Introduction
In recent times, the smart contract platform tokens Solana (SOL) and Avalanche (AVAX) have been gaining momentum and narrowing the gap with the leading smart contract platform, Ethereum (ETH). This article explores the remarkable comeback of SOL and AVAX in the crypto market.
A Strong Comeback
After experiencing significant declines against the U.S. dollar due to the collapse of the Terra blockchain and the FTX failure, SOL and AVAX temporarily lost their positions among the top ten cryptocurrencies. However, they have since reclaimed their spots in the elite group.
Impressive Growth
Since the beginning of 2023, both SOL and AVAX have witnessed impressive triple-digit growth. SOL has surged by 734% since January 1, 2023, while AVAX has seen a 306% increase year-to-date, with 104% of this growth occurring in the last month alone.
Challenging Ethereum
Solana is currently the closest contender to Ethereum, with just $4.04 billion needed to surpass BNB, the fourth-largest crypto asset. However, SOL still lags behind Ethereum's market capitalization by $227.6 billion. Similarly, AVAX is striving to catch up, trading at 69.6% below its peak price of $144.
Current Market Performance
As of the latest data, SOL is priced at $82.59, reflecting a 13.1% increase in the last 24 hours. AVAX, on the other hand, is trading at $43.96, representing a more than 9% increase in the same period.
Rise in Market Capitalization
Among the leading smart contract platform tokens, SOL and AVAX hold the third and fifth positions, respectively, in terms of market capitalization. In the past week, these two cryptocurrencies have outperformed their competitors within the top ten smart contract platform coins.
Conclusion
The resurgence of Solana and Avalanche in the crypto market highlights the dynamic nature of this industry. Despite facing setbacks, SOL and AVAX have shown significant growth, posing a challenge to established players like BNB, ADA, and XRP.
We would love to hear your thoughts on Solana and Avalanche's market performances. Kindly share your opinions in the comments section below.
Frequently Asked Questions
What is the value of a gold IRA
There are many advantages to a gold IRA. It is an investment vehicle that can diversify your portfolio. You decide how much money is put in each account and when it is withdrawn.
You can also rollover funds from other retirement accounts to a gold IRA. This allows you to easily transition if your retirement is 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.
But there are downsides. Gold is historically volatile. It is important to understand why you are investing in gold. Do you want safety or growth? Are you trying to find safety or growth? Only once you know, that will you be able to make 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. You won't need to buy more than one ounce of gold to cover all your needs. You may need several ounces, depending on what you intend to do with your precious gold.
A small amount is sufficient if you plan to sell your gold. Even one ounce is enough. You won't be capable of buying anything else with these funds.
How much should precious metals make up your portfolio?
Before we can answer this question, it is important to understand what precious metals actually are. Precious metals refer to elements with a very high value relative other commodities. They are therefore very attractive for investment and trading. Gold is by far the most common precious metal traded today.
But, there are other types of precious metals available, including platinum and silver. The price for gold is subject to fluctuations, but stays relatively stable in times of economic turmoil. It is also relatively unaffected both by inflation and deflation.
The general trend is for precious metals to increase in price with the overall market. However, they may not always move in synchrony with each other. For instance, gold's price will rise when the economy is weak, while precious metals prices will fall. This is because investors expect lower interest rates, making bonds less attractive investments.
In contrast, when the economy is strong, the opposite effect occurs. Investors prefer safe assets such as Treasury Bonds and demand fewer precious metals. They are more rare, so they become more expensive and less valuable.
To maximize your profits when investing in precious metals, diversify across different precious metals. Because precious metals prices are subject to fluctuations, it is best to invest across multiple precious metal types, rather than focusing on one.
What Precious Metals Can You Invest in for Retirement?
The best precious metal investments are gold and silver. 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: The oldest form of currency known to man is gold. It's stable and safe. Because of this, it's considered a good way to preserve wealth during times of uncertainty.
Silver: Silver has always been popular among investors. This is a great choice for people who want to avoid volatility. Unlike gold, silver tends to go up instead of down.
Platinum: This precious metal is also becoming more popular. It's resistant to corrosion and durable, similar to gold and silver. It's also more expensive than the other two.
Rhodium. Rhodium is used as a catalyst. It is also used as a jewelry material. It is also quite affordable compared with other types of precious metals.
Palladium: Palladium is similar to platinum, but it's less rare. It's also more affordable. For these reasons, it's become a favorite among investors looking to add precious metals to their portfolios.
Is buying gold a good retirement plan?
Although it may not look appealing at first, buying gold for investment is worth considering when you consider the global average gold consumption per year.
The most popular form of investing in gold is through physical bullion bars. However, there are many other ways to invest in gold. It is best to research all options and make informed decisions based on your goals.
If you don't want to keep your wealth safe, buying shares in companies that extract gold and mining equipment could be a better choice. If you need cash flow from an investment, purchasing gold stocks is a good choice.
ETFs are an exchange-traded investment that allows you to gain exposure to the market for gold. You hold gold-related securities and not actual gold. These ETFs usually include stocks of precious metals refiners or gold miners.
Can the government take your gold?
Your gold is yours and the government cannot take it. You worked hard to earn it. It belongs entirely to you. But, this rule is not universal. Your gold could be taken away if your crime was fraud against federal government. Your precious metals can also be lost if you owe tax to the IRS. You can keep your gold even if your taxes are not paid.
Should You Invest Gold in Retirement?
The answer depends on how much money you have saved and whether gold was an investment option available when you started saving. You can invest in both options if you aren't sure which option is best for you.
Gold is a safe investment and can also offer potential returns. It is a good choice for retirees.
Although most investments promise a fixed rate of return, gold is more volatile than others. Therefore, its value is subject to change over time.
This doesn't mean that you should not invest in gold. It is important to consider the fluctuations when planning your portfolio.
Another advantage of gold is its tangible nature. Gold is more convenient than bonds or stocks because it can be stored easily. It can also be transported.
You can always access gold as long your place it safe. You don't have to pay storage fees for physical gold.
Investing in gold can help protect against inflation. As gold prices rise in tandem with other commodities it can be a good hedge against rising cost.
Additionally, it will be a benefit to have some of your savings invested into something that won't lose value. Gold usually rises when the stock market falls.
Another advantage to investing in gold is the ability to sell it whenever you wish. Just like stocks, you can liquidate your position whenever you need cash. You don't even need to wait for your retirement.
If you do decide to invest in gold, make sure to diversify your holdings. Don't put all of your eggs in one basket.
Don't purchase too much at once. Start with just a few drops. You can add more as you need.
Keep in mind that the goal is not to quickly become wealthy. Instead, the goal is to accumulate enough wealth that you don't have to rely on Social Security.
Gold may not be the most attractive investment, but it could be a great complement to any retirement strategy.
Statistics
- 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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.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)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
External Links
irs.gov
investopedia.com
- Do You Need a Gold IRA to Get Retirement?
- What are the Options Types, Spreads and Example. Risk Metrics
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear in 1990 – WSJ
- You want to keep gold in your IRA at home? It's Not Exactly Legal – WSJ
forbes.com
- Gold IRA, Add Sparkle to Your Retirement Nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How To
Gold IRAs: A Growing Trend
Investors seek diversification and protection against inflation by using gold IRAs.
The gold IRA allows investors to purchase physical gold bars and bullion. It is tax-free and can be used by investors who aren't concerned about stocks and bond.
An investor can use a gold IRA to manage their assets and not worry about market volatility. Investors can protect themselves from inflation and other possible problems by using the gold IRA.
Investors also benefit from physical gold's unique properties, such as durability and portability.
The gold IRA also offers many other benefits, such as the ability to quickly transfer the ownership of the gold to heirs, and the fact the IRS doesn't consider gold a currency.
This is why the gold IRA has become increasingly popular with investors looking to provide financial security during times of financial uncertainty.
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By: Jamie Redman
Title: Solana and Avalanche: Emerging Competitors to Ethereum in the Crypto Market
Sourced From: news.bitcoin.com/smart-contract-tokens-solana-and-avalanche-surge-closing-in-on-bnb-and-ethereum/
Published Date: Wed, 20 Dec 2023 21:30:19 +0000
