Binance and Coinbase's Market Grip
Statistical data reveals that Binance and Coinbase, two dominant players in the cryptocurrency exchange arena, collectively possess 11.85% of the $1.68 trillion digital currency economy. Moreover, these leading trading platforms control 7.83% of the total bitcoin supply, underscoring their significant market influence.
Market Leadership and Trading Volume
Binance and Coinbase rank as the world's top crypto exchanges in terms of their daily trading volumes and the cryptocurrency reserves they manage. In the most recent 24-hour period on Saturday, Binance led with a substantial $15.87 billion in trading activity, while Coinbase secured its position as the weekend's second-largest exchange with $2.91 billion in trades.
Onchain data sourced from Arkham Intelligence further reveals that these exchanges collectively maintain cryptocurrencies valued at $199.14 billion, which represents 11.85% of the entire value of the crypto economy. Binance leads the pack with $136.47 billion, while Coinbase holds around $62.67 billion in crypto value. In terms of bitcoin (BTC) holdings, Coinbase holds 978,577 BTC, while Binance commands 666,922 BTC.
BTC and ETH Holdings
Combined, these two exchanges control 1,645,499 BTC, which is worth $70.49 billion at current exchange rates, or 7.83% of BTC's 21 million capped supply. Additionally, Coinbase and Binance command approximately 8.39% of the 19,597,705 BTC in circulation. In terms of ethereum (ETH), Binance holds 4.47 million, while Coinbase has an even larger stash with 7.058 million ether.
BNB and Other Assets
Binance's largest stash of crypto assets according to Arkham is the 164.54 million BNB, which is worth $49.70 billion. The company's BTC stash is the second largest, and tether (USDT) is the third largest asset by value on Binance, as the exchange owns 25.39 billion USDT. Besides ether, the fifth largest asset by value is FDUSD, and Binance commands 1.9 billion.
As for Coinbase, besides BTC and ETH, the third largest asset by value on the San Francisco-based exchange is LINK, as it owns 77.67 million worth $1.11 billion. The fourth largest asset is USDC with 575.63 million, and the company's stash of 921.875 BNB is in fourth place, worth $278 million. Other notable coin reserves on Coinbase include 930 million GRT, 11.91 million UNI, and 160 million ZRX.
Implications for the Crypto Sector
The dominance of Binance and Coinbase in the crypto sector is a testament to the evolving landscape of digital finance. Their substantial holdings in various cryptocurrencies not only highlight their market strength but also signal an industry where key players exert considerable influence. This concentration of crypto assets may shape the future trajectory of digital currency markets, potentially impacting future trends, bitcoin's overall liquidity, and the broader financial ecosystem.
What are your thoughts on Coinbase and Binance's crypto reserves? Share your opinions in the comments section below.
Frequently Asked Questions
What is a Precious Metal IRA and How Can You Benefit From It?
Precious and precious metals are excellent investments for retirement accounts. They have been around for centuries and are still very valuable today. It is a great way of diversifying your portfolio and protecting against inflation by investing in precious metals like gold, silver, or platinum.
Certain countries even allow their citizens to save money in foreign currencies. You can buy Canada gold bars and keep them home. Then, when you travel to Canada, you can make the same gold bars and sell them for Canadian Dollars.
This is a quick and easy way of investing in precious metals. It's especially useful for anyone who lives outside North America.
How can I withdraw from an IRA with Precious Metals?
You may consider withdrawing your funds if you have an account with a precious metal IRA company such as Goldco International Inc. You can sell your metals at a higher price if they are still in the account than if you left them there.
Here is how to withdraw precious metal IRA funds.
First, you need to find out if the provider of your precious metal IRA allows withdrawals. Some companies permit this, while some don't.
The second step is to determine if selling your metals will allow you tax-deferred gain. This benefit is provided by almost all IRA providers. Some IRA providers offer this benefit, but others don't.
To find out if fees apply, thirdly check with your precious-metal IRA provider. Extra fees may apply for withdrawals.
Fourth, ensure that you keep track your precious metal IRA investment for at least 3 years after selling them. You should therefore wait until January each year to calculate capital losses on your investment portfolio. Next, fill out Form 8949 to determine the amount you gained.
In addition to filing Form 8949, you must also report the sale of your precious metals to the IRS. This step ensures that you pay taxes on all profits earned from your sales.
Consider consulting a trusted attorney or accountant before selling your precious metals. They will ensure you are following all the procedures and avoid making costly mistakes.
What are some of the advantages and disadvantages to a gold IRA
If you want to diversify your holdings but aren't able to access traditional banks services, a gold IRA is a great option. It allows you to invest freely in precious metals, such as gold, silver and platinum until they are withdrawn.
The downside is that withdrawing money early will pay ordinary income tax on the earnings. But because these funds are held outside of the country, there is little chance of them being seized by creditors when you default on your loan.
A gold IRA might be the right choice for you if you enjoy owning gold and don't worry about taxes.
How Much of your IRA Should Be Made up of Precious Metals
Protecting yourself from inflation is best done by investing in precious metals such silver and gold. This is not only an investment for retirement, but it can also help you prepare for any economic downturn.
Gold and silver prices have increased significantly over the past few years, but they are still considered safe investments because they don't fluctuate as much as stocks do. These materials are always in demand.
The prices of gold and silver are generally predictable and stable. They tend to rise during economic growth and drop during recessions. This makes them excellent money-savers, and long-term investment options.
Your total portfolio should be 10 percent in precious metals. You can increase this percentage if you want further diversification.
Which type of IRA works best?
The most important thing when choosing an IRA for you is to find one that fits within your goals and lifestyle. Consider whether you are looking to maximize tax-deferred growth, minimize taxes and pay penalties later, avoid taxes, or both.
The Roth option can be a smart choice if your retirement savings are limited and you don't have any other investments. It's also worth considering if your plan is to work after the age of 59 1/2.
Traditional IRAs are more suitable if you intend to retire young. However, you will most likely owe taxes on any earnings from those funds. The Roth IRA is a better option if you plan to continue working well beyond age 65. It allows you to withdraw any or all of your earnings and not pay taxes.
- 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)
- 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)
How to make your IRA a gold IRA
Are you looking to transfer your retirement savings out of a traditional IRA in favor of a gold IRA. Well, this article will help you do just that. This is how you can make the switch.
“Rolling over” is the act of transferring money from one type (traditional) to another type (gold). Rolling an account over offers tax advantages. Others prefer to invest in tangible assets, such as precious 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. That means that if you invest $5,000 in a Traditional IRA today, then after five years, you'll only be able to take out $4,850. However, if you put the same amount into a Roth IRA you would be able keep every penny.
Here's what you should know if you're looking to convert from a traditional IRA to 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. However, if your IRA is rolled over, these earnings will not be subjected to income tax until age 59 1/2.
Once you have made up your mind, it is time to open a brand new account. You may be asked for proof of identity (e.g., a Social Security or passport card, birth certificate, etc.). Next, you will need to complete paperwork proving your ownership of the IRA. Once you've completed the forms, you'll submit them to your bank. They will verify your identity as well as give instructions on how to send wire transfers and checks.
The fun part is here. You'll deposit cash into your new account and wait for the IRS to approve your requests. After approval, you'll receive a letter stating that funds can be withdrawn.
That's it! Now, all you have left to do is relax and watch your wealth grow. If you decide to convert your IRA you can close it and transfer the remaining balance into a different IRA.
By: Jamie Redman
Title: Binance and Coinbase Hold 11% of Crypto Economy’s Net Value, Leading in BTC and ETH Reserves
Sourced From: news.bitcoin.com/binance-and-coinbase-hold-11-of-crypto-economys-net-value-leading-in-btc-and-eth-reserves/
Published Date: Sat, 13 Jan 2024 21:30:31 +0000