The meme coin market, rife with playful cryptocurrencies like Dogecoin and Shiba Inu, has witnessed a significant contraction since 2023. This niche of the crypto market has lost over $3 billion in value, with leading meme coin Dogecoin (DOGE) losing an estimated $2.46 billion since January. Meanwhile, Shiba Inu (SHIB) has seen a drop of approximately $1.22 billion over the past nine months.
A Look at the Meme Coin Market's Rapid Decline
The meme coin market, though initially bolstered by the emergence of Pepe (PEPE) and its $284 million contribution, has suffered a significant dip in value. Just nine months ago, this sector boasted a robust $16.9 billion in value. However, it has since declined by 18.93%, now standing at a total worth of $13.7 billion.
Dogecoin (DOGE): The Reigning Meme Coin
Dogecoin continues to be the dominant meme coin, securing its place as the tenth-largest crypto asset in terms of overall market cap. At the start of 2023, Dogecoin was valued at $10.83 billion. Its current market cap, though significantly lower, stands at $8.37 billion. This represents a $2.46 billion decrease. However, Dogecoin still dominates the meme coin sector, contributing to 61.09% of its total value.
Shiba Inu and Dogecoin: A Month of Losses
In the past week, both Shiba Inu and Dogecoin have experienced losses. Dogecoin recorded a 2.8% decrease, and a month-long overview reveals a 4.4% dip against the U.S. dollar. Similarly, Shiba Inu's value dropped by 2.8% in the past week and 5.4% over the month against the U.S. dollar. Despite these losses, Shiba Inu still maintains a substantial market cap of $4.12 billion, thereby constituting 30% of the $13.7 billion meme coin ecosystem.
The Rise and Fall of Pepe (PEPE) and Dogelon Mars (ELON)
At the onset of 2023, Pepe was not yet a significant player, and Dogelon Mars held the position of the third-largest market cap. However, Dogelon Mars' market cap, which stood at $164 million at the start of the year, has since plummeted to $71 million. After being introduced in April 2023, Pepe quickly gained a valuation of nearly $1.5 billion, only to experience a drastic fall of $1.216 billion from its peak.
The Current State of the Meme Coin Market
As of now, the meme coin market records $370 million in global trade volume out of a total of $20.27 billion in transactions. This means meme coin trades constitute just 1.824% of the total trade volume as of October 15, 2023. Despite the general decline, some meme coins, including Arbdoge AI, Turbo, Kishu Inu, and Jesus Coin, have seen a surge in their values. On the other hand, Meta Doge, Moma V2, Mog Coin, and Chihuahua Chain have emerged as the biggest losers in the meme coin market.
Reflecting on the Meme Coin Market’s Decline
The meme coin economy has undeniably experienced a significant setback since the start of 2023, losing an estimated $3.2 billion in value. This considerable contraction sparks a myriad of questions and reflections about the future of meme coins and the broader cryptocurrency market. We invite you to share your thoughts and insights on this significant trend in the crypto space.
Frequently Asked Questions
Should You Invest Gold in Retirement?
The answer depends on how much money you have saved and whether gold was an investment option available when you started saving. Consider investing in both.
You can earn potential returns on your investment of gold. Retirement investors will find gold a worthy investment.
Although most investments promise a fixed rate of return, gold is more volatile than others. Its value fluctuates over time.
This doesn't mean that you should not invest in gold. It is important to consider the fluctuations when planning your portfolio.
Another benefit to gold is its tangible value. Unlike stocks and bonds, gold is easier to store. It can also be carried.
You can always access your gold if it is stored in a secure place. Additionally, physical gold does not require storage fees.
Investing in gold can help protect against inflation. Because gold prices tend to rise along with other commodities, it's a good way to hedge against rising costs.
Additionally, it will be a benefit to have some of your savings invested into something that won't lose value. Gold rises in the face of a falling stock market.
You can also sell gold anytime you like by investing in it. Like stocks, you can sell your position anytime you need cash. You don't even have to wait until you retire.
If you do decide to invest in gold, make sure to diversify your holdings. Do not put all your eggs in one basket.
Don't purchase too much at once. Start with a few ounces. You can add more as you need.
Remember, the goal here isn't to get rich quickly. Instead, the goal here is to build enough wealth to not need to rely upon Social Security benefits.
While gold may not be the best investment, it can be a great addition to any retirement plan.
Can I buy gold with my self-directed IRA?
While you can purchase gold from your self-directed IRA (or any other brokerage firm), you must first open a brokerage account such as TD Ameritrade. If you already have a retirement account, funds can be transferred to it.
Individuals can contribute as much as $5,500 per year ($6,500 if married filing jointly) to a traditional IRA. Individuals can contribute up to $1,000 annually ($2,000 if married and filing jointly) directly to a Roth IRA.
You might want to purchase physical bullion, rather than futures contracts if you are going to invest in gold. Futures contracts are financial instruments based on the price of gold. These financial instruments allow you to speculate about future prices without actually owning the metal. But, physical bullion is real bars of gold or silver that you can hold in one's hand.
Can I have physical gold in my IRA
Gold is money and not just paper currency. People have used gold as a currency for thousands of centuries to preserve their wealth and keep it safe from inflation. Investors today use gold to diversify their portfolios because gold is more resilient to financial turmoil.
Many Americans today prefer to invest in precious metals, such as silver and gold, over stocks and bonds. While owning gold doesn't guarantee you'll make money investing in gold, there are several reasons why it may make sense to consider adding gold to your retirement portfolio.
One reason is that gold has historically performed better than other assets during periods of financial panic. The S&P 500 declined 21 percent during the same period. Gold prices increased nearly 100 per cent between August 2011 – early 2013. During turbulent market conditions gold was one of few assets that outperformed stock prices.
Another benefit to investing in gold? It has virtually zero counterparty exposure. If your stock portfolio goes down, you still own your shares. However, if you have gold, your value will rise even if the company that you invested in defaults on its loans.
Gold provides liquidity. You can sell your gold at any time without worrying about finding a buyer, which is a major advantage over other investments. Gold is liquid and therefore it makes sense to purchase small amounts. This allows you take advantage of the short-term fluctuations that occur in the gold markets.
Can the government take your gold?
The government cannot take your gold because you own it. You have earned it by working hard for it. It belongs entirely to you. But, this rule is not universal. You can lose your gold if you have been convicted for fraud against the federal governments. Additionally, your precious metals may be forfeited if you owe the IRS taxes. However, even if taxes are not paid, gold is still your property.
How does gold perform as an investment?
The price of gold fluctuates based on supply and demand. Interest rates also have an impact on the price of gold.
Gold prices are volatile due to their limited supply. Additionally, physical gold can be volatile because it must be stored somewhere.
How does a Gold IRA account work?
Individuals who want to invest with precious metals may use the Gold Ira accounts, which are tax-free.
You can purchase gold bullion coins in physical form at any moment. To invest in gold, you don't need to wait for retirement.
An IRA allows you to keep your gold forever. You won't have to pay taxes on your gold investments when you die.
Your heirs inherit your gold without paying capital gains taxes. Because your gold doesn't belong to the estate, it's not necessary to include it on your final estate plan.
You'll first have to set up an individual retirement account (IRA) to open a gold IRA. Once you've completed this step, an IRA administrator will be appointed to your account. This company acts as an intermediary between you and IRS.
Your gold IRA custodian can handle all paperwork and submit necessary forms to IRS. This includes filing annual returns.
After you have created your gold IRA, the only thing you need to do is purchase gold bullion. Minimum deposit required is $1,000 A higher interest rate will be offered if you invest more.
When you withdraw your gold from your IRA, you'll pay taxes on it. You will be liable for income taxes and penalties if you take the entire amount.
Even if your contribution is small, you might not have to pay any taxes. There are exceptions. If you take out 30% of your total IRA assets or more, you will owe federal income taxes and a 20 percent penalty.
It's best not to take out more 50% of your total IRA investments each year. You'll be facing severe financial consequences if you do.
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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- 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)
- 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)
External Links
law.cornell.edu
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement funds
forbes.com
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
finance.yahoo.com
bbb.org
How To
3 Ways To Invest in Gold For Retirement
It's important to understand how gold fits in with your retirement plan. There are many ways to invest in gold if you have a 401k account at work. You might also be interested to invest in gold outside the workplace. For example, if you own an IRA (Individual Retirement Account), you could open a custodial account at a brokerage firm such as Fidelity Investments. If you don't have any precious metals yet, you might want to buy them from a reputable dealer.
These are three easy rules to remember if you invest in gold.
- Buy Gold with Your Cash – Don't use credit cards or borrow money to fund your investments. Instead, cash in your accounts. This will help to keep your purchasing power high and protect you against inflation.
- Physical Gold Coins to Own – Physical gold coin ownership is better than having a paper certificate. The reason for this is that physical gold coins are much more easily sold than certificates. There are no storage fees for 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 will reduce your risk and give you more flexibility in times of market volatility.
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By: Jamie Redman
Title: Understanding the Shrinking Meme Coin Economy: A 2023 Perspective
Sourced From: news.bitcoin.com/meme-coin-market-plummets-3-2-billion-in-2023-dogecoin-and-shiba-inu-lead-declines/
Published Date: Sun, 15 Oct 2023 13:30:18 +0000
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