Stablecoin Market Capitalization Surges
In the past month, data reveals a significant increase in the combined market capitalization of leading stablecoins, rising from $131.71 billion to $136.56 billion. The top two stablecoins, tether (USDT) and usd coin (USDC), experienced notable expansions in their supplies, with increases of 4.8% and 7.2% respectively.
Growth of the Stablecoin Market
Over the last 30 days, the stablecoin market experienced a growth of approximately $4.85 billion, based on data spanning from Dec. 30, 2023, to Jan. 30, 2024. Let's take a closer look at the performance of each stablecoin:
Tether (USDT)
Tether (USDT), the top stablecoin by market capitalization, witnessed a 4.8% increase in its supply, reaching $95.91 billion. Tether is now just 4.09 billion short of achieving a milestone of 100 billion tokens in circulation.
USD Coin (USDC)
Circle's USD Coin (USDC) not only experienced a rise in supply, but its growth, at 7.2%, surpassed that of USDT in the past month. As the second-largest stablecoin by market cap, USDC now boasts a net worth of $26.50 billion, a climb from $24.71 billion just 30 days earlier. Following several months of redemptions, USDC has now observed two successive months of growth in token supply.
DAI and FDUSD
Over the last month, Maker's stablecoin DAI experienced a slight decline, falling by 0.8%. Positioned as the third-largest stablecoin in terms of market valuation, the decentralized finance (defi) stablecoin, DAI, holds a market capitalization of $5.19 billion. Occupying the fourth spot among stablecoins, first digital USD (FDUSD) witnessed the most significant surge in supply, escalating by 42.8%. Currently, FDUSD's market capitalization stands at $2.57 billion.
Other Stablecoins
In fifth place is TrueUSD (TUSD), holding a market capitalization of approximately $1.47 billion. This past month, TUSD experienced a sharp decline in supply, diminishing by 30.6% over the course of 30 days. TUSD also had some stability issues with its intended dollar-peg this month, dropping to the $0.97 range on Jan. 17 and Jan. 26, 2024.
Tron's USDD experienced a modest increase of 1.1%, while the frax dollar (FRAX) recorded a slight decrease of 0.1%. In the past month, Paxos' USDP witnessed a decline of 4.3%, whereas Paypal's PYUSD achieved a notable rise of 13.6%. Meanwhile, the tenth-ranked stablecoin, alchemix USD (ALUSD), saw a decrease of 0.9%.
The Changing Landscape of Stablecoins
As we wrap up this month's episode in the stablecoin saga, a vibrant clash of forces akin to those seen in 2023 has influenced most stablecoins beneath the top trio. USDT, USDC, and DAI have held their ground, while emerging players like FDUSD and PYUSD are ascending in the hierarchy. Meanwhile, former frontrunners such as BUSD and GUSD have dropped out of the top ten. This path, characterized by fluctuations and milestones, echoes the wider story of the evolving crypto economy.
What are your thoughts on the stablecoin economy's growth during the first month of 2024? Share your opinions in the comments section below.
Frequently Asked Questions
What is the best precious-metal to invest?
This depends on what risk you are willing take and what kind of return you desire. Gold is a traditional haven investment. However, it is not always the most profitable. For example, if your goal is to make quick money, gold may not suit you. If patience and time are your priorities, silver is the best investment.
If you don’t desire to become rich quickly, gold may be your best option. However, silver might be a better option if you're looking for an investment that provides steady returns over long periods.
How much do gold IRA fees cost?
An Individual Retirement Account (IRA) fee is $6 per month. This includes the account maintenance fees and any investment costs associated with your chosen investments.
Diversifying your portfolio may require you to pay additional fees. These fees vary depending on what type of IRA you choose. Some companies offer free check accounts, but charge monthly fee for IRA accounts.
Most providers also charge an annual management fee. These fees range between 0% and 1 percent. The average rate per year is.25%. These rates are usually waived if you use a broker such as TD Ameritrade.
What are the pros & cons of a Gold IRA?
An Individual Retirement Plan (IRA) has a major advantage over regular savings accounts. It doesn't tax any interest earned. An IRA is a great way to save money and not have to pay taxes on the interest you earn. This type of investment has its downsides.
For example, if you withdraw too much from your IRA once, you could lose all your accumulated funds. The IRS may prevent you from taking out your IRA funds until you reach 59 1/2. If you do withdraw funds from your IRA you will most likely be required to pay a penalty.
You will also need to pay fees for managing your IRA. Many banks charge between 0.5%-2.0% per year. Others charge management fees that range from $10 to $50 per month.
Insurance will be required if you would like to keep your cash out of banks. In order to make a claim, most insurers will require that you have a minimum amount in gold. You may be required by some insurers to purchase insurance that covers losses as high as $500,000.
If you choose to go with a gold IRA, you'll need to determine how much gold you want to use. You may be limited in the amount of gold you can have by some providers. Others allow you the freedom to choose your own weight.
You'll also need to decide whether to buy physical gold or futures contracts. Futures contracts for gold are less expensive than physical gold. Futures contracts allow you to buy gold with more flexibility. They let you set up a contract that has a specific expiration.
It is also important to choose the type of insurance coverage that you need. Standard policies don't cover theft protection, loss due to fire, flood or earthquake. The policy does not cover natural disasters. If you live near a high-risk region, you might want to consider additional coverage.
In addition to insurance, you'll need to consider the cost of storing your gold. Storage costs will not be covered by insurance. Additionally, safekeeping is usually charged by banks at around $25-$40 per monthly.
A qualified custodian is required to help you open a Gold IRA. Custodians keep track of your investments and ensure compliance with federal regulations. Custodians cannot sell your assets. Instead, they must keep your assets for as long you request.
Once you've chosen the best type of IRA for you, you need to fill in paperwork describing your goals. You must include information about what investments you would like to make (e.g. stocks, bonds and mutual funds). The plan should also include information about how much you are willing to invest each month.
After completing the forms, send them along with a check or a small deposit to your chosen provider. After reviewing your application, the company will send you a confirmation mail.
Consider consulting a financial advisor when opening a golden IRA. A financial planner is an expert in investing and can help you choose the right type of IRA for you. You can also reduce your insurance costs by working with them to find lower-cost alternatives.
How much should you have of gold in your portfolio
The amount that you want to invest will dictate how much money it takes. For a small start, $5k to $10k is a good range. As your business grows, you might consider renting out office space or desks. You don't need to worry about paying rent every month. Rent is only paid per month.
Also, you need to think about the type of business that you are going to run. My website design company charges clients $1000-2000 per month depending on the order. Consider how much you expect to make from each client, if you decide to do this kinda thing.
If you are doing freelance work, you probably won't have a monthly salary like I do because the project pays freelancers. This means that you may only be paid once every six months.
Decide what kind of income do you want before you calculate how much gold is needed.
I suggest starting with $1k-2k gold and building from there.
What is the value of a gold IRA
The benefits of a gold IRA are many. You can diversify your portfolio with this investment vehicle. You decide how much money you want to put into each account, and when you want it to be withdrawn.
You have the option of rolling over funds from other retirement account into a gold IRA. This is a great way to make a smooth transition if you want to retire earlier.
The best part is that you don't need special skills to invest in gold IRAs. They're readily available at almost all banks and brokerage firms. You don't have to worry about penalties or fees when withdrawing money.
There are also drawbacks. Gold has historically been volatile. Understanding why you invest in gold is crucial. Are you seeking safety or growth? Do you want to use it as an insurance strategy or for long-term growth? Only when you are clear about the facts will you be able take an informed decision.
You might want to buy more gold if you intend to keep your gold IRA for a long time. A single ounce will not be sufficient to meet all your requirements. Depending on your plans for using your gold, you may need multiple ounces.
If you're planning to sell off your gold, you don't necessarily need a large amount. Even one ounce is enough. These funds won't allow you to purchase anything else.
Are gold investments a good idea for an IRA?
For anyone who wants to save some money, gold can be a good investment. It can be used to diversify your portfolio. But gold is not all that it seems.
It's been used throughout history as a currency, and even today, it remains a popular form of payment. It is often called “the oldest currency in the world.”
But gold is mined from the earth, unlike paper currencies that governments create. That makes it very valuable because it's rare and hard to create.
The supply and demand factors determine how much gold is worth. People tend to spend more when the economy is healthy, which means that fewer people are able to mine gold. Gold's value rises as a result.
On the flipside, people may save cash rather than spend it when the economy slows. This increases the production of gold, which in turn drives down its value.
It is this reason that gold investing makes sense for businesses and individuals. If you have gold to invest, you will reap the rewards when the economy expands.
You'll also earn interest on your investments, which helps you grow your wealth. You won't lose your money if gold prices drop.
How is gold taxed within an IRA?
The fair market value at the time of sale is what determines how much tax you pay on gold sales. When you purchase gold, you don't have to pay any taxes. It's not considered income. If you decide to make a sale of it, you'll be entitled to a taxable loss if the value goes up.
As collateral for loans, gold is possible. Lenders try to maximize the return on loans that you take against your assets. This usually involves selling your gold. The lender might not do this. They may just keep it. Or they might decide to resell it themselves. Either way, you lose potential profit.
To avoid losing money, only lend against gold if you intend to use it for collateral. It is better to leave it alone.
Statistics
- 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)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.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)
External Links
bbb.org
investopedia.com
finance.yahoo.com
law.cornell.edu
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement funds
How To
Guidelines for Gold Roth IRA
Start saving as soon as possible to save for your retirement. As soon as you become eligible, which is usually around age 50, start saving and keep it up throughout your career. To ensure sufficient growth, it is vital that you contribute enough each year.
Additionally, tax-free opportunities like a traditional 401k or SEP IRA are available. These savings vehicles permit you to make contributions, but not pay any tax until your earnings are withdrawn. These savings vehicles are great for those who don't have access or can't get employer matching funds.
Save regularly and continue to save over time. If you aren't contributing the maximum amount permitted, you could miss out on tax benefits.
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By: Jamie Redman
Title: The Rise of the Stablecoin Economy: A Look at the First Month of 2024
Sourced From: news.bitcoin.com/stablecoin-market-cap-climbs-4-85-billion-in-30-days-usdt-usdc-fdusd-spearhead-growth/
Published Date: Wed, 31 Jan 2024 14:30:53 +0000
Did you miss our previous article…
https://altcoinirareview.com/discreet-log-contracts-evolving-to-meet-institutional-needs/
