The market scenario for stablecoins has not shown considerable growth over the past two months, with the total market cap barely surpassing $123 billion by the third week of October. The global crypto economy currently sees 22.96% of its trading volume in stablecoin transactions, a significant decrease compared to 74% just the day before. This article will analyze the fluctuations in the stablecoin market and the potential implications for the future.
Wave of Changes: Stablecoin Valuations Display Inconsistent Trends
The past month has seen a mixed bag of performance across various stablecoins. Tether (USDT) showed a modest increase of 0.5% in its supply, while USD Coin (USDC) experienced a decline of 4.3%. DAI, the third-largest stablecoin by market cap, saw a minimal reduction of 1.3%, whereas TrueUSD (TUSD) had an impressive increase of 6.5%. BUSD, on the other hand, witnessed a significant 15.5% decrease in its supply.
BUSD: A Close Call with the $2 Billion Threshold
As of now, BUSD's market cap hovers around $2.13 billion, closely flirting with the risk of dropping below $2 billion. Besides, Tron's USDD saw no change in its supply over the past month, FRAX saw a minor increase of 0.5%, while Pax Dollar (USDP) faced a notable decline of 7.2%. First Digital USD (FDUSD), a recent entrant, had an 18.7% increase in its supply. As of October 13, 2023, Paypal's newly launched stablecoin ranks as the 13th largest, with a circulation of 119 million.
Trading Volumes: A Roller Coaster Ride
On October 13, stablecoins accounted for 22.96% of the $62 billion global trade volume, a stark contrast from the 74% seen just the day before. That same evening, the stablecoin economy briefly dipped below the $123 billion mark, with global trade volume falling to $34.13 billion.
Leadership Change in Tether
In other news, Tether announced a major reshuffling in its leadership. Paolo Ardoino, formerly serving as the Chief Technology Officer, is set to become the CEO in December. Concurrently, former CEO Jean-Louis van der Velde will move into an advisory role.
USDR: A Setback in Parity
USDR, a lesser-known stablecoin managed by Tangibledao, faced a setback this week, trading at half its previous $1 parity. The coin lost its parity on October 11 and has yet to recover. Although the managing team has promised to address the issue, their statement on a certain social media platform remains private, hindering public responses. Consequently, USDR joins the growing list of fiat-pegged tokens that have lost their dollar pegs.
We welcome your insights and viewpoints on these recent developments in the stablecoin market and the news associated with them. Please share your thoughts in the comments section below.
Frequently Asked Questions
Should You Invest Gold in Retirement?
How much money you have saved, and whether or not gold was an option when you first started saving will determine the answer. If you're unsure about which option to choose then consider investing in both.
Gold offers potential returns and is therefore a safe investment. It is a good choice for retirees.
Most investments have fixed returns, but gold's volatility is what makes it unique. This causes its value to fluctuate over time.
But this doesn't mean you shouldn't invest in gold. This just means you need to account for fluctuations in your overall portfolio.
Another benefit of gold is that it's a tangible asset. Gold is much easier to store than bonds and stocks. It can also be transported.
As long as you keep your gold in a secure location, you can always access it. You don't have to pay storage fees for physical gold.
Investing in gold can help protect against inflation. Because gold prices tend to rise along with other commodities, it's a good way to hedge against rising costs.
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 benefit to investing in gold? You can always sell it. Just like stocks, you can liquidate your position whenever you need cash. You don’t even need to wait until retirement to liquidate your position.
If you do decide to invest in gold, make sure to diversify your holdings. Do not put all your eggs in one basket.
Also, don't buy too much at once. Start with just a few drops. Add more as you're able.
Don't expect to be rich overnight. Instead, the goal here is to build enough wealth to not need to rely upon Social Security benefits.
Although gold might not be the right investment for everyone it could make a great addition in any retirement plan.
Can the government take your gold?
Your gold is yours, so the government cannot confiscate it. It's yours, and you earned it by working hard. It belongs entirely to you. There may be exceptions to this rule. If you are convicted of fraud against the federal government, your gold can be forfeit. Also, if you owe taxes to the IRS, you can lose your precious metals. However, if you do not pay your taxes, you can still keep your gold even though it is considered property of the United States Government.
What precious metals do you have that you can invest in for your retirement?
It is gold and silver that are the best precious metal investment. They are both simple to purchase and sell, and they have been around for a long time. They are a great way to diversify your portfolio.
Gold: Gold is one the oldest forms currency known to man. It is very stable and secure. Because of this, it is considered a great way of preserving wealth during times when there are uncertainties.
Silver: Silver has been a favorite among investors for years. It's a good choice for those who want to avoid volatility. Silver is more volatile than gold. It tends to rise rather than fall.
Platinium: Another form of precious metal is platinum, which is becoming more popular. It is very durable and resistant against corrosion, much like silver and gold. It's also more expensive than the other two.
Rhodium. Rhodium is used as a catalyst. It is also used to make jewelry. It is relatively affordable when compared to other types.
Palladium – Palladium is an alternative to platinum that's more common but less scarce. It is also cheaper. It's a popular choice for investors who want to add precious metals into their portfolios.
- (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)
- 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)
- 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)
- Saddam Hussein’s InvasionHelped Uncage a Bear In 1989 – WSJ
- Do you want to keep your IRA gold at home? It's Not Exactly Lawful – WSJ
Tips for Investing Gold
One of the most sought-after investment strategies is investing in gold. This is because there are many benefits if you choose to invest in gold. There are many ways to invest gold. Some people choose to purchase gold coins physically, while some prefer to invest with gold ETFs.
Before buying any kind of gold, you need to consider these things.
- First, you must check whether your country allows you to own gold. If your country allows you to own gold, then you are allowed to proceed. You can also look at buying gold abroad.
- Secondly, you should know what kind of gold coin you want. You have options: you can choose from yellow gold, white or rose gold.
- Thirdly, you should take into consideration the price of gold. Start small and build up. Diversifying your portfolio is a key thing to remember when purchasing gold. Diversifying your portfolio includes stocks, bonds, mutual funds, real estate, commodities, and mutual funds.
- Remember that gold prices are subject to change regularly. Be aware of the current trends.
By: Jamie Redman
Title: Unsteady Currents in the Stablecoin Market: An Analysis of Recent Developments
Sourced From: news.bitcoin.com/stablecoin-market-navigates-shifting-sands-as-tether-announces-new-ceo-and-usdr-depegs/
Published Date: Fri, 13 Oct 2023 18:30:29 +0000