The Remarkable Growth of Stablecoins in the Market

Stablecoins Experience Multi-Billion-Dollar Market Expansion in Three Weeks

In recent weeks, the market value of leading stablecoins has surged, signaling a significant growth in the economy of these fiat-pegged tokens. The market has witnessed a remarkable increase from $123.66 billion to the current $129.14 billion, amounting to nearly $6 billion. This growth comes after the stablecoin industry faced substantial redemptions over the past year, particularly with tokens like BUSD, USDP, and USDC.

Impressive Expansion of the Stablecoin Market

According to recent data spanning from November 2 to November 24, 2023, the stablecoin market has expanded by $5.48 billion within a span of 22 days. In the last 24 hours alone, the trading volume of fiat-pegged cryptocurrencies reached $50.74 billion, surpassing the global trading volume of $88.65 billion.

Stablecoin Swaps Dominate Trading Volume

Stablecoin swaps account for a significant portion of the overall trading volume worldwide, constituting 57.23% of the total. Tether (USDT) leads the way with a market value of $88.59 billion, making up 68.59% of the total market capitalization of $129.14 billion. This also represents 5.93% of the entire $1.4 trillion crypto economy.

USDT and USDC Show Growth

USDT has experienced a 4.24% increase in market capitalization over the past 22 days. Similarly, USD Coin (USDC) has also shown modest growth, with its market cap rising by 0.81% from $24.5 billion to the current $24.7 billion.

Market Movements of Other Stablecoins

DAI's market value has seen a substantial rise of 43.2%, while TrueUSD (TUSD) has witnessed a decrease of 5.38% since November 2. BUSD has been on a declining trend throughout the year, following Paxos's decision to halt the minting of BUSD. Its market cap dropped by 10.76% from $1.95 billion to $1.74 billion.

On the other hand, the newcomer First Digital USD (FDUSD) experienced significant growth, with its market value increasing from $590 million to $733 million, marking a 24.23% rise. Tron's USDD fell slightly from $725 million to the current $719 million, a decrease of 0.82%. Frax Dollar (FRAX) also saw a minor decline of 0.44%, going from $671 million to $668 million.

Paxos, which supports the issuance of Paypal's PYUSD, observed a 1.10% reduction in the supply of Pax Dollar (USDP) from $453 million to $448 million. Liquity USD (LUSD), the tenth-largest stablecoin by market value, experienced a drop in supply from $220 million to $205 million. The market capitalizations of Alchemix USD (ALUSD) and Paypal USD (PYUSD) remained relatively stable.

Share Your Thoughts

What are your thoughts on the remarkable growth of the stablecoin market over the past three weeks? Feel free to share your opinions and insights in the comments section below.

Frequently Asked Questions

What is the benefit of a gold IRA?

A gold IRA has many benefits. You can diversify your portfolio with this investment vehicle. You can control how much money is deposited into each account as well as when it's withdrawn.

You can also rollover funds from other retirement accounts to a gold IRA. This makes for an easy transition if you decide to retire early.

The best part about gold IRAs? You don't have to be an expert. They are readily available at most banks and brokerages. Withdrawals can be made instantly without the need to pay fees or penalties.

There are, however, some drawbacks. Gold is historically volatile. Understanding why you want to invest in gold is essential. Is it for growth or safety? Are you looking for growth or insurance? Only when you are clear about the facts will you be able take an informed decision.

If you plan to keep your gold IRA indefinitely, you'll probably want to consider buying more than one ounce of gold. A single ounce will not be sufficient to meet all your requirements. You may need several ounces, depending on what you intend to do with your precious gold.

You don't need to have a lot of gold if you are selling it. Even a single ounce can suffice. These funds won't allow you to purchase anything else.

Can I keep physical gold in an IRA?

Gold is money, not just paper currency or coinage. People have used gold as a currency for thousands of centuries to preserve their wealth and keep it safe from inflation. Today, investors use gold as part of a diversified portfolio because gold tends to do better during financial turmoil.

Today, many Americans invest in precious metals such as gold and silver rather than stocks and bonds. Although owning gold does not guarantee that you will make money investing in it, there are many reasons to consider adding gold into your retirement portfolio.

One reason is that gold historically performs better than other assets during financial panics. The S&P 500 dropped 21 percent in the same time period, while gold prices rose by nearly 100 percent between August 2011-early 2013. During turbulent market conditions gold was one of few assets that outperformed stock prices.

Another advantage of investing in gold is that it's one of the few assets with virtually zero counterparty risk. 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.

Finally, gold provides liquidity. This means you can easily sell your gold any time, unlike other investments. Gold is liquid and therefore it makes sense to purchase small amounts. This allows one to take advantage short-term fluctuations within the gold price.

How does a Gold IRA account work?

People who wish to invest in precious metals can use Gold Ira accounts as a tax-free investment vehicle.

You can purchase physical bullion gold coins at any point in time. You don’t have to wait to begin investing in gold.

Owning gold as an IRA has the advantage of allowing you to keep it forever. Your gold holdings won't be subject to taxes when you pass away.

Your heirs inherit your gold without paying capital gains taxes. You don't need to include your gold in your final estate report, as it isn't part of the estate.

You'll first have to set up an individual retirement account (IRA) to open a gold IRA. Once you've done that, you'll receive an IRA custody. This company acts in the role of a middleman between your IRS agent and you.

Your gold IRA custodian can handle all paperwork and submit necessary forms to IRS. This includes filing annual reports.

After you have established your gold IRA you will be able purchase gold bullion coin. Minimum deposit is $1,000 However, you'll receive a higher interest rate if you put in more.

You will pay taxes when you withdraw your gold from your IRA. You'll have to pay income taxes and a 10% penalty if you withdraw the entire amount.

If you only take out a very small percentage of your income, you may not need to pay tax. There are some exceptions, though. You'll owe federal income tax and a 20% penalty if you take out more than 30% of your total IRA assets.

Avoid taking out more that 50% of your total IRA assets each year. Otherwise, you'll face steep financial consequences.

How do I Withdraw from an IRA with Precious Metals?

First, determine if you would like to withdraw money directly from an IRA. Next, ensure you have enough cash on hand to pay any penalties or fees that could be associated with withdrawing funds.

Consider opening a taxable brokerage instead of an IRA if it is possible to pay a penalty if your withdrawal is made before the deadline. If you decide to go with this option, you will need to take into account the taxes due on the amount you withdraw.

Next, calculate how much money your IRA will allow you to withdraw. This calculation will depend on many factors including your age at the time of withdrawal, how long the account has been in your possession, and whether you plan to continue contributing towards your retirement plan.

Once you have determined the percentage of your total savings that you would like to convert to cash, you can then decide which type of IRA to use. Traditional IRAs allow you to withdraw funds tax-free when you turn 59 1/2 while Roth IRAs charge income taxes upfront but let you access those earnings later without paying additional taxes.

Once the calculations have been completed, it's time to open a brokerage accounts. Many brokers offer signup bonuses or other promotions to encourage people to open accounts. However, a debit card is better than a card. This will save you unnecessary fees.

When it comes time to withdraw your precious metal IRA funds, you will need a safe location where you can keep your coins. While some storage facilities accept bullion bars and others require that you purchase individual coins, others will allow you to store your coins in their own safe. Before you choose one, weigh the pros and cons.

Bullion bars require less space, as they don't contain individual coins. You will need to count each coin individually. On the flip side, storing individual coins allows you to easily track their value.

Some people prefer to keep coins safe in a vault. Others prefer to place them in safe deposit boxes. Whichever method you choose, make sure you store your bullion safely so you can enjoy its benefits for years to come.

Which precious metal is best to invest in?

The answer to this question depends on how much risk you are willing to take and what type of return you want. While gold is considered a safe investment option, it can also be a risky choice. If you are looking for quick profits, gold might not be the right investment. You should invest in silver if you have the patience and time.

If you're not looking to make quick money, gold is probably your best choice. If you want to invest in long-term, steady returns, silver is a better choice.

How much should you have of gold in your portfolio

The amount that you want to invest will dictate how much money it takes. Start small with $5k-10k. You could then rent out desks and office space as your business grows. You don't need to worry about paying rent every month. You just pay per month.

You also need to consider what type of business you will run. In my case, I am running a website creation company, so we charge clients around $1000-2000/month depending on what they order. This is why you should consider what you expect from each client if you're doing this kind of thing.

Freelance work is not likely to pay a monthly salary. The project pays freelancers. You might get paid only once every six months.

So you need to decide what kind of income you want to generate before you know how much gold you will need.

I suggest starting with $1k-2k gold and building from there.

How much is gold taxed under a Roth IRA

An investment account's tax rate is determined based upon its current value, rather than what you originally paid. If you invest $1,000 into a mutual fund, stock, or other investment account, then any gains are subjected tax.

You don't pay tax if you have the money in a traditional IRA/401k. Taxes are only charged on capital gains or dividends earned, which only apply to investments longer than one calendar year.

The rules governing these accounts vary by state. Maryland is an example of this. You must withdraw your funds within 60 calendar days of turning 59 1/2. You can delay until April 1st in Massachusetts. New York allows you to wait until age 70 1/2. You should plan and take distributions early enough to cover all retirement savings expenses to avoid penalties.

Statistics

  • (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)
  • 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)
  • Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
  • Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
  • If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)

External Links

wsj.com

forbes.com

finance.yahoo.com

cftc.gov

How To

Tips to Invest in Gold

Investing in Gold is a popular investment strategy. This is due to the many benefits of investing in gold. There are many options for investing in gold. Some people prefer to buy gold coins in physical form, while others prefer to invest in gold ETFs.

Before buying any type gold, it is important to think about these things.

  • First, make sure you check if your country allows you own gold. If so, then you can proceed. If not, you may want to consider purchasing gold from overseas.
  • The second thing you need to do is decide what type of gold coins you want. You have the option of choosing yellow, white, or rose gold.
  • You should also consider the price of gold. Start small and build up. You should diversify your portfolio when buying gold. Diversifying your portfolio should be a priority, including stocks, bonds and real estate.
  • Lastly, you should never forget that gold prices change frequently. Be aware of the current trends.

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By: Jamie Redman
Title: The Remarkable Growth of Stablecoins in the Market
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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