The decentralized finance (defi) market has experienced a notable recovery as the total value locked (TVL) surpasses $40 billion. This milestone comes after the TVL remained below this level since mid-August. Furthermore, the top 100 defi coins by market capitalization are just shy of reaching the $50 billion mark.
Defi Market Bounces Back as TVL Hits $41.42 Billion
Since October 23, the TVL in defi has exceeded $40 billion and currently stands at $41.42 billion, as reported by defillama.com. All ten leading defi protocols by TVL have witnessed double-digit gains in the past week.
During this time, Summer Finance and Aave have emerged as the frontrunners with gains exceeding 20%. Other significant gainers include Rocket Pool and Lido Finance. The TVL in defi last reached this level on August 15, 2023.
Over a 30-day period, nine out of the top ten defi protocols by TVL size have experienced gains. However, Uniswap recorded a monthly loss of 15.94%. Aave and Justlend were the leading gainers for the month, securing gains of approximately 17.15% each.
Out of the total $41.42 billion TVL in defi, $20.62 billion is in ethereum (ETH) liquid staking protocols. This represents 49.78% of the current TVL in defi and stems from ethereum's liquid staking market. Additionally, four out of the top ten defi protocols focus on lending.
While the TVL in defi has shown improvement, the top 100 defi coins are valued at $49.95 billion. In the past 24 hours, these defi tokens have witnessed a global trade volume of $41.97 billion. Among the top ten, chainlink (LINK) experienced the largest increase this week, rising 43.1% against the U.S. dollar.
Lido's DAO token, LDO, saw a 22% increase, and Injective (INJ) witnessed a 37.7% increase. Other tokens such as SURE, TRB, BOND, and KWENTA also observed notable gains in the past week. Conversely, STPT, BNT, NRV, and RBN experienced losses ranging from 4% to 13%.
Despite the broader upward trend in the crypto market, a total of 17 coins from the top 100 defi coins recorded losses this week.
What are your thoughts on the recent developments in the decentralized finance realm? Feel free to share your opinions and insights in the comments section below.
Frequently Asked Questions
What precious metals can you invest in for retirement?
Gold and silver are the best precious metal investments. Both can be easily bought and sold, and have been around since forever. If you want to diversify your portfolio, you should consider adding them to your list.
Gold: Gold is one of man's oldest forms of currency. It's stable and safe. Because of this, it is considered a great way of preserving wealth during times when there are uncertainties.
Silver: The popularity of silver has always been a concern for investors. This is a great choice for people who want to avoid volatility. Silver is more volatile than gold. It tends to rise rather than fall.
Platinum: This precious metal is also becoming more popular. Like gold and silver, it's very durable and resistant to corrosion. It is, however, more expensive than its competitors.
Rhodium – Rhodium is used to make catalytic conversions. It is also used to make jewelry. It is also quite affordable compared with other types of precious metals.
Palladium: Palladium has a similarity to platinum but is more rare. It's also much more affordable. It's a popular choice for investors who want to add precious metals into their portfolios.
How much gold should your portfolio contain?
The amount that you want to invest will dictate how much money it takes. If you want to start small, then $5k-$10k would be great. As you grow, it is possible to rent desks or office space. You don't need to worry about paying rent every month. You just pay per month.
You also need to consider what type of business you will run. In my case, I run a website-creation company. Our clients pay us between $1000-2000/month and depending on their order. If you are doing this type of thing, it is important to think about how much you can expect from each client.
As freelance work requires you to be paid freelancers, your monthly salary won't be as high as mine. You might get paid only once every six months.
You need to determine what kind or income you want before you decide how much of it you will need.
I suggest starting with $1k-2k gold and building from there.
What are the pros and cons of a gold IRA?
An Individual Retirement Plan (IRA) has a major advantage over regular savings accounts. It doesn't tax any interest earned. This makes an IRA a great choice for people who are looking to save money but don’t want to pay any tax on the interest earned. There are some disadvantages to this investment.
You may lose all your accumulated savings if you take too much out of your IRA. The IRS may prevent you from taking out your IRA funds until you reach 59 1/2. If you do withdraw funds, you'll need to pay a penalty.
A disadvantage to managing your IRA is the fact that fees must be paid. Many banks charge between 0.5%-2.0% per year. Other providers charge monthly management fees ranging from $10 to $50.
If you prefer your money to be kept out of a bank, then you will need insurance. In order to make a claim, most insurers will require that you have a minimum amount in gold. Insurance that covers losses upto $500,000.
If you choose to go with a gold IRA, you'll need to determine how much gold you want to use. Some providers limit the number of ounces of gold that you can own. Others allow you to pick your weight.
It is also up to you to decide whether you want to purchase physical gold or futures. Physical gold is more expensive than gold futures contracts. Futures contracts provide flexibility for purchasing gold. You can set up futures contracts with a fixed expiration date.
It is also important to choose the type of insurance coverage that you need. The standard policy does not include theft protection or loss caused by fire, flood, earthquake. The policy does not cover natural disasters. If you live in a high-risk area, you may want to add additional coverage.
Insurance is not enough. You also need to think about the cost of gold storage. Storage costs are not covered by insurance. For safekeeping, banks typically charge $25-40 per month.
If you decide to open a gold IRA, you must first contact a qualified custodian. A custodian helps you keep track of your investments, and ensures compliance with federal regulations. Custodians cannot sell your assets. Instead, they must hold them as long as you request.
Once you've decided which type of IRA best suits your needs, you'll need to fill out paperwork specifying your goals. Information about your investments such as stocks and bonds, mutual fund, or real property should be included in your plan. You should also specify how much you want to invest each month.
After filling in the forms, please send them to the provider. After receiving your application, the company will review it and mail you a confirmation letter.
If you are thinking of opening a gold IRA for retirement, a financial professional is a great idea. Financial planners are experts in investing and will help you decide which type of IRA works best for your situation. You can also reduce your insurance costs by working with them to find lower-cost alternatives.
How much is gold taxed under a Roth IRA
An investment account's tax rate is determined based upon its current value, rather than what you originally paid. All gains, even if you have invested $1,000 in a mutual funds stock, are subject to tax.
However, if the money is deposited into a traditional IRA/401(k), the tax on the withdrawal of the money is not applicable. Capital gains and dividends earn you no tax. This applies only to investments made for longer than one-year.
The rules governing these accounts vary by state. Maryland's rules require that withdrawals be taken within 60 days after you turn 59 1/2. Massachusetts allows you up to April 1st. And in New York, you have until age 70 1/2 . To avoid penalties, plan ahead so you can take distributions at the right time.
How much should precious metals make up your portfolio?
To answer this question, we must first understand what precious metals are. Precious elements are those elements which have a high price relative to other commodities. They are therefore very attractive for investment and trading. Today, gold is the most commonly traded precious metal.
However, many other types of precious metals exist, including silver and platinum. While gold's price fluctuates during economic turmoil, it tends to remain relatively stable. It is not affected by inflation or deflation.
The general trend is for precious metals to increase in price with the overall market. That said, they do not always move in lockstep with each other. If the economy is struggling, the gold price tends to rise, while the prices for other precious metals tends to fall. Investors expect lower interest rate, making bonds less appealing investments.
However, when an economy is strong, the reverse effect occurs. Investors want safe assets such Treasury Bonds and are less inclined to demand precious metals. They are more rare, so they become more expensive and less valuable.
Therefore, to maximize profits from investing in precious metals, you must diversify across multiple precious metals. Furthermore, because the price of precious Metals fluctuates, it is best not to focus on just one type of precious Metals.
Who has the gold in a IRA gold?
An individual who has gold is considered to be a “form of money” by the IRS and subject to taxation.
To take advantage of this tax-free status, you must own at least $10,000 worth of gold and have been storing it for at least five years.
Owning gold can also help protect against inflation and price volatility, but it doesn't make sense to hold gold if you're not going to use it.
If you plan to sell the gold one day, you will need to report its worth. This will affect how much capital gains tax you owe on cash you have invested.
Consult a financial advisor or accountant to determine your options.
- 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)
- (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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (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)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Saddam Hussein's InvasionHelped Uncage a Bear In 1991 – WSJ
- How do you keep your IRA Gold at Home? It's Not Exactly Legal – WSJ
Tips for Investing Gold
Investing in Gold remains one of the most preferred investment strategies. This is because there are many benefits if you choose to invest in gold. There are several options to invest in the gold. Some people prefer to buy gold coins in physical form, while others prefer to invest in gold ETFs.
Before buying any kind of gold, you need to consider these things.
- First, verify that your country permits gold ownership. If your country allows you to own gold, then you are allowed to proceed. You might also consider buying gold in foreign countries.
- Second, it is important to know which type of gold coin you are looking for. You have options: you can choose from yellow gold, white or rose gold.
- The third factor to consider is the price for gold. It is best to start small and work your way up. You should diversify your portfolio when buying gold. Diversify your investments in stocks, bonds or real estate.
- Lastly, you should never forget that gold prices change frequently. Be aware of the current trends.
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