Lido Dominates the Liquid Staking Market
Recent data reveals that Lido, the leading liquid staking protocol (LSP), currently holds over 9 million ethereum within its system. This represents a significant 77.81% of the total ethereum value locked in current LSPs, underscoring Lido's dominant position in the market.
Liquid Staking and Its Benefits
Liquid staking is a booming industry valued in the billions, and Lido is at the forefront of this decentralized finance (defi) landscape. The concept of liquid staking involves staking tokens while keeping them "liquid" or "unlocked," enabling users to leverage their assets for various applications while still earning rewards.
Lido Surpasses 9 Million Ether Deposits
On November 21, 2023, Lido achieved a significant milestone by surpassing 9 million ether deposits. As of December 3, 2023, Lido holds a substantial 9.28 million ethereum (ETH) in deposits. Over the past 36 days, the platform witnessed an influx of 490,000 ether.
Lido's Market Dominance
Lido's total value locked (TVL) in the protocol is estimated at $20.05 billion, making it the leader among the 25 liquid staking protocols (LSPs). Lido commands a significant 77.81% of the market share, dwarfing its closest competitor, Rocket Pool, which recorded a deposit of 49,214 ether during the same 36-day period.
Rocket Pool's Milestone
Rocket Pool, another prominent player in the liquid staking space, recently celebrated a significant achievement by surpassing 1 million ETH in TVL. While Lido and Rocket Pool observed deposits of 490,000 and over 49,000 ether respectively, Binance's LSP experienced a more modest increase of 3,459 ETH since October 27.
STETH and RETH Tokens
Lido's STETH, a staking token derivative, ranks among the top ten crypto assets on market aggregation platforms like coingecko.com. Although not listed in the top ten on coinmarketcap.com, STETH's market capitalization would position it as the eighth largest if recognized among the top ten today.
Rocket Pool's RETH token, on the other hand, currently holds the 52nd position among more than 10,000 listed crypto assets.
LSPs Dominate the Defi Landscape
Liquid staking protocols (LSPs) collectively account for more than 52% of the TVL in defi today, according to defillama.com. Lido and Rocket Pool's milestones highlight their combined control over 10 million locked ether, worth an impressive $22.28 billion.
In conclusion, Lido and Rocket Pool's recent milestones demonstrate their dominance in the liquid staking market. As these protocols continue to grow, they offer users the opportunity to earn rewards while maintaining access to their funds. Share your thoughts and opinions about Lido and Rocket Pool's achievements in the comments section below.
Frequently Asked Questions
How does a gold IRA account work?
Gold Ira accounts are tax-free investment vehicles for people who want to invest in precious metals.
You can purchase physical gold bullion coins anytime. You don't have to wait until retirement to start investing in gold.
The beauty of owning gold as an IRA is you can hold on to it forever. Your gold assets will not be subjected tax upon your death.
Your heirs can inherit your gold and avoid capital gains taxes. It is not required that you include your gold in the final estate report because it remains outside your estate.
You'll first have to set up an individual retirement account (IRA) to open a gold IRA. Once you've done so, you'll be given an IRA custodian. This company acts like a middleman between the IRS and you.
Your gold IRA Custodian will manage the paperwork and submit all necessary forms to IRS. This includes filing annual reports.
Once your gold IRA is established, you can purchase gold bullion coins. The minimum deposit required to purchase gold bullion coins is $1,000 The minimum deposit is $1,000. However, you will receive a higher percentage of interest if your deposit is greater.
Taxes will apply to gold that you take out of an IRA. If you take out the whole amount, you'll be subject to income taxes as well as a 10 percent penalty.
A small percentage may mean that you don't have to pay taxes. There are exceptions. There are some exceptions. For instance, if you take out 30% or more from your total IRA assets, federal income taxes will apply plus a 20 percent penalty.
It is best to not take out more than 50% annually of your total IRA assets. If you do, you could face severe financial consequences.
What precious metal should I invest in?
The answer to this question depends on how much risk you are willing to take and what type of return you want. Although gold has traditionally been considered a safe investment choice, it may not be the most profitable. You might not want to invest in gold if you're looking for quick returns. Silver is a better investment if you have patience and the time to do it.
If you're not looking to make quick money, gold is probably your best choice. If you are looking for a long-term investment that will provide steady returns, silver may be a better choice.
What are the advantages of a gold IRA
You can save money on retirement by putting your money into an Individual Retirement Account. It's tax-deferred until you withdraw it. You can decide how much money you withdraw each year. There are many types and types of IRAs. Some are better suited for college students. Some are for investors who seek 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. The earnings earned after they withdraw the funds aren't subject to any tax. This type of account might be a good choice if your goal is to retire early.
Because you can invest money in many asset classes, a gold IRA works similarly to other IRAs. Unlike a regular IRA which requires taxes to be paid on gains as you wait to withdraw them, a IRA with gold allows you to invest in multiple asset classes. 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. That means you won't have to think about making deposits every month. 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. Because it's not tied to any particular country, its value tends to remain steady. Even in times of economic turmoil gold prices tend to remain stable. As a result, it's often considered a good choice when protecting your savings from inflation.
How much money should my Roth IRA be funded?
Roth IRAs are retirement accounts where you deposit your own money tax-free. You can't withdraw money from these accounts before you reach the age of 59 1/2. However, if you do decide to take out some of your contributions before then, there are specific rules you must follow. First, you cannot touch your principal (the original amount deposited). This means that you can't take out more money than you originally contributed. If you decide to withdraw more money than what you contributed initially, you will need to pay taxes.
The second rule says that you cannot withdraw your earnings without paying income tax. Also, taxes will be due on any earnings you take. For example, let's say that you contribute $5,000 to your Roth IRA every year. Let's say you earn $10,000 each year after contributing. The federal income tax on your earnings would amount to $3,500. So you would only have $6,500 left. The amount you can withdraw is limited to the original contribution.
The $4,000 you take out of your earnings would be subject to taxes. You'd still owe $1,500 in taxes. Additionally, half of your earnings would be lost because they will be taxed at 50% (half the 40%). Even though you had $7,000 in your Roth IRA account, you only received $4,000.
There are two types if Roth IRAs, Roth and Traditional. Traditional IRAs allow for pre-tax deductions from your taxable earnings. Your traditional IRA can be used to withdraw your balance and interest when you are retired. A traditional IRA can be withdrawn up to the maximum amount allowed.
Roth IRAs won't let you deduct your contributions. After you have retired, the full amount of your contributions and accrued interest can be withdrawn. There is no minimum withdrawal amount, unlike traditional IRAs. You don't need to wait until your 70 1/2 year old age before you can withdraw your contribution.
Can I own a gold ETF inside a Roth IRA
While a 401k may not offer this option for you, it is worth considering other options, such an Individual Retirement Plan (IRA).
A traditional IRA allows for contributions from both employer and employee. Another way to invest in publicly traded companies is through an Employee Stock Ownership Plan.
An ESOP gives employees tax advantages as they share the stock of the company and the profits it makes. The money invested in ESOPs is taxed at a lower rate that if it were owned directly by an employee.
Also available is an Individual Retirement Annuity. An IRA lets you make regular, income-generating payments to yourself over your life. Contributions to IRAs will not be taxed
What Does Gold Do as an Investment Option?
Gold's price fluctuates depending on the supply and demand. Interest rates are also a factor.
Gold prices are volatile due to their limited supply. In addition, there is a risk associated with owning physical gold because you have to store it somewhere.
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)
- 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)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
External Links
finance.yahoo.com
forbes.com
cftc.gov
bbb.org
How To
How to hold physical gold in an IRA
An easy way to invest gold is to buy shares from gold-producing companies. However, this method comes with many risks because there's no guarantee that these companies will continue to survive. If they survive, there's still the risk of losing money due to fluctuations in the price of gold.
Alternative options include buying physical gold. You'll need to open a bank account, buy gold online from a trusted seller, or open an online bullion trading account. These options offer the convenience of easy access, as you don't need stock exchanges to do so. You can also make purchases at lower prices. It's also easy to see how many gold you have. A receipt will be sent to you indicating exactly how much you paid. This will allow you to see if there were any tax omissions. You also have a lower chance of theft than stocks.
There are also some drawbacks. You won't be able to benefit from investment funds or interest rates offered by banks. You can't diversify your holdings, and you are stuck with the items you have bought. Finally, tax man may want to ask where you put your gold.
BullionVault.com has more information about how to buy gold in an IRA.
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By: Jamie Redman
Title: Lido and Rocket Pool Reach New Milestones in Liquid Staking
Sourced From: news.bitcoin.com/lido-achieves-9-million-ethereum-milestone-as-rocket-pool-surpasses-1-million-in-defis-booming-staking-sector/
Published Date: Sun, 03 Dec 2023 20:30:57 +0000
