The year 2023 witnessed a significant downturn in the meme coin market, with a staggering loss of over $3 billion in value. The most prominent players in the meme coin sector, dogecoin (DOGE) and shiba inu (SHIB), have seen substantial drops in their market capitalization since the year's onset. DOGE lost $2.46 billion, while SHIB experienced a $1.22 billion decrease over the last nine months.
Pepe's Attempt to Bolster the Meme Coin Market
Despite the overall market slump, pepe (PEPE) added a value of $284 million to the meme coin market, making it the third most valuable meme coin by market capitalization. However, the overall meme coin market has seen a $3.2 billion decline in its worth. Just nine months ago, this market was valued at $16.9 billion, but it has now receded by 18.93% to a current valuation of $13.7 billion.
Dogecoin: The Reigning Meme Coin
Despite the downturn, dogecoin (DOGE) maintains its position as the leading meme coin and ranks as the tenth-largest crypto asset by overall market capitalization. Starting 2023 with a valuation of $10.83 billion, DOGE's current market capitalization stands at $8.37 billion, marking a $2.46 billion decrease. DOGE continues to dominate the $13.7 billion meme coin market, contributing 61.09% to its total value.
The Downward Trend of DOGE and SHIB
However, analysis from the previous week reveals a 2.8% decline in DOGE value, and a month-long overview indicates a 4.4% dip against the U.S. dollar. The value of SHIB also saw a 2.8% decline over the week and a 5.4% decrease over the month against the U.S. dollar. By October 15, 2023, shiba inu's market cap had fallen to $4.12 billion, down from $5.34 billion at the beginning of the year. However, SHIB still constitutes 30% of the $13.7 billion meme coin market.
The Entry of PEPE and the Fall of Dogelon Mars
At the start of 2023, PEPE was not yet a part of the meme coin market, and dogelon mars (ELON) held the third-largest market cap. Back then, ELON's market cap was around $164 million, but it has since fallen to $71 million. PEPE, which was introduced in April 2023, once boasted a near $1.5 billion valuation but has since seen a $1.216 billion decrease from its peak market cap.
Current Position of the Meme Coin Market
As of now, the meme coin market registers a worldwide trade volume of $370 million, with a total of $20.27 billion in transactions. This means that meme coin trades account for 1.824% of the total trade volume on October 15, 2023. The top performers included arbdoge ai, turbo, kishu inu, and jesus coin, while meta doge, moma v2, mog coin, and chihuahua chain were among the biggest losers.
Final Thoughts on the Meme Coin Market in 2023
The meme coin economy has undoubtedly faced a challenging year in 2023, losing $3.2 billion since the start of the year. It will be interesting to see how the market evolves in response to these changes, and whether new players like PEPE can contribute to a market recovery.
Frequently Asked Questions
What are the advantages of a gold IRA
It is best to put your retirement money in an Individual Retirement Account (IRA). It's not subject to tax until you withdraw it. You can decide how much money you withdraw each year. And there are many different types of IRAs. Some are better suited to college savings. Others are designed for investors looking for higher returns. Roth IRAs, for example, allow people to contribute after they turn 59 1/2. They also pay taxes on any earnings when they retire. These earnings don't get taxed if they withdraw funds. This type account may make sense if it is your intention to retire early.
The gold IRA allows you to invest in different asset classes, which is similar to other IRAs. Unlike a regular IRA, you don't have to worry about paying taxes on your gains while you wait to access them. People who prefer to save their money and invest it instead of spending it are well-suited for gold IRAs.
You can also enjoy automatic withdrawals, which is another benefit of owning your gold through an IRA. This eliminates the need to constantly make deposits. Direct debits could be set up to ensure you don't miss a single payment.
Finally, gold is one the most secure investment options available. Its value is stable because it's not tied with any one country. Even in times of economic turmoil gold prices tend to remain stable. It is therefore a great choice for protecting your savings against inflation.
How much should I contribute to my Roth IRA account?
Roth IRAs allow you to deposit your money tax-free. These accounts are not allowed to be withdrawn before the age of 59 1/2. However, if your goal is to withdraw funds before that time, there are certain rules you must observe. First, your principal (the original deposit amount) cannot be touched. This means that you can't take out more money than you originally contributed. If you are able to take out more that what you have initially contributed, you must pay taxes.
The second rule says that you cannot withdraw your earnings without paying income tax. So, when you withdraw, you'll pay taxes on those earnings. Let's suppose that you contribute $5,000 annually to your Roth IRA. Let's further assume you earn $10,000 annually after contributing. You would owe $3,500 in federal income taxes on the earnings. You would have $6,500 less. The amount you can withdraw is limited to the original contribution.
If you took $4,000 from your earnings, you would still owe taxes for the $1,500 remaining. You'd also lose half the earnings that you took out, as they would be subject to a second 50% tax (half of 40%). You only got back $4,000. Even though you were able to withdraw $7,000 from your Roth IRA,
There are two types of Roth IRAs: Traditional and Roth. Traditional IRAs allow pre-tax contributions to be deducted from your taxable tax income. Your traditional IRA can be used to withdraw your balance and interest when you are retired. There are no restrictions on the amount you can withdraw from a Traditional IRA.
Roth IRAs don't allow you deduct contributions. But once you've retired, you can withdraw the entire contribution amount plus any accrued interest. There is no minimum withdrawal requirement, unlike traditional IRAs. You don't have to wait until you turn 70 1/2 years old before withdrawing your contribution.
How to Open a Precious Metal IRA
First, decide if an Individual Retirement Account is right for you. Open the account by filling out Form 8606. For you to determine the type and eligibility for which IRA, you need Form 5204. This form should not be completed more than 60 days after the account is opened. Once this is done, you can start investing. You may also choose to contribute directly from your paycheck using payroll deduction.
You must complete Form 8903 if you choose a Roth IRA. Otherwise, the process will look identical to an existing IRA.
To qualify for a precious-metals IRA, you'll need to meet some requirements. The IRS says you must be 18 years old and have earned income. You can't earn more than $110,000 per annum ($220,000 in married filing jointly) for any given tax year. And, you have to make contributions regularly. These rules will apply regardless of whether your contributions are made through an employer or directly out of your paychecks.
A precious metals IRA can be used to invest in palladium or platinum, gold, silver, palladium or rhodium. However, you can't purchase physical bullion. You won't have the ability to trade stocks or bonds.
However, there are two significant drawbacks to investing in precious metals via an IRA. They aren't as liquid as bonds or stocks. This makes it harder to sell them when needed. Second, they don’t produce dividends like stocks or bonds. So, you'll lose money over time rather than gain it.
- 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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- (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)
- 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)
- Are You a Good Candidate for a Gold IRA
- What are the Options Types, Spreads and Example. Risk Metrics
- Saddam Hussein's InvasionHelped Uncage a Bear in 1990 – WSJ
- Do you want to keep your IRA gold at home? It's Not Exactly Legal – WSJ
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
Investing in gold or stocks
These days, it might seem quite risky to invest your money in gold. This is because many people believe that gold investment is no longer profitable. This belief arises because most people believe that the global economy is driving down gold prices. They think that they would lose money if they invested in gold. In reality, however, there are still significant benefits that you can get when investing in gold. We'll be looking at some of these benefits below.
One of the oldest forms known of currency is gold. Its use can be traced back to thousands of years ago. It was used all around the world as a reserve of value. It's still used by countries like South Africa as a method of payment.
When deciding whether to invest in gold, the first thing you need to do is to decide what price per gram you are willing to pay. When looking into buying gold bullion, you must decide how much you are willing to spend per gram. You can always ask a local jeweler what the current market rate is if you don't have it.
It's also important to note that, although gold prices are down in recent months, the costs of producing it have risen. So while the price of gold has declined, production costs haven't changed.
You should also consider the amount of your intended purchase when considering whether you should buy or not. If you intend to only purchase enough gold to cover your wedding rings it may be a smart decision to not buy any gold. It is worth considering if you intend to use it for long-term investment. You can profit if you sell your gold at a higher price than you bought it.
We hope our article has given you a better understanding of gold as an investment tool. We strongly recommend that you research all available options before making any decisions. Only after you have done this can you make an informed choice.
By: Jamie Redman
Title: Understanding the Downfall of the Meme Coin Market in 2023
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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