Over the past month, there has been a significant rise in the combined market capitalization of leading stablecoins, increasing from $131.71 billion to $136.56 billion. Tether (USDT) and USD Coin (USDC), the top two stablecoins, have witnessed notable expansions in their supplies, with increases of 4.8% and 7.2% respectively.
The Growing Stablecoin Economy
During the last 30 days, the stablecoin market has experienced a growth of approximately $4.85 billion, based on data from Dec. 30, 2023, to Jan. 30, 2024. Tether (USDT), the top stablecoin by market capitalization, has witnessed a 4.8% increase in its supply, reaching $95.91 billion. It is now just 4.09 billion tokens away from reaching the milestone of 100 billion tokens in circulation.
USD Coin (USDC) from Circle has not only seen a rise in supply but has also surpassed USDT's growth with a 7.2% increase in the past month. As the second-largest stablecoin by market cap, USDC now has a net worth of $26.50 billion, up from $24.71 billion just 30 days earlier. After several months of redemptions, USDC has observed two consecutive months of growth in token supply.
Over the past month, Maker's stablecoin DAI has experienced a slight decline, falling by 0.8%. Positioned as the third-largest stablecoin in terms of market valuation, the decentralized finance (defi) stablecoin, DAI, has a market capitalization of $5.19 billion. First Digital USD (FDUSD), occupying the fourth spot among stablecoins, has witnessed the most significant surge in supply, escalating by 42.8%. Currently, FDUSD has a market capitalization of $2.57 billion.
In fifth place is TrueUSD (TUSD), with a market capitalization of approximately $1.47 billion. However, TUSD has experienced a sharp decline in supply, diminishing by 30.6% over the course of 30 days. TUSD has also faced stability issues with its intended dollar-peg, dropping to the $0.97 range on Jan. 17 and Jan. 26, 2024.
Tron's USDD has experienced a modest increase of 1.1%, while the Frax Dollar (FRAX) recorded a slight decrease of 0.1%. In the past month, Paxos' USDP witnessed a decline of 4.3%, whereas Paypal's PYUSD achieved a notable rise of 13.6%. Meanwhile, the tenth-ranked stablecoin, Alchemix USD (ALUSD), saw a decrease of 0.9%.
As we conclude this month's chapter in the stablecoin saga, a vibrant clash of forces reminiscent of those seen in 2023 has impacted most stablecoins outside the top trio. USDT, USDC, and DAI have maintained their positions, while emerging players like FDUSD and PYUSD are climbing the ranks. Meanwhile, former frontrunners such as BUSD and GUSD have dropped out of the top ten. This path, characterized by fluctuations and milestones, mirrors the broader story of the evolving crypto economy.
What are your thoughts on the growth of the stablecoin economy in the first month of 2024? Share your opinions in the comments section below.
Frequently Asked Questions
How is gold taxed within an IRA?
The fair market value of gold sold is the basis for tax. Gold is not subject to tax when it's purchased. It isn't considered income. If you sell it later, you'll have a taxable gain if the price goes up.
You can use gold as collateral to secure loans. Lenders look for the highest return when you borrow against assets. This usually involves selling your gold. This is not always possible. They may keep it. They may decide to resell it. In either case, you risk losing potential profits.
If you plan on using your gold as collateral, then you shouldn't lend against it. You should leave it alone if you don't intend to lend against it.
Can I purchase gold with my self directed IRA?
Although you can buy gold using your self-directed IRA account, you will need to open an account at a brokerage like TD Ameritrade. If you have an existing retirement account, you can transfer funds to another one.
The IRS allows individuals up to $5.500 annually ($6,500 if you are married and filing jointly). This can be contributed to a traditional IRA. Individuals can contribute up $1,000 per annum ($2,000 if they are married and jointly) directly to a Roth IRA.
If you do decide to invest in gold, you'll want to consider purchasing physical bullion rather than investing in futures contracts. Futures contracts can be described as financial instruments that are determined by the gold price. These financial instruments allow you to speculate about future prices without actually owning the metal. But physical bullion refers to real gold and silver bars you can carry in your hand.
Is it possible to hold a gold ETF within a Roth IRA
You may not have this option with a 401(k), however, you might want to consider other options, like an Individual retirement account (IRA).
Traditional IRAs allow for contributions from both employees and employers. You can also invest in publicly traded businesses by creating an Employee Stock Ownership Plan (ESOP).
An ESOP offers tax benefits because employees can share in the company stock and any profits that it generates. The money invested in ESOPs is taxed at a lower rate that if it were owned directly by an employee.
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 do not have to be taxable
Is gold a good investment IRA?
Gold is an excellent investment for any person who wants to save money. It can be used to diversify your portfolio. There is much more to gold than meets your eye.
It has been used as a currency throughout history and is still a popular method of payment. It's sometimes called “the world's oldest money”.
But gold, unlike paper currency, which is created by governments, is mined out from the ground. Because it is rare and difficult to make, it is extremely valuable.
The supply and demand factors determine how much gold is worth. If the economy is strong, people will spend more money which means less people can mine gold. This results in gold prices rising.
On the other hand, people will save cash when the economy slows and not spend it. This causes more gold to be produced, which lowers its value.
This is why both individuals as well as businesses can benefit from investing in gold. If you have gold to invest, you will reap the rewards when the economy expands.
You'll also earn interest on your investments, which helps you grow your wealth. You won't lose your money if gold prices drop.
How much gold should you have in your portfolio?
The amount of capital that you require will determine how much money you can make. You can start small by investing $5k-10k. As you grow, it is possible to rent desks or office space. Renting out desks and other equipment is a great way to save money on rent. Rent is only paid per month.
You also need to consider what type of business you will run. In my case, we charge clients between $1000-2000/month, depending on what they order. If you are doing this type of thing, it is important to think about how much you can expect from each client.
Because freelance work pays freelancers, you won't likely get a monthly income if you do freelance work. Therefore, you might only get paid one time every six months.
You must first decide what kind and amount of income you are looking to generate before you can calculate how much gold will be needed.
I recommend starting with $1k-$2k in gold and working my way up.
How to Open a Precious Metal IRA
The first step in opening an Individual Retirement Account, (IRA), is to decide if it's something you want. You must complete Form 8606 to open an account. To determine which type of IRA you qualify for, you will need to fill out Form 5204. You must complete this form within 60 days of opening your account. Once you have completed this form, it is possible to begin 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 be identical to an ordinary IRA.
To be eligible to have a precious metals IRA you must meet certain criteria. The IRS says you must be 18 years old and have earned income. Your earnings cannot exceed $110,000 per year ($220,000 if married and filing jointly) for any single tax year. Contributions must be made regularly. These rules apply whether you're contributing through an employer or directly from your paychecks.
You can use a precious-metals IRA to purchase gold, silver and palladium. But, you'll only be able to purchase physical bullion. This means you won’t be able to trade stocks and bonds.
However, investing in precious metals via an IRA has two serious drawbacks. First, they don't have the same liquidity as stocks or bonds. It's also more difficult to sell them when they are needed. Second, they don't generate dividends like stocks and bonds. Also, they don't generate dividends like stocks and bonds. You will eventually lose money rather than make it.
What does gold do as an investment?
Supply and demand determine the gold price. Interest rates are also a factor.
Because of their limited supply, gold prices can fluctuate. There is also a risk in owning gold, as you must store it somewhere.
- 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)
- 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)
- (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)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
- 7 U.S. Code SS7 – Designation Boards of Trade as Contract Markets
- 26 U.S. Code SS 408 – Individual retirement accounts
Investing gold vs. stocks
These days, it might seem quite risky to invest your money in gold. The reason behind this is that many people believe that gold is no longer profitable to invest in. This belief stems from the fact that most people see gold prices being driven down by the global economy. People believe that investing in gold would result in them losing money. In reality, however, there are still significant benefits that you can get when investing in gold. Below we'll look at some of them.
Gold is one of the oldest forms of currency known to man. It has been in use for thousands of year. It is a valuable store of value that has been used by many people throughout the world. As a means of payment, South Africa and many other countries still rely on it.
It is important to determine the price per Gram that you will pay for gold when making a decision about whether or not to invest. If you're interested in buying gold bullion, it is crucial that you decide how much per gram. You could contact a local jeweler to find out what their current market rate is.
It's also important to note that, although gold prices are down in recent months, the costs of producing it have risen. So, although gold prices have declined in recent years, the cost of producing it has not changed.
When deciding whether to buy gold, another thing to consider is how much gold you intend on buying. It makes sense to save any gold you don't need to purchase if your goal is to use it for wedding rings. However, if you are planning on doing so for long-term investments, then it is worth considering. Profitable gold can be sold at a lower price than it was when you bought it.
We hope this article helped you to gain a better appreciation of gold as a tool for investment. 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: Stablecoin Market Cap Surges $4.85 Billion in 30 Days; USDT, USDC, FDUSD Lead the Way
Sourced From: news.bitcoin.com/stablecoin-market-cap-climbs-4-85-billion-in-30-days-usdt-usdc-fdusd-spearhead-growth/
Published Date: Wed, 31 Jan 2024 14:30:53 +0000