The stablecoin market experienced significant growth in October, with the addition of $608 million to the fiat-pegged token market. This growth comes after several consecutive monthly declines. However, despite the overall increase, six out of the top ten stablecoins saw reductions in their supply during the month.
Fiat-Pegged Token Market Grows Modestly in October, Led by First Digital and Tether
Tether (USDT), the largest stablecoin by market capitalization, saw a 1.9% increase in its supply, bringing its current market valuation to approximately $84.98 billion. At the end of September 30, 2023, Tether's market cap was $83.22 billion. It is worth noting that Tether recorded $19.79 billion in global trade volume over the past 24 hours across 456 crypto exchanges, accounting for more than 27% of the total $71.77 billion in trades conducted during the same period across the entire ecosystem.
During October, the fiat-pegged token market grew from $123.05 billion to $123.66 billion, representing a modest uptick of just 0.495% or $608 million. This growth was driven by various stablecoins in the market.
Circle's USD Coin (USDC) witnessed a 3.4% reduction in its supply over the past 30 days, resulting in a current market valuation of $24.50 billion. MakerDAO's DAI, the third-largest stablecoin in terms of market valuation, lagged significantly behind at $3.72 billion, with a 3% reduction in October.
TrueUSD (TUSD) experienced a 3.1% decrease in its supply, currently resting at $3.34 billion. The most significant reduction in October was observed in BUSD, with a substantial 13.1% of its supply being redeemed. BUSD's market valuation has now fallen below $2 billion, currently at $1.95 billion.
Meanwhile, the Tron-issued USDD token experienced a slight 0.4% reduction, and FRAX's supply drop was even lighter at 0.2%.
The standout in the stablecoin landscape for October was First Digital USD (FDUSD), which saw a remarkable 45.1% increase in its supply. This surge has propelled FDUSD's total supply to 544.26 million FDUSD tokens, making it the eighth-largest contender in the stablecoin arena.
Among the top ten stablecoins, Pax Dollar (USDP) experienced a 6.7% reduction in supply, while Liquity USD (LUSD) faced a 12.6% decrease over the past 30 days. Paypal's recently introduced dollar-pegged token has quickly risen to become the 15th largest stablecoin.
Frequently Asked Questions
What are the pros and disadvantages 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 option for those who want to save money, but don't want tax on any interest earned. However, there are disadvantages to this type investment.
If you withdraw too many funds from your IRA at once, you may lose all your accumulated assets. You may also be prohibited by the IRS from making withdrawals from an IRA after you turn 59 1/2. If you do withdraw funds from your IRA you will most likely be required to pay a penalty.
Another problem is the cost of managing your IRA. Many banks charge between 0.5% and 2.0% per year. Others charge management fees that range from $10 to $50 per month.
You can purchase insurance if you want to keep your money out of a bank. Many insurers require that you own at least one ounce of gold before you can make a claim. It is possible that you will be required to purchase insurance that covers losses of up to $500,000.
If you choose to have a gold IRA you will need to establish how much gold to use. Some providers limit the number of ounces of gold that you can own. Some providers allow you to choose your weight.
Also, you will need to decide if you want to buy physical gold futures contracts or physical gold. The price of physical gold is higher than that of gold futures. However, futures contracts give you flexibility when buying gold. You can set up futures contracts with a fixed expiration date.
Also, you will need to decide on the type of insurance coverage you would like. The standard policy does NOT include theft protection and loss due to fire or flood. It does offer coverage for natural disasters. If you live in a high-risk area, you may want to add additional coverage.
Insurance is not enough. You also need to think about the cost of gold storage. Storage costs are not covered by insurance. Additionally, safekeeping is usually charged by banks at around $25-$40 per monthly.
Before you can open a gold IRA you need to contact a qualified Custodian. A custodian maintains track of all your investments and ensures you are in compliance with federal regulations. Custodians are not allowed to sell your assets. They must instead keep them for as long as you ask.
Once you have chosen the right type of IRA to suit your needs, it is time to fill out paperwork defining your goals. Information about your investments such as stocks and bonds, mutual fund, or real property should be included in your plan. Also, you should specify how much each month you plan to invest.
After completing the forms, send them along with a check or a small deposit to your chosen provider. After receiving your application, the company will review it and mail you a confirmation letter.
When opening a gold IRA, you should consider using a financial planner. Financial planners are experts in investing and will help you decide which type of IRA works best for your situation. You can also reduce your insurance costs by working with them to find lower-cost alternatives.
Can I hold a gold ETF in a Roth IRA?
This option may not be available in a 401(k), but you should look into other options such as an Individual Retirement account (IRA).
Traditional IRAs allow contributions from both the employer and employee. You can also invest in publicly traded businesses by creating an Employee Stock Ownership Plan (ESOP).
An ESOP is a tax-saving tool because employees have a share of company stock as well as the profits that the business generates. The money in the ESOP can then be subject to lower tax rates than if the money were in the individual's hands.
You can also get an Individual Retirement Annuity, or IRA. An IRA allows you to make regular payments throughout your life and earn income in retirement. Contributions to IRAs can be made without tax.
Who owns the gold in a Gold IRA?
The IRS considers an individual who owns gold as holding “a form of money” subject to taxation.
To be eligible for the tax-free status, you must possess at least $10,000 gold and have had it stored for at least five consecutive years.
Gold can be used to protect against inflation and price volatility. However, it is not a good idea to own gold if you don't intend to 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 precious metals do you have that you can invest in for your retirement?
Silver and gold are two of the most valuable precious metals. They're both easy to buy and sell and have been around forever. If you want to diversify your portfolio, you should consider adding them to your list.
Gold: One of the oldest forms of currency, gold, is one of mankind's most valuable. It is stable and very secure. This makes it a good option to preserve wealth in uncertain times.
Silver: Silver has always been popular among investors. It's a good choice for those who want to avoid volatility. Silver, unlike gold, tends not to go down but up.
Platinum: A new form of precious metal, platinum is growing in popularity. It's like silver or gold in that it is durable and resistant to corrosion. However, it's much more expensive than either of its counterparts.
Rhodium. Rhodium is used as a catalyst. It's also used in jewelry making. And, it's relatively cheap compared to other types of precious metals.
Palladium: Palladium, which is a form of platinum, is less common than platinum. It is also cheaper. For these reasons, it's become a favorite among investors looking to add precious metals to their portfolios.
How is gold taxed in an IRA?
The tax on the sale of gold is based on its fair market value when sold. You don't pay taxes when you buy gold. 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.
Gold can be used as collateral for loans. 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. They may decide to resell it. Either way, you lose potential profit.
So to avoid losing money, you should only lend against your gold if you plan to use it as collateral. It's better to keep it alone.
- 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)
- 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)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement accounts
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1989 – WSJ
- How do you keep your IRA Gold at Home? It's not legal – WSJ
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
Tips for Investing Gold
Investing in Gold is one of the most popular investment strategies worldwide. There are many benefits to investing in gold. There are several ways to invest in gold. Some people buy physical gold coins, while others prefer investing in gold ETFs (Exchange Traded Funds).
You should consider some things before you decide to purchase any type of gold.
- First, verify that your country permits gold ownership. If it is, you can move on. You might also consider buying gold in foreign countries.
- Second, it is important to know which type of gold coin you are looking for. You can choose between yellow gold and white gold as well as rose gold.
- You should also consider the price of gold. It is best to start small and work your way up. You should diversify your portfolio when buying gold. Diversifying your portfolio should be a priority, including stocks, bonds and real estate.
- Last but not least, remember that gold prices fluctuate frequently. You need to keep up with current trends.
By: Jamie Redman
Title: Stablecoin Market Rises by Over $600M in October Despite Mixed Supply Dynamics
Sourced From: news.bitcoin.com/stablecoin-market-rises-by-over-600m-in-october-despite-mixed-supply-dynamics/
Published Date: Fri, 03 Nov 2023 18:00:18 +0000
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