Defi Market Shows Resilience with TVL Reaching $41.42 Billion
The decentralized finance (defi) sector has experienced a significant rebound, as the total value locked (TVL) in defi protocols 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 on the cusp of reaching the $50 billion mark.
According to defillama.com, the TVL in defi has steadily climbed since October 23 and currently stands at $41.42 billion. Notably, all ten leading defi protocols by TVL have witnessed double-digit gains in the past week.
Key Gainers in the Defi Market
During this time, Summer Finance and Aave have emerged as frontrunners, with gains exceeding 20%. Rocket Pool and Lido Finance have also experienced significant growth. The current TVL in defi has not reached this level since August 15, 2023.
Over a 30-day period, nine out of the top ten defi protocols based on TVL have recorded gains. However, Uniswap saw a monthly loss of 15.94%. On the other hand, Aave and Justlend were the top gainers for the month, securing gains of approximately 17.15% each.
Ethereum Dominates the Defi Market
Out of the total TVL of $41.42 billion, $20.62 billion is locked in ethereum (ETH) liquid staking protocols. This accounts for 49.78% of the current TVL in defi and is primarily driven by ethereum's liquid staking market. Additionally, four of the top ten defi protocols focus on lending.
Defi Tokens and Their Performance
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 seen a global trade volume of $41.97 billion. Among the top ten, chainlink (LINK) experienced the highest increase this week, rising by 43.1% against the U.S. dollar.
Other notable performers include Lido's DAO token (LDO), which increased by 22%, and Injective (INJ), which saw a rise of 37.7%. Tokens such as SURE, TRB, BOND, and KWENTA also witnessed significant gains over the past week. However, STPT, BNT, NRV, and RBN faced losses ranging from 4% to 13%.
Despite the broader upward trend in the crypto market, 17 coins from the top 100 defi coins experienced losses this week.
Share Your Thoughts on Decentralized Finance
What are your opinions on the recent developments in the world of decentralized finance? Feel free to share your thoughts and insights in the comments section below.
Frequently Asked Questions
Is gold buying a good retirement option?
Although gold investment may not seem appealing at first glance due to the high average global gold consumption, it's worth considering.
The best form of investing is physical bullion, which is the most widely used. However, there are many other ways to invest in gold. Research all options carefully and make an informed decision about what you desire from your investments.
If you don't want to keep your wealth safe, buying shares in companies that extract gold and mining equipment could be a better choice. If you need cash flow from an investment, purchasing gold stocks is a good choice.
You can also put your money in exchange traded funds (ETFs). These funds allow you to be exposed to the price and value of gold by holding gold related securities. These ETFs typically include stocks from gold miners, precious metallics refiners, commodity trading companies, and other commodities.
What are the pros & con's of a golden IRA?
An Individual Retirement account (IRA) is a better option than regular savings accounts in that interest earned is exempted from tax. This makes an IRA great for people who want to save money but don't want to pay tax on the interest they earn. However, there are also disadvantages to this type of investment.
You could lose all of your accumulated money if you take out too much from your IRA. You might also not be able to withdraw from your IRA until the IRS deems you to be 59 1/2. If you do withdraw funds from your IRA you will most likely be required to pay a penalty.
The downside is that managing your IRA requires fees. Many banks charge between 0.5%-2.0% per year. Other providers charge monthly management fees ranging from $10 to $50.
You can purchase insurance if you want to keep your money out of a bank. A majority of insurance companies require that you possess a minimum amount gold to be eligible for a claim. You might be required to buy insurance that covers losses up to $500,000.
If you are considering a Gold IRA, you need to first decide how much of it you would like to use. Some providers limit the amount of gold that you are allowed to own. Others let you pick your weight.
Also, you will need to decide if you want to buy physical gold futures contracts or physical gold. Physical gold is more expensive than gold futures contracts. However, futures contracts give you flexibility when buying gold. They allow you to set up a contract with a specific expiration date.
Also, you will need to decide on the type of insurance coverage you would like. Standard policies don't cover theft protection, loss due to fire, flood or earthquake. It does provide coverage for damage from natural disasters, however. Additional coverage may be necessary if you reside in high-risk areas.
You should also consider the cost of storage for your gold. Storage costs are not covered by insurance. Safekeeping costs can be as high as $25-40 per month at most banks.
Before you can open a gold IRA you need to contact a qualified Custodian. Custodians keep track of your investments and ensure compliance with federal regulations. Custodians are not allowed to sell your assets. They must instead keep them for as long as you ask.
Once you have chosen the right type of IRA to suit your needs, it is time to fill out paperwork defining your goals. Information about your investments such as stocks and bonds, mutual fund, or real property should be included in your plan. Your monthly investment goal should be stated.
Once you have completed the forms, you will need to mail them to your provider with a check and a small deposit. The company will then review your application and mail you a letter of confirmation.
A financial planner is a good idea when opening a gold IRA. Financial planners are experts in investing and will help you decide which type of IRA works best for your situation. They can also help reduce your costs by suggesting cheaper options for purchasing insurance.
What are the benefits of a gold IRA
There are many benefits to a gold IRA. You can diversify your portfolio with this investment vehicle. You decide how much money is put in each account and when it is withdrawn.
You have the option of rolling over funds from other retirement account into a gold IRA. This is a great way to make a smooth transition if you want to retire earlier.
The best thing is that investing in gold IRAs doesn't require any special skills. They are readily available at most banks and brokerages. You do not need to worry about fees and penalties when you withdraw money.
But there are downsides. Gold has historically been volatile. Understanding why you want to invest in gold is essential. Are you looking for safety or growth? Is it for security or long-term planning? Only by knowing the answer, you will be able to make an informed choice.
If you plan on keeping your gold IRA alive for a while, you may want to consider purchasing more than 1 ounce of pure gold. One ounce won't be enough to meet all your needs. Depending on your plans for using your gold, you may need multiple ounces.
A small amount is sufficient if you plan to sell your gold. Even one ounce is enough. But you won't be able to buy anything else with those funds.
How does a gold IRA work?
The Gold Ira Accounts are tax-free investment options for those who want to make investments in precious metals.
Physical gold bullion coin can be purchased at any time. You don’t have to wait to begin investing in gold.
Owning gold as an IRA has the advantage of allowing you to keep it forever. Your gold holdings will not be subject to tax when you are gone.
Your gold is passed to your heirs without capital gains tax. And because your gold remains outside of the estate, you aren't required to include it in your final estate report.
First, an individual retirement account will be set up to allow you to open a golden IRA. After you have done this, an IRA custodian will be assigned to you. This company acts like a middleman between the IRS and you.
Your gold IRA Custodian will manage the paperwork and submit all necessary forms to IRS. This includes filing annual returns.
After you have created your gold IRA, the only thing you need to do is purchase gold bullion. Minimum deposit is $1,000 You'll get a higher rate of interest if you deposit more.
You'll have to pay taxes if you take your gold out of your IRA. If you are withdrawing your entire balance, you will owe income tax plus a 10% penalty.
Even if your contribution is small, you might not have to pay any taxes. However, there are some exceptions. If you take out 30% of your total IRA assets or more, you will owe federal income taxes and a 20 percent penalty.
It is best to not take out more than 50% annually of your total IRA assets. You could end up with severe financial consequences.
Can I hold a gold ETF in a Roth IRA?
While a 401k may not offer this option for you, it is worth considering other options, such an Individual Retirement Plan (IRA).
A traditional IRA allows for contributions from both employer and employee. Another option is to invest in publicly traded corporations with an Employee Stockownership Plan (ESOP).
An ESOP is a tax-saving tool because employees have a share of company stock as well as the profits that the business generates. The money in the ESOP can then be subject to lower tax rates than if the money were in the individual's hands.
An Individual Retirement Annuity (IRA) is also available. An IRA allows you to make regular payments throughout your life and earn income in retirement. Contributions to IRAs can be made without tax.
Can the government seize your gold?
Your gold is yours and the government cannot take it. You earned it through hard work. It belongs to your. But, this rule is not universal. For example, if you were convicted of a crime involving fraud against the federal government, you can lose your gold. If you owe taxes, your precious metals could be taken away. 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.
How Do You Make a Withdrawal from a Precious Metal IRA?
First, you must decide if you wish to withdraw money from your IRA account. You should also ensure that you have enough money to cover any fees and penalties associated with withdrawing funds.
A taxable brokerage account is a better option than an IRA if you are prepared to pay a penalty for early withdrawals. This option will require you to pay taxes on the amount that you withdraw.
Next, calculate how much money your IRA will allow you to withdraw. This calculation is dependent on several factors like your age when you take the money out, how long you have had the account, and whether or not your plan to continue contributing.
Once you know how much of your total savings to convert to cash, it's time to choose the type of IRA that you want. Traditional IRAs allow you to withdraw funds tax-free when you turn 59 1/2 while Roth IRAs charge income taxes upfront but let you access those earnings later without paying additional taxes.
Once you have completed these calculations, you need to open your brokerage account. A majority of brokers offer free signup bonuses, as well as other promotions, to get people to open accounts. It is better to open an account with a debit than a creditcard in order to avoid any unnecessary fees.
When you do finally decide to withdraw from your precious metallic IRA, you will need a safe space where you can safely store your coins. Some storage facilities will take bullion bars while others require you only to purchase individual coins. Before you choose one, weigh the pros and cons.
For example, storing bullion bars requires less space because you aren't dealing with individual coins. However, you'll need to count every coin individually. You can track their value by keeping individual coins.
Some prefer to store their coins in a vault. Others prefer to store their coins in a vault. No matter what method you use, it is important to keep your bullion safe so that you can reap its benefits for many more years.
- (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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- 7 U.S. Code SS7 – Designation boards of trade as contract market authorities
- 26 U.S. Code SS 408 – Individual retirement account
- Fraud Advisory: Precious Metals Fraud
By: Jamie Redman
Title: Defi TVL Surpasses $40 Billion, Signaling Strong Recovery
Sourced From: news.bitcoin.com/value-locked-in-defi-surpasses-40-billion-marking-a-significant-recovery/
Published Date: Thu, 26 Oct 2023 22:00:49 +0000