefit from having a portion of your savings invested in something that isn't going down in value. When the stock market drops, gold usually rises instead.
Gold investment has another advantage: You can sell it anytime. Like stocks, you can sell your position anytime you need cash. You don't even need to wait for your retirement.
If you do decide to invest in gold, make sure to diversify your holdings. You shouldn't try to put all of your eggs into one basket.
You shouldn't buy too little at once. Start by purchasing a few ounces. Then add more as needed.
Don't expect to be rich overnight. It's not to get rich quickly, but to accumulate enough wealth to no longer need Social Security benefits.
And while gold might not be the best investment for everyone, it could be a great supplement to any retirement plan.
Who is entitled to the gold in a IRA that holds gold?
An individual who has gold is considered to be a “form of money” by the IRS and subject to taxation.
This tax-free status is only available to those who have owned at least $10,000 of gold and have kept it for at minimum five years.
Although gold can help to prevent inflation and price volatility, it's not sensible to have it if it's not going to be used.
If you plan to sell the gold one day, you will need to report its worth. This will affect how much capital gains tax you owe on cash you have invested.
To find out what options you have, consult an accountant or financial planner.
How to Open a Precious Metal IRA
First, decide if an Individual Retirement Account is right for you. To open the account, complete Form 8606. To determine which type of IRA you qualify for, you will need to fill out Form 5204. This form should be completed within 60 days after opening the account. After this, you are ready to start investing. You can also contribute directly to your paycheck via payroll deduction.
For a Roth IRA you will need to complete Form 8903. Otherwise, it will be the same process as an ordinary IRA.
To be eligible to have a precious metals IRA you must meet certain criteria. The IRS states that you must be at least 18 and have earned income. You cannot earn more than $110,000 annually ($220,000 if married filing jointly) in any one tax year. Contributions must be made regularly. These rules apply whether you're contributing through an employer or directly from your paychecks.
A precious metals IRA can be used to invest in palladium or platinum, gold, silver, palladium or rhodium. But, you'll only be able to purchase physical bullion. This means you won't be allowed to trade shares of stock or bonds.
To invest directly in precious metals companies, you can also use precious metals IRA. This option is available from some IRA providers.
There are two main drawbacks to investing through an IRA in precious metallics. First, they're not as liquid as stocks or bonds. This makes them harder to sell when needed. Second, they don’t produce dividends like stocks or bonds. You'll lose your money over time, rather than making it.
Statistics
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- 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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
External Links
law.cornell.edu
- 7 U.S. Code SS7 – Designation boards of trade as contract market authorities
- 26 U.S. Code SS 408 – Individual retirement accounts
bbb.org
forbes.com
- Gold IRA: Add some sparkle to your retirement nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
finance.yahoo.com
How To
How to hold physical gold in an IRA
The best way of investing in gold is to purchase shares from companies that produce gold. This method is not without risks. There's no guarantee these companies will survive. Even if they survive, there's always the risk that they will lose money due fluctuations in gold prices.
You can also buy gold directly. This requires you to either open up your account at a bank or an online bullion dealer or simply purchase gold from a reputable seller. This option offers the advantages of being able to purchase gold at low prices and easy access (you don’t need to deal directly with stock exchanges). It is also easier to check how much gold you have stored. The receipt will show exactly what you paid. You'll also know if taxes were not paid. You're also less susceptible to theft than investing with stocks.
There are also some drawbacks. For example, you won't benefit from banks' interest rates or investment funds. You won't have the ability to diversify your holdings; you will be stuck with what you purchased. The taxman might also ask you questions about where your gold is located.
If you'd like to learn more about buying gold in an IRA, visit the website of BullionVault.com today!
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By: Jamie Redman
Title: The Rapid Growth of Stablecoins: A Multi-Billion-Dollar Market Expansion
Sourced From: news.bitcoin.com/stablecoin-market-rebounds-5-48-billion-growth-in-22-days/
Published Date: Sat, 25 Nov 2023 17:30:23 +0000
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