Growth in Market Capitalization
In the past month, data reveals a significant increase in the combined market capitalization of leading stablecoins, rising from $131.71 billion to $136.56 billion. The top two stablecoins, Tether (USDT) and USD Coin (USDC), experienced notable expansions in their supplies, with increases of 4.8% and 7.2% respectively.
Stablecoin Economy on the Rise
Over the last 30 days, the stablecoin market experienced a growth of approximately $4.85 billion, based on data spanning from Dec. 30, 2023, to Jan. 30, 2024. The top stablecoin by market capitalization, Tether (USDT), witnessed a 4.8% increase in its supply, reaching $95.91 billion. Tether is now just 4.09 billion short of achieving a milestone of 100 billion tokens in circulation.
Circle's USD Coin (USDC) not only experienced a rise in supply, but its growth, at 7.2%, surpassed that of USDT in the past month. As the second-largest stablecoin by market cap, USDC now boasts a net worth of $26.50 billion, a climb from $24.71 billion just 30 days earlier. Following several months of redemptions, USDC has now observed two successive months of growth in token supply.
DAI and FDUSD: Fluctuations and Surges
Over the last month, Maker's stablecoin DAI 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, holds a market capitalization of $5.19 billion. Occupying the fourth spot among stablecoins, First Digital USD (FDUSD) witnessed the most significant surge in supply, escalating by 42.8%. Currently, FDUSD's market capitalization stands at $2.57 billion.
TUSD, USDD, and Others
In fifth place is TrueUSD (TUSD), holding a market capitalization of approximately $1.47 billion. This past month, TUSD experienced a sharp decline in supply, diminishing by 30.6% over the course of 30 days. TUSD also had some stability issues with its intended dollar-peg this month, dropping to the $0.97 range on Jan. 17 and Jan. 26, 2024.
Tron's USDD 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%.
Fluctuations and Milestones in the Stablecoin Saga
As we wrap up this month's episode in the stablecoin saga, a vibrant clash of forces akin to those seen in 2023 has influenced most stablecoins beneath the top trio. USDT, USDC, and DAI have held their ground, while emerging players like FDUSD and PYUSD are ascending in the hierarchy. Meanwhile, former frontrunners such as BUSD and GUSD have dropped out of the top ten. This path, characterized by fluctuations and milestones, echoes the wider story of the evolving crypto economy.
What do you think about the stablecoin economy's growth during the first month of 2024? Share your thoughts and opinions about this subject in the comments section below.
Frequently Asked Questions
Which type of IRA could be used for precious metals
Many financial institutions and employers offer an individual retirement account (IRA) as an investment option. You can contribute to an IRA account which grows tax-deferred and can be withdrawn at any time.
An IRA allows you to save taxes and pay them later when you retire. This allows for more money to be deposited in your retirement plan today than having to pay taxes tomorrow on it.
An IRA's beauty is that earnings and contributions grow tax-free up to the time you withdraw them. You can face penalties if you withdraw funds before the deadline.
You can also make additional contributions to your IRA after age 50 without penalty. If you take out of your IRA during retirement you will owe income and a 10% federal penal.
Withdrawals before age 59 1/2 will be subject to a 5% IRS penal. Withdrawals between ages 59 1/2 and 70 1/2 are subject to a 3.4% IRS penalty.
A 6.2% IRS penalty applies to withdrawals exceeding $10,000 per annum.
What are the three types?
There are three types: Roth, Traditional, and SEP. There are three types of IRAs: Roth, Traditional, and SEP. Each has its own advantages and disadvantages. We'll go over each of them 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. Once you retire, withdrawals from the account are tax-free.
Roth IRAs allow after-tax dollars to go into an account. Earnings are exempt from tax. The account allows you to withdraw funds for retirement.
This is similar to a Roth IRA but requires additional contributions from employees. These additional contributions can be taxed. However, any earnings are now tax-deferred. The entire amount can be converted to a Roth IRA if you are leaving the company.
Do you need to open a Precious Metal IRA
It all depends on your investment goals and risk tolerance.
You should start an account if you intend to retire with the money.
It is likely that precious metals will appreciate over the long-term. They also offer diversification benefits.
Additionally, silver and Gold prices tends to move together. This makes them an excellent choice for investors in both assets.
Precious metal IRAs are not recommended for anyone who isn't planning to use their money for retirement and doesn't want any risk.
- Depending on your financial situation, most experts recommend you invest no more than 5% to 10% of your retirement funds in precious metals. (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)
- To qualify as IRA allowable precious metals and be accepted by STRATA, the following minimum fineness requirements must be met: Gold must be 99.5% pure, silver must be 99.9% pure, and platinum and palladium must both be 99.95% pure. (stratatrust.com)
- Silver must be 99.9% pure • (forbes.com)
- Gold IRA: Add some sparkle to your retirement nest egg
- Understanding China's Evergrande Crisis – Forbes Advisor
How to turn your IRA into a IRA with gold content
Are you looking to transfer your retirement savings out of a traditional IRA in favor of a gold IRA. This article will assist you in that endeavor. This is how you can make the switch.
“Rolling Over” refers to the process of transferring money between two types of IRAs (traditional and gold). Rolling over an account offers tax advantages. Some prefer to invest directly in physical assets like precious and rare metals.
There are two types IRAs – Traditional IRAs (or Roth IRAs). The difference is simple. Traditional IRAs allow investors the ability to deduct taxes whenever they withdraw their earnings. Roth IRAs are not. If you invest $5,000 in a Traditional IRA now, then you'll be able only to withdraw $4,000. However, if you put the same amount into a Roth IRA you would be able keep every penny.
These are the things you need to know if your goal is to convert from a traditional IRA or a gold IRA.
First, you need to decide whether to roll over your current balance into a new account or simply transfer funds from your old account to your new one. If you transfer money, income tax will apply to any earnings exceeding $10,000. If you decide to roll over your IRA you will not be subject to income tax on these earnings until you turn 59 1/2.
After making your decision, you can open a new financial account. You will likely need to show proof of identity, such as a passport, Social Security card, or birth certificate. Then, you'll fill out paperwork showing that you own the IRA. Once you have completed all the forms, you will submit them to bank. After verifying your identity, they will give you instructions about where to send wire transfers or checks.
Now comes the fun part. Once your IRS approves your request, you'll deposit cash in your new account. Once you have received approval, you will receive a letter that allows you to withdraw funds.
That's it! All you need to do now is watch your money grow. Remember that if you are unsure whether you want to convert your IRA, it is possible to close it and roll the balance over into a new IRA.
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