Introduction
The stablecoin market concluded 2023 with a combined value of around $131.69 billion in terms of market capitalization. However, only two out of the top ten stablecoins experienced increases in their 30-day supply. Tether, the leading U.S. dollar-pegged crypto asset, observed a 2.5% uptick in its supply, while the newcomer, First Digital USD, enjoyed a substantial 85.7% rise.
Market Performance
Although the stablecoin market experienced a significant decline in 2022, it ascended once more towards the close of 2023, reaching heights unseen since last May. However, among the top ten stablecoins by market capitalization, only two witnessed an uptick in supply over the last 30 days. Tether (USDT), the largest stablecoin by market valuation, experienced a 2.5% boost in supply from Dec. 1, 2023, to Jan. 1, 2024. Presently, USDT holds a market capitalization of $91.86 billion.
Other Stablecoin Performances
USDC experienced a slight 0.2% dip, while DAI encountered a 1.7% decline. The greenback-pegged TrueUSD (TUSD) underwent a 22% contraction in its supply during December. In contrast, the fifth-ranked stablecoin, First Digital USD (FDUSD), surged by 85.7%, currently boasting a market valuation of $1.8 billion. BUSD noted a supply reduction of approximately 39% last month, with its market cap now hovering at just over $1 billion. Additionally, Tron's USDD also saw a downtick, with 1.3% of its total supply diminishing in the past 30 days.
Emerging Stablecoins
FRAX and USDP experienced respective declines ranging from 3.2% to 16.7%. Meanwhile, Paypal's new stablecoin PYUSD notched a significant 68.8% increase, surpassing Liquity USD (LUSD) this month. As of Jan. 1, PYUSD's total supply exceeded 264 million units. In the last 24 hours, the global trade volume has hovered around $64 billion, with stablecoins making up over $42 billion of that activity. This implies that for every ten trades, stablecoins are used in more than six.
New Paths in the Crypto Economy
In the past month, numerous stablecoin supplies have seen a contraction, while others have marked considerable growth, forging new paths in the crypto economy. PYUSD, introduced by a behemoth in the payments sector Paypal, stands in contrast to the emerging yet rapidly growing FDUSD, which has swelled impressively in size throughout the end of 2023. Additionally, even after shedding a notable portion of its supply over the preceding year, BUSD continues to maintain strong daily trading volumes.
Conclusion
The stablecoin market's performance in December showcased a mix of ups and downs. While some stablecoins experienced increases in their supply, others faced contractions. The emergence of new stablecoins and the growth of existing ones indicate the ever-evolving nature of the crypto economy. Share your thoughts and opinions about the stablecoin market action in December in the comments section below.
Frequently Asked Questions
Which type of IRA works best?
When choosing an IRA, it is important to choose one that suits your lifestyle and goals. You need to decide whether you want to maximize tax deduction on your contributions, minimize taxes now but pay penalties later, and if you just want to avoid taxes.
If you're saving for retirement and don't have much money invested, the Roth option could make sense. It's also worth considering if your plan is to work after the age of 59 1/2.
The traditional IRA is better if you want to retire earlier because you will likely owe tax on your earnings. The Roth IRA could be more beneficial if you intend to continue working after age 65. This allows you the freedom to withdraw some, or all, of your earnings.
Are silver and gold IRAs a good idea for you?
This could be a great opportunity for those who want to easily invest in both gold or silver simultaneously. There are also many other options. Please feel free to reach out to us with any questions. We are always happy to assist!
What are the three types?
There are three types of IRAs. Traditional, Roth, and SEP. Each type offers its advantages and disadvantages. Each of these types will be described below.
Traditional Individual Retirement Account (IRA)
A traditional IRA allows for you to contribute pretax money to an account, where you can defer tax on contributions made now and earn interest. You can withdraw money from the account tax-free after you retire.
Roth IRA
Roth IRAs allow you to deposit after-tax dollars into an account. This allows earnings to grow tax-free. If you withdraw funds for retirement, your withdrawals from the account are exempted of tax.
SEP IRA
This is similar with a Roth IRA, but employees are required to make additional contributions. These additional contributions are taxed, but any earnings grow tax-deferred once again. You may choose to convert the entire amount to a Roth IRA when you leave the company.
Statistics
- You can only purchase gold bars of at least 99.5% purity. (forbes.com)
- The maximum yearly contribution to an individual's IRAs is currently $6,000 ($7,000 for those 50 years or older), or 100% of earned income, whichever is less. (monex.com)
- The IRS also allows American Eagle coins, even though they do not meet gold's 99.5% purity standard. (forbes.com)
- Same tax rules as traditional IRA SEP IRA contributions in 2022 are limited to 25% of compensation or $66,000, whichever is less Before setting up a Silver IRA, understand the fees and IRS restrictions. (sltrib.com)
External Links
investopedia.com
regalassets.com
forbes.com
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
kitco.com
How To
Precious Metals Approved by the IRA
IRA-approved metals are great investments. Various options can help diversify your portfolio and protect against inflation from gold bars to silver coins.
Precious metal investments products can be purchased in two forms. Physical bullion products such bars or coins are considered to be physical assets, as they exist in tangible form. However, exchange-traded fund (ETFs), which are financial instruments, track the price movement of an underlying assets, such as gold, and can be purchased directly from the company issuing them. ETFs work just like stock exchange stocks and can be bought directly by the company issuing them.
There are various types of precious metals available for purchase. Gold and silver are often used for jewelry making and decorating, while platinum and palladium are more commonly associated with luxury items. Palladium tends to hold its value better than platinum, which makes it ideal for industrial uses. Silver is also useful for industrial purposes, although it is usually preferred for decorative applications.
Physical bullion products tend to be more expensive due to the cost of mining and refining raw materials. But they are generally safer than traditional paper currencies and provide buyers with more security. For example, consumers can lose confidence in the currency or look for alternative currencies when the U.S. dollars loses its purchasing power. Contrary to this, physical bullion does not rely on trust among countries or between companies. They are instead backed by central banks and governments, which gives customers security.
Prices for gold fluctuate depending on demand and supply. When demand increases, the price rises; conversely, when supply exceeds demand, the price drops. Investors have the opportunity to profit by fluctuations in gold's price. Investors who own physical bullion products benefit from these fluctuations because they receive a higher return on their money.
Unlike traditional investments, precious metals cannot be affected by economic recessions or interest rate changes. As long demand is strong, gold prices will continue to climb. Precious metals, which are safe havens for times of uncertainty, are therefore considered to be safe havens.
The most well-known precious metals are:
- Gold – The oldest form of precious metal, gold is also known as “yellow” metal. While gold is a well-known element, it is very rare to find underground. Most of the gold reserves in the world are located in South Africa.
- Silver – After gold, silver is the second most precious precious metal. Silver is also mined from natural resources, just like gold. Silver, unlike gold, is often extracted from ore instead of rock formations. Because of its durability and malleability, as well as resistance to tarnishing, silver is widely used in commerce and industry. The United States accounts for more than 98% global silver production.
- Platinum – The third most valuable precious metallic is platinum. It can be used to make high-end medical equipment, fuel cells, and catalytic converters. Dental crowns, bridges, and fillings can also be made from platinum.
- Palladium: Palladium is the 4th most valuable precious metallic. Due to its strength and stability, it is quickly gaining popularity among manufacturers. Palladium can also be used in electronics, military technology, and automobiles.
- Rhodium – Rhodium is fifth most valuable precious metal. Rhodium is a rare metal, but it is highly sought-after because of its use as a catalyst for automobile engines.
- Ruthenium – Ruthenium ranks sixth in the list of most valuable precious metals. Although there is a limited supply of palladium and platinum, ruthenium can be found in abundance. It is used for steel manufacturing, chemical manufacturing, and aircraft engines.
- Iridium – Iridium is the seventh most valuable precious metal. Iridium plays an important role in satellite technology. It is used to construct orbiting satellites that transmit television signals, telephone calls, and other communications.
- Osmium – Osmium, the eighth most precious precious metal, is also known as Osmium. Osmium is commonly used in nuclear reactors because of its ability to withstand extreme temperatures. Osmium is used in medicine, cutting tools, jewelry, as well as medicine.
- Rhenium- Rhenium, the ninth most precious precious metal, is Rhenium. Rhenium can be used to refine oil and gas, make semiconductors and rocketry.
- Iodine: Iodine, the tenth highest-valued precious metal, is also known as Iodine. Iodine can be used in radiography, photography, and pharmaceuticals.
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